AMERICAN CHAMBER OF COMMERCE IN SOUTH AFRICA

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1 AMERICAN CHAMBER OF COMMERCE IN SOUTH AFRICA P R E S E N TAT I O N TO M E M B E R S O F T H E A M C H A M B E R L A B O U R F O R U M J U LY

2 NAVIGATING THE PRESENTATION 2 CCMA Vision, Mission, Values and Functional Purpose Corporate Governance Delivery Excellence and Challenges The Changing Labour Market 2

3 CCMA VISION, MISSION, VALUES AND FUNCTIONAL PURPOSE Members of the Farm Workers Committees from the Grahams town and Alexandria area who attended a Best Practice Workshop initiated by the Eastern Cape Port Elizabeth DM&P Team 3

4 VISION MISSION VALUES To be the premier dispute prevention, management and dispute resolution organisation The purpose of the CCMA is to promote social justice and economic development in the world of work and to be the best dispute management and dispute resolution organisation trusted by our social partners Respect Excellence Accountability Diversity Integrity, Transparency, 4 4

5 MANDATORY STATUTORY FUNCTIONS 5 Conciliate Workplace Disputes; Arbitrate disputes that remain unresolved after conciliation; Facilitate the establishment of workplace forums and statutory councils; Compile and publish information and statistics about its activities; Consider applications for accreditation and subsidy from Bargaining Councils and private agencies; Establish picketing rules Provide training and advice on the establishment of collective bargaining structures, workplace restructuring, consultation processes, termination of employment, employment equity programmes and dispute prevention.

6 DISCRETIONARY STATUTORY FUNCTIONS 6 Supervise ballots for unions and employer organisations; Provide training and information relating to the primary objective of the LRA; Advise a party to a dispute about the procedures to follow; Offer to resolve a dispute that has not been referred to the CCMA; Publish guidelines on any aspect of the LRA and to make rules

7 DR PROCESSES - RIGHTS DISPUTES 7 CCMA Rights Disputes LABOUR COURT Con-arb If unresolved Conciliation Arbitration If unresolved Adjudication Award Judgement

8 DR PROCESSES - INTEREST DISPUTES 8 CCMA Interest Disputes Conciliation Strike / Lockout If unresolved

9 THE CCMA DOES NOT HAND OUT LICIENCES TO STRIKE 9 The CCMA s role in the labour market is not to prevent strikes but to ensure that it provides an avenue for parties to continue negotiations to ensure labour market stability and promote industrial peace. The CCMA monitors labour market developments through a labour market monitoring tool that ensures that collective bargaining disputes are tracked to ensure that appropriate offers to assist are extended. The CCMA will also offer assistance in unprotected strikes to firstly assist in ensuring a return to work and ensure parties are kept in process to deal with the issues.

10 STRIKE STRIKE STRIKE 10 Any party to a dispute about a matter of mutual interest may refer such to the CCMA (S134 of the LRA) The CCMA has 30 days to resolve the dispute or parties may agree to an extension. If the dispute remains unresolved, either party may give 48 hours notice of strike or lockout. In terms of S150, the CCMA may offer to resolve a dispute through Conciliation, if resolution of the dispute would be in the public interest: Assistance may be requested by either party or by an offer extended to all parties by the CCMA. S150 offers of assistance may only proceed with both parties consent (in writing).

11 PICKETING RULES 11 Parties may approach the CCMA to attempt to agree picketing rules (S69 LRA). If no agreement reached the CCMA must establish or set picketing rules. The Code of Good Practice for Picketing established by NEDLAC, must be taken into account when establishing picketing rules. A picket may be held- In any place to which the public has access but outside the premises of an employer; or With the permission of the employer, inside the employer s premises. The permission may not be unreasonably withheld.

12 STRIKE BY NUMBERS 12 Country Average % workdays lost per year Relative average workdays lost to SA Brazil Russia India South Africa Nigeria United States Turkey The proportion of workers involved in strikes (over total employment) peaked in 2007 in Mining, at approx 38%. Total percentage of formal sector workers involved in strikes was only 1.1% in 2003, 6.7% in 2007 and 2.2% in In 2007, percentage of working days lost was greatest for Community sector, but only at 1.55%. The Mining sector averaged at about 0.42%. The total percentage number of days lost to strike action, over total working days per year in 2011, was 0.2%. South Africa ranks 7 th lowest out of 8 similar economies internationally, in average percentage workdays lost per year. Average percentage workdays lost per year in these countries from is 12.26%, but South Africa is only at 3.77%. South Africa s average strikers intensity from was 28/1000 workers, lower than Austria, Spain, Israel and many others. Bhorat: Measuring The Financial Impact Of The CCMA s Job-Saving Initiatives On The South African Economy 30 May, 2014

