american chamber of commerce in south africa€¦ · picketing rules ccma revolutionizing workplace...

CCMA Revolutionizing Workplace Relations 1

PRESENTATION TO MEMBERS OF THE

AMCHAMBER LABOUR FORUM

JULY 2014

AMERICAN CHAMBER OF COMMERCE IN SOUTH

AFRICA

NAVIGATING THE PRESENTATION

CCMA Vision, Mission, Values and Functional Purpose

Corporate Governance

Delivery Excellence and Challenges

The Changing Labour Market


2

CCMA Revolutionizing Workplace Relations

CCMA VISION, MISSION, VALUES AND

FUNCTIONAL PURPOSE

3

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

CCMA Revolutionizing Workplace Relations 4 4

VIS

ION

• To be the

premier dispute

prevention,

management

and dispute

resolution

organisation

MIS

SIO

N

• 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

VA

LUE

S

• Respect

• Excellence

• Accountability

• Diversity

• Integrity,

• Transparency,

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.

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

DR PROCESSES - RIGHTS DISPUTES

Rights Disputes

Con-arb Conciliation

Arbitration

Award

Adjudication

Judgement

CCMA LABOUR COURT

If unresolved

If unresolved


7

DR PROCESSES - INTEREST DISPUTES

Interest Disputes

Conciliation

Strike / Lockout

CCMA

If unresolved


8

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.

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).

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.

STRIKE BY NUMBERS


12

Country Average %

workdays lost per year

Relative average

workdays lost to SA

Brazil 46.40 12.30

Russia 2.51 0.67

India 8.02 2.13

South Africa 3.77 1.00

Nigeria 10.94 2.90

United States 9.51 2.52

Turkey 19.77 5.24

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 2011.

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 7th lowest out of 8 similar economies internationally, in average percentage workdays lost per year.

Average percentage workdays lost per year in these countries from 1999-2008 is 12.26%, but South Africa is only at 3.77%.

South Africa’s average strikers’ intensity from 1999-2008 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

CORPORATE GOVERNANCE


Governing Body

Chair

Daniel Dube

Director

Nerine Kahn

Parliament Executive Authority

Minister of Labour

Organized Labour

Organized

Business

Director

Essential Services

Committee

Governance, Social and

Ethics Committee

Governing

Body Audit Committee

Accreditation & Subsidy

Committee

Human Resource and

Remuneration Committee

Finance and Risk Committee

Commissioners & Staff


Government

DELIVERY EXCELLENCE AND

CHALLENGES


Delegates to the CCMA/ILO Decent Work –

Contract Cleaning Sector Summit held in

Johannesburg

INCREASING ACCESSIBILITY - CCMA SERVICE DELIVERY CENTRES


16

National Stakeholder Leadership

Opened two new offices :

Vaal and Welkom

17

Promoting labour market peace and stability

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


CASE DISTRIBUTION BY ISSUE 2013-2014


18

CASE DISTRIBUTION BY SECTOR 2013-2014


19


SECTOR WAGE

INCREASE WAGE

INCREASE SIGNIFICANT CONDITIONS OF EMPLOYMENT

AVERAGE MIN MAX

Mining Coal 9% CPI +

1 9 3 year agreement – Year 1- 9% ; Year 2 and Year 3 – CPI + 1

Motor Industry – Fuel Retailers / NUMSA

9.87% 9% 11.6% Year 1 – 11.6% ; 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%

Civ il Engineering - BCAWU 9% 8% 10% 2 year agreement – Grades 1 – 4 at 10% ; Grades 5 – 9 at 8% ; Night shift allowance – 7.5%

Civ il 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 – R460.00 per night

Transport (Intertoll) 10% 10% 10% Min Wage – R2400

Sugar Industry 8.5% 8.5% 8.5% Effective 01st November 2013 – Group A R200.00, Group B – R150, Min Wage – R5786.30

