social change – concepts & impact of such on forest management address by roger godsmark,...

Social Change – Concepts & Impact of such Social Change – Concepts & Impact of such on Forest Managementon Forest Management

Address by Roger Godsmark, Operations Director, FSAAddress by Roger Godsmark, Operations Director, FSAto SAIF / NCT Field Day, Baynesfieldto SAIF / NCT Field Day, Baynesfield

November 24November 24thth 2011 2011

Presentation OutlinePresentation Outline

IntroductionIntroduction

Proposed New Labour Legislative EnvironmentProposed New Labour Legislative Environment

Proposed New Land Legislative EnvironmentProposed New Land Legislative Environment

ConclusionConclusion

Section 1 Section 1 Introduction Introduction

A Brief History A Brief History

Before we can analyse how social issues will Before we can analyse how social issues will impact on future forest management, we first impact on future forest management, we first

need to know from whence we came.need to know from whence we came.

I believe that there are four phases in recent I believe that there are four phases in recent forestry history that will set the scene.forestry history that will set the scene.

These are….These are….

Phase 1 – up to late 1980’s Phase 1 – up to late 1980’s

No Government interferenceNo Government interference Own operationsOwn operations Extensive social infrastructural support provided by employerExtensive social infrastructural support provided by employer In terms of social issues, employers generally provided social In terms of social issues, employers generally provided social

infrastructure (e.g. housing , clinics, schools, rations etc.) but it infrastructure (e.g. housing , clinics, schools, rations etc.) but it was not a core business imperative.was not a core business imperative.

Characterised by:Characterised by:

Concentrated on managing plantations onlyConcentrated on managing plantations only

Implications for Forest ManagementImplications for Forest Management

Phase 2 – late 1980’s to 1994Phase 2 – late 1980’s to 1994

No Government interferenceNo Government interference Move from own ops to outsourcingMove from own ops to outsourcing Responsibility for social infrastructural support moved from Responsibility for social infrastructural support moved from

employer to contractoremployer to contractor Move towards “clean wage”, generally at behest of unionsMove towards “clean wage”, generally at behest of unions


Management focus shifted from managing plantations to Management focus shifted from managing plantations to managing contractorsmanaging contractors


Phase 3 – 1994 to datePhase 3 – 1994 to date

Huge increase in Government interference (regulations) in all Huge increase in Government interference (regulations) in all aspects of business including introduction of Sectoral aspects of business including introduction of Sectoral Determination for forestry workersDetermination for forestry workers

Move from own ops to outsourcing consolidatedMove from own ops to outsourcing consolidated Decrease in productive areaDecrease in productive area Land claims Land claims


Management more and more focused on issues other than Management more and more focused on issues other than those related to either forestry or contractorsthose related to either forestry or contractors


Phase 4 – The FuturePhase 4 – The Future

Even more Government interference (particularly in the areas Even more Government interference (particularly in the areas of labour law and land reform)of labour law and land reform)

Huge change in land ownership & management pattern (due Huge change in land ownership & management pattern (due to land reform)to land reform)

Increased focus on rights given to residents on farmsIncreased focus on rights given to residents on farms Increased bureaucracy & shift to joint responsibility / liabilityIncreased bureaucracy & shift to joint responsibility / liability


Management focus on plantation management Management focus on plantation management per se per se really really diluted as focus diverted to more social related issuesdiluted as focus diverted to more social related issues


Driver of Social Change Driver of Social Change

Whether we like it or not, it is Government rather than Whether we like it or not, it is Government rather than Industry that sets the Agenda.Industry that sets the Agenda.

Regarding the social aspect of this environment and how Regarding the social aspect of this environment and how it will possibly affect the way we manage forests in the it will possibly affect the way we manage forests in the future, for the purpose of this address, I shall focus on future, for the purpose of this address, I shall focus on

only two areas, namely:only two areas, namely:

• Proposed new Labour Legislative EnvironmentProposed new Labour Legislative Environment

• Proposed new Land Legislative EnvironmentProposed new Land Legislative Environment

FSA has made detailed submissions to DoL and DRDLR on what FSA has made detailed submissions to DoL and DRDLR on what is contained in this presentation; let’s hope they listen!is contained in this presentation; let’s hope they listen!

Section 2 Section 2 Proposed New Proposed New

Labour Legislative EnvironmentLabour Legislative Environment

Labour Relations Amendment BillLabour Relations Amendment Bill

Basic Conditions of Employment Amendment Bill Basic Conditions of Employment Amendment Bill

Employment Equity Amendment Bill Employment Equity Amendment Bill

Employment Services BillEmployment Services Bill

On 17On 17thth December 2010 the DoL published 3 December 2010 the DoL published 3 employment related Amendment Bills and one new Bill employment related Amendment Bills and one new Bill

for public comment, namely;for public comment, namely;

Should these Bills be passed in their current form, it will Should these Bills be passed in their current form, it will change the employment environment dramatically change the employment environment dramatically

Proposed New Labour Laws (main provisions) 1Proposed New Labour Laws (main provisions) 1

Obligation to hire temporary employees on permanent basis (unless can justify to DoL of use of fixed term contracts)Obligation to hire temporary employees on permanent basis (unless can justify to DoL of use of fixed term contracts)

Outlawing of labour broking - in effect their employees become yours.Outlawing of labour broking - in effect their employees become yours.