13 CORPORATE GOVERNANCE Governing Body Chair Daniel Dube Director Nerine Kahn 6

14 Executive Authority Minister of Labour Parliament Organized Labour Government Governing Body Director Audit Committee Organized Business Governance, Social and Ethics Committee Essential Services Committee Commissioners & Staff Accreditation & Subsidy Committee Human Resource and Remuneration Committee Finance and Risk Committee 14

15 DELIVERY EXCELLENCE AND CHALLENGES Delegates to the CCMA/ILO Decent Work Contract Cleaning Sector Summit held in Johannesburg

16 INCREASING ACCESSIBILITY - CCMA SERVICE DELIVERY CENTRES 16 National Stakeholder Leadership Opened two new offices : Vaal and Welkom

17 17 Collective Bargaining NUM and Northam Platinum Mine NUM and Exarro Coal Platinum Sector AMCU and Lonmin, Amplats, Implats Verification Exercise Bokoni Platinum Mine Facilitated Task Teams Glass Sector National Bargaining Council for the Road Freight and Logistics Industry Hospitality Promoting labour market peace and stability

18 CASE DISTRIBUTION BY ISSUE

19 CASE DISTRIBUTION BY SECTOR

20 SECTOR WAGE INCREASE WAGE INCREASE SIGNIFICANT CONDITIONS OF EMPLOYMENT AVERAGE MIN MAX Mining Coal 9% CPI year agreement Year 1-9% ; Year 2 and Year 3 CPI + 1 Motor Industry Fuel Retailers / NUMSA 9.87% 9% 11.6% Year % ; Year 2 & 3 9% Motor Automotive 9% 10% 8.5% 3 year agreement : Year 1 10% ; Year 2 & 3 8.5% - Once off additional incentive according to pay scale Mining - Gold 8% 8% 8% Clothing Industry 8.55% 7% 10.1% Urban workers 7% ; Metro workers 10.1% Civil Engineering - BCAWU 9% 8% 10% 2 year agreement Grades 1 4 at 10% ; Grades 5 9 at 8% ; Night shift allowance 7.5% Civil Engineering - NUM 12% % 12% 12% 2 year agreement Private Health 6.9% 6.9% 6.9% Medical scheme R1544 Private Health 7.25% 7.25% 7.25% Transport (Road Passenger) 9.75% 9.5% 10% Local Subsistence and Travel Allowance R415 per night, Cross Border Subsistence and Travel Allowance R per night Transport (Intertoll) 10% 10% 10% Min Wage R2400 Sugar Industry 8.5% 8.5% 8.5% Effective 01 st November 2013 Group A R200.00, Group B R150, Min Wage R Services 7.75% 7.75% 7.75% Travel allowance R6000 per month Chemical (Glass) 7% 7% 7% Chemical (FMCG) 7.5% 7.5% 7.5% Chemical (Industrial Chemical) 7.75% 7.75% 7.75% Chemical (Pharmaceutical) 7.5% 7.5% 7.5% Mining (Diamonds) 9% 9% 9% Mining (Platinum) 9 8.5% 9.5% 2 year agreement plus R3000 ex gratia payment Telecommunications 6% 6% 6.8% 3 year agreement, Standby allowance 6 percent 20

21 Collective Bargaining Trends 21 Processes across all CCMA offices S150 - heard S150 - settled Period Total Settlement rate 01 st January 2013 to 31 st Dec st January 2013 to 31 st Dec 2013 S150 Settlement Rate Financial year 2013 / % S150 Acceptance Rate Financial year 2013 /2014 Offers made Accepted 236 (97.5%) Mutual Interest matters Financial year 2013 / (Average of 316 heard per month 68.6% EFFICIENCY 2013/14 Conciliation Settlement Rate 75% Arbitration Settlement Rate 53% Mutual Interest Settlement Rate 68.6% Section 150 Settlement Rate 82.1%

22 RENTRENCHMENT DISPUTES 22 S189A Trends Main economic centers account for the majority of retrenchment matters: Process 2013/14 Total Number of S189A Facilitations Total Number of S189 referrals (individual retrenchment disputes) Region 2013/14 Total S189A Gauteng Kwa- Zulu Natal Western Cape % 79 15% 59 11% % 2013/14 S189 Percenta ge % % %

23 JOB SAVING 23 45% of those jobs likely to be affected by retrenchment have been saved / 2014 Employees likely to be affected Retrenchments Total Forced Voluntary Jobs Saved TOTAL

