DA's Plan for Growth and Jobs - Democratic Alliance

Policy outcome: Flexibility in labour marketReform NedlacReform Nedlac by amending the National Economic Development and Labour Council Act,Act 35 of 1994. Section 3(4) shall be changed so that members representing organisedcommunity and development interests shall be appointed by the Minister on nominationsmade by any registered charity, NGO, or community organisation. Paragraphs will be addedto Sub-Sections 2, 3 and 4 which that require the Minister to consult the executive councilwhen appointing representatives of business, labour and civil society according to thefollowing requirements: they represent a significant community interest on a national basis;they have a direct interest in economic development, employment creation and povertyreduction; and they are constituted democratically. This will make Sub-Section 3(5) obsolete,and it will consequently fall away. Section 5(1) will be amended so that it reads: The Councilshall (a) strive to promote the goals of economic growth, employment creation, povertyreduction, inclusion in economic decision-making and social equity.Remove extension of collective bargaining to non-partiesRepeal Section 32 of the Labour Relations Act, Act 66 of 1996, which extends a collectiveagreement concluded in the relevant bargaining council to any non-parties to the collectiveagreement that are within its registered scope and are identified at a meeting of thebargaining council.Improve ease of hiring and firingAmend Section 189 of the Labour Relations Act, Act 66 of 1996, which imposes severerestrictions on employers wishing to dismiss employees based on operational requirements.This will involve: removing Paragraph 2a and b which requires that consulting partiesattempt to reach a consensus on the method for selecting employees to be dismissed;Paragraph 3, which requires that employers provide extensive documentation concerningthe dismissal to the consulting party, including the prospects for re-employment andParagraph 7a which provides that employers must select employees to be dismissedaccording to criteria agreed to by employee representatives.Amend Schedule 8 of the LRAAmend Schedule 8 the Labour Relations Act, Act 66 of 1996, which details the Codes ofGood Practice governing dismissals. This will involve removing Section 2a, which concernsdismissals for poor work performance, and places the onus on employers to take steps toimprove employee performance prior to dismissal and Section 9b (i) which implies that adismissal for poor work performance could be unfair if the employee claims to be unaware ofthe required work standard.Amend definition of big employerAmend the definition of ‘big employer’ in the Labour Relations Act so that it only applies toentities that employ more than 250 persons. The aim here is to reduce the administrativeburdens faced by SMMEs, and encourage them to employ more people.Enhance temporary employmentRecognise the importance of temporary employment agencies in transitioning people intothe formal job market and support the formal temporary employment agency sector insupplanting illegal and exploitative temporary employment agents. This will be aligned withthe introduction a redesigned and better resourced Labour Inspectorate featuring acomputerised database of registered labour brokers, improved oversight capacity in each of43 | P a g e