For the first time in over a decade, we are seeing significant movement and development in proposed changes to South Africa’s labour laws.
These suggestions have largely been driven by the Government of National Unity (GNU) and by the President’s final recognition that the unemployment crisis has become unsustainable.
Recently, we received encouraging news that Nedlac is nearing the end of negotiations between big business, major trade unions, and the government on laws related to dismissals and retrenchments.
Although there are reports that the public should prepare for these changes, we are still some way off from implementation. Lawmaking is a slow process, with legislation having to go through various stages before being finalized and presented to the President.
The process begins with the parliamentary legal team drafting the law, which is then sent to the cabinet for initial approval. After that, it faces a long road of consultations and debates in the portfolio committee, alongside public input.
Nevertheless, it is time to reassess our labour laws – it cannot be business as usual. While the exact details of the proposed changes are not yet clear, agreements have been reached between social partners.
These agreements will be handed over to Minister Thulas Nxesi, Minister of Employment and Labour, by the end of October 2024. However, no final approvals have been made, and nothing has been released for public comment yet.
It’s important to note that these discussions started in March 2021, and three years later, we are finally seeing something positive come from Nedlac.
Addressing unemployment is an urgent priority, and small business growth must be encouraged, allowing employers to create jobs without compromising job security.
One of the key changes seems to be the simplification of dismissal procedures and setting limits on compensation for procedurally unfair dismissals. Additionally, there needs to be clarity on which cases should be referred for adjudication, as the Commission for Conciliation, Mediation, and Arbitration (CCMA) has been overburdened, especially with annual budget cuts.
Sadly, despite these positive developments, there is still an emphasis on race classification in our labour justice system.
It’s perplexing to revisit this, given apartheid’s destructive legacy of race classification. South Africa has no laws to determine an individual's race, colour, or creed.
In legal terms, if someone identifies as Black, it becomes difficult to challenge that. It seems archaic for the Department of Employment and Labour to push for classification when the country is committed to non-racialism. Why should South Africans still be classified by race?
In other updates, the Department of Employment and Labour’s audit outcomes for 2022-2023 have once again been dismal. Despite warnings, the Auditor-General reported disastrous results, including financial statements that were not in line with the prescribed framework.
There were numerous material misstatements, unrecognized accruals, and irregular expenditures, all of which highlight a continuing problem within the department.
On a more positive note, President Ramaphosa has welcomed reforms to the visa regime. Minister of Home Affairs, Dr. Leon Schreiber, has introduced changes that will accelerate the process of supporting economic growth.
These visa reforms are expected to create jobs while bringing highly skilled workers into the country. New criteria for critical skills visas and general work visas are being implemented, with the aim of protecting jobs across industries.
Perhaps the most exciting prospect is the potential for remote workers to come to South Africa, combining work and tourism, and bringing much-needed foreign capital. The President enthusiastically announced that these reforms will bring both skills and money into the country.
At last, the Government of National Unity is starting to produce tangible results, with many more opportunities on the horizon. One can almost feel the excitement in the discussions within the new GNU cabinet.
* Michael Bagraim is a veteran labour lawyer.
** The views expressed here are not necessarily those of Independent Media.
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