24 NUMBER OF JOB SAVED STATISTICS BY SECTOR Sector Employees Retrenchments Jobs likely to be Total Forced Voluntary Saved affected Agriculture Banking/Finance Building / Construction Business/Professional Chemical Clothing/Textile Communication Contract Cleaning Distribution Education Electrical Entertainment Food/Beverage Furniture Health Hospitality Leather Media Metal Mining Motor Parastatal Paper/Printing Religious Retail Rubber/Tyre Safety / Security (Private) Services Telecommunication 21 Transport Wholesale TOTAL

25 TRAINING LAYOFF APPLICATIONS 25 No. Employees Total cases processed 42 6, 404 Cases approved by the CCMA Advisory Committee. Cases not recommended by the CCMA Advisory Committee

26 CCMA ECONOMIC IMPACT ON ECONOMY Retrenchments T O A S S E S S T H E V A L U E O F F I N A N C I A L C O N T R I B U T I O N T O T H E E C O N O M Y O F T H E C C M A, T H E T O T A L R E T R E N C H M E N T V A L U E O F G D P O F T H E C C M A I N T E R V E N T I O N M E C H A N I S M S A S P R O P O R T I O N O F T H E C C M A S C O S T O F T H E F I S C U S. I T C A N B E S A I D T H A T E V E R Y O N E R A N D S P E N T B Y C C M A I N / I N P R E V E N T I N G R E T R E N C H M E N T S, R E S U L T E D I N R C O N T R I B U T E D T O G D P O R N A T I O N A L O U T P U T. S I M P LY P U T, T H E R E T U R N O N I N V E S T M E N T T O S O C I E T Y A N D T H E E C O N O M Y O F T H E C C M A C A N B E D I R E C T LY M E A S U R E D A S B E I N G S O M E W H E R E I N T H E O R D E R O F P E R C E N T. T H I S A M O U N T I N C R E A S E D F U R T H E R T O R I N / ( B H O R A T, )

27 Above: Senior Commissioner Kaizer Thibedi facilitating a Building Workplace Relations (BWR) intervention for Sun City s Management and the SACCAWU leadership. Above: Users and Stakeholders from the Agri-Sector who attended the Agricultural Sector Forum meeting organised by the Western Cape DM&P Team in Oudtshoorn. Above: Mpumalanga Supermarket Management and SACCAWU representatives who participated in a scoping meeting for the Workplace Change & Transformation Project that was initiated by the East London DM&P Team. 27 Above: KZN s DM&P Team members who participated in a community outreach initiative at Chatsworth Unit 3 B on the 18th May 2013

28 THE CHANGING LABOUR MARKET CCMA Johannesburg Regional Office

29 2020 VISION RESPONDING TO OUR OPERATING CONTEXT 29 PROACTIVELY FACILITATING IMPROVED COLLECTIVE BARGAINING PROMOTION OF EMPLOYMENT SECURITY PROMOTING WORKPLACE EMPLOYMENT RELATIONS ENHANCING CAPACITY BUILDING SERVICES (OUTREACH) LABOUR MARKET QUALIFICATION DEVELOPMENT ATTRACTING FUTURE WORKERS AND COMMISSIONERS TO THE CCMA REPOSITION, FURTHER STRUCTURE AND BUILD THE CCMA S RESEARCH UNIT AND CAPACITY IMPROVED INFORMATION AND STATISTICS SUPPORT AND CO- OPERATION WITH OTHER LABOUR MARKET INSTITUTIONS AND BODIES FOR BETTER DELIVERY LEARNING AND CONTRIBUTING TO INTERNATIONAL SHARING OF BEST PRACTICE UPGRADING CCMA COMMUNICATION TOOLS AND WEBSITE ASSESS AND RECONFIGURE CCMA ROLES, STRUCTURES AND CAPACITY

30 OPERATING IN A CHANGING ENVIRONMENT 30 CCMA s role since 2011 has increasingly focused on verification exercises and pronouncing on representivity; There has been an increase in inter-union rivalry, unprotected strikes and the coalescing of workplace and community demands; The CCMA has responded with dynamic flexibility and have decisively and responsibly intervened in workplace and sector conflicts to prevent further escalation; The CCMA has supported Social Partners in their efforts to strengthen collective bargaining and related systems of social dialogue ;

31 KEY UNDERLYING CAUSES 31 Societal Fault Lines - Inequality, Poverty & Unemployment Impatience In The Streets And On Factory Floor Inadequate Awareness Of Internal & External Labour Market Dynamics Ineffective Management Of Industrial Relations Absence Of Meaningful Engagement Absence Of Trust Across In The Labour Market Losing Confidence In The Mechanisms Of (Peace) In The Labour Market Fractious Labour Market Squeeze Of Profit Making Adherence To Inefficient Bargaining Processes

32 Revolutionizing Workplace Relations 32

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