Serv ices 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

Collective Bargaining Trends


21

Processes across all

CCMA offices Period Total Settlement rate

S150 - heard 01st January 2013 to 31st Dec 2013

236

S150 - settled 01st January 2013 to 31st Dec 2013

151

S150 Settlement Rate Financial year 2013 /2014 82.1%

S150 Acceptance Rate Financial year 2013 /2014 Offers made - 237 Accepted 236 (97.5%)

Mutual Interest matters Financial year 2013 /2014 3793 (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%

RENTRENCHMENT DISPUTES


22

Process 2013/14

Total Number of S189A

Facilitations 515

Total Number of

S189 referrals

(individual

retrenchment disputes)

6255

S189A Trends

Region 2013/14

Total

S189A

% 2013/14

S189

Percenta

ge

Gauteng 217 42%

2011 48%

Kwa-

Zulu

Natal

79 15%

861 14%

Western

Cape 59 11%

978 16%

Main economic centers

account for the majority of

retrenchment matters:

JOB SAVING


23

45% of those jobs likely to be affected by retrenchment have

been saved.

2013 / 2014 Employees

likely to be affected

Retrenchments

Jobs

Saved Total Forced Voluntary

TOTAL 74983 15654 12865 2783 33694


Sector Employees

likely to be affected

Retrenchments Jobs

Saved Total Forced Voluntary

Agriculture 1730 545 522 23 1185 Banking/Finance 799 1 1 0 1 Building / Construction 2096 750 670 80 1032 Business/Professional 3854 846 688 152 1353 Chemical 792 249 207 42 380 Clothing/Textile 945 7 7 0 838 Communication 973 901 901 0 72 Contract Cleaning Distribution 304 113 51 62 89 Education 91 12 12 0 0 Electrical 163 113 110 3 7 Entertainment 1700 0 0 0 1700 Food/Beverage 15616 666 607 59 14093 Furniture 39 4 2 2 35 Health 108 54 34 20 54 Hospitality 92 92 92 0 0 Leather 290 164 70 94 125 Media Metal 5364 1223 855 368 2725 Mining 29699 7879 6768 1111 6029 Motor 2760 491 167 324 761 Parastatal Paper/Printing 1362 751 491 260 281 Religious Retail 3503 115 23 92 1228 Rubber/Tyre Safety / Security (Private) 518 202 174 28 86 Services 419 319 294 25 100 Telecommunication 21 Transport 1658 93 65 28 1500 Wholesale 87 64 54 10 20 TOTAL 74983 15654 12865 2783 33694

NU

MB

ER

OF

JO

B S

AV

ED

STA

TIS

TIC

S B

Y S

EC

TO

R

TRAINING LAYOFF APPLICATIONS


25

No. Employees

Total cases processed 42 6, 404

Cases approved by the CCMA Advisory Committee.

1 72

Cases not recommended by the CCMA Advisory Committee.

10 603

• T O A S S E S S T H E VA 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 TA L

R E T R E N C H M E N T VA 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 AT 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 2 0 11 / 2 0 1 2 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 LT E D I N R 1 0 . 2 4

C O N T R I B U T E D T O G D P O R N AT 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

1 0 0 0 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 1 3 . 7 3 I N 2 0 1 2 / 2 0 1 3 . ( B H O R AT, 2 0 1 4 )


CCMA ECONOMIC IMPACT ON

ECONOMY

Retrenchments


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.

Above: KZN’s DM&P Team members who participated in a

community outreach initiative at Chatsworth Unit 3 B on the 18th May

2013

THE CHANGING LABOUR MARKET


CCMA Johannesburg Regional Office

2020 VISION RESPONDING TO OUR OPERATING CONTEXT

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


29

OPERATING IN A CHANGING ENVIRONMENT

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 ;


30

KEY UNDERLYING CAUSES

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 CCMA Revolutionizing Workplace Relations

31

Revolutionizing Workplace Relations CCMA Revolutionizing Workplace Relations 32

american chamber of commerce in south africa€¦ · picketing rules ccma revolutionizing workplace...

Documents