Employers to be held jointly liable for any unfair labour practice between contractor and contractor’s employee Employers to be held jointly liable for any unfair labour practice between contractor and contractor’s employee

Makes it easier for employee to take employer to CCMA i.r.o. dismissal as a result of operational requirementsMakes it easier for employee to take employer to CCMA i.r.o. dismissal as a result of operational requirements

Non-compliance with certain sections will be a criminal offence (penalties vary between R10 000 & 2 years jail) Non-compliance with certain sections will be a criminal offence (penalties vary between R10 000 & 2 years jail)

A: Labour Relations Amendment BillA: Labour Relations Amendment Bill


B: Basic Conditions of Employment Amendment BillB: Basic Conditions of Employment Amendment Bill

Payment of benefits of to be equal value between those hired on fixed term contracts & on permanent basis

Calculation of wages of those remunerated on basis “other than time” (i.e. task based) to be based on average wage paid over preceeding 13 weeks

Minister given power to set wages not just minimum wages

Minister given power to set Union threshold i.r.o. organisational rights

Contravention will be a criminal offence & employers have no opportunity to rectify non-compliance through compliance order process (penalties R10 000 to 6 years in jail)


All designated employers have to submit EE reports annually (previously only those who employed more than 150 people)All designated employers have to submit EE reports annually (previously only those who employed more than 150 people)

The pool of qualified people and regional demographics will no longer be criteria in determining “representivity” complianceThe pool of qualified people and regional demographics will no longer be criteria in determining “representivity” compliance

Employers have to report on steps taken to reduce income differentials and measures to reduce unfair discrimination i.r.o. conditions of employmentEmployers have to report on steps taken to reduce income differentials and measures to reduce unfair discrimination i.r.o. conditions of employment

It is proposed that penalties be based on turnover (2% to 10%)It is proposed that penalties be based on turnover (2% to 10%)

C: Employment Equity Amendment BillC: Employment Equity Amendment Bill

Proposed New Labour Laws (main provisions) 4Proposed New Labour Laws (main provisions) 4D: Employment Services BillD: Employment Services Bill


Bottom line: more admin & cost of doing businessBottom line: more admin & cost of doing businessMy advice: Hire an excellent labour lawyer & mechanise!My advice: Hire an excellent labour lawyer & mechanise!

Section 3 Section 3 Proposed NewProposed New

Land Legislative Environment Land Legislative Environment

Policy Driving Land Legislative ChangesPolicy Driving Land Legislative Changes

Green Paper on Land ReformGreen Paper on Land Reform

Land Tenure Security BillLand Tenure Security Bill

Communal Property Associations Amendment BillCommunal Property Associations Amendment Bill

Although more, there are three main policies which will Although more, there are three main policies which will shape the environment surrounding land issues in the shape the environment surrounding land issues in the immediate future, namely:immediate future, namely:

From a social perspective, I shall focus only on the Land From a social perspective, I shall focus only on the Land Tenure Security Bill which will form part of the Tenure Security Bill which will form part of the

Government’s new Land Reform initiativeGovernment’s new Land Reform initiative

Draft Land Tenure Security BillDraft Land Tenure Security Bill

Expanded definition of “residents”Expanded definition of “residents”

Extensive rights given to “residents”Extensive rights given to “residents”

Expanded definition of what constitutes an “eviction”Expanded definition of what constitutes an “eviction”

Excessive penalty for contraventionExcessive penalty for contravention

Should this Bill be passed in its current form, it will have Should this Bill be passed in its current form, it will have MAJOR implications (and unintended consequences) for MAJOR implications (and unintended consequences) for the Industry. FSA’s major concerns relate to ..........the Industry. FSA’s major concerns relate to ..........

Definition of “Residents” (1)Definition of “Residents” (1)

Given that “residents” on farms are to be given extensive rights, the expanded definition of those who qualify is alarming. These include not only those who actually Given that “residents” on farms are to be given extensive rights, the expanded definition of those who qualify is alarming. These include not only those who actually work on farms but also work on farms but also “persons associated with persons residing or working on farms”.“persons associated with persons residing or working on farms”. These include the following: These include the following:

SpousesSpouses ChildrenChildren NephewsNephews NiecesNieces ParentsParents Brother and Sisters Brother and Sisters

A: Major ConcernsA: Major Concerns

Fair enough

Problematic

Definition of “Residents” (2)Definition of “Residents” (2)

B: ImplicationsB: Implications

The number of people, many of whom may have no direct The number of people, many of whom may have no direct connection to the farm, will have the right to residence on the connection to the farm, will have the right to residence on the farm in question.farm in question.

A landowner will not be able to control the number of people A landowner will not be able to control the number of people living on his or her property. living on his or her property.

Rights Granted to Residents (1)Rights Granted to Residents (1)

18 rights granted to “each” resident as opposed to only 4 to landowners 18 rights granted to “each” resident as opposed to only 4 to landowners – total imbalance– total imbalance. . Rights unlimited / unconditional. Rights unlimited / unconditional. Most concerning of these relate to:Most concerning of these relate to:

Ownership of livestockOwnership of livestock Grazing rightsGrazing rights Cropping rightsCropping rights Erection of homesteads / residential buildingsErection of homesteads / residential buildings Right to practice “commercial agriculture”Right to practice “commercial agriculture”

No indication as to who is to pay for the provision of these rightsNo indication as to who is to pay for the provision of these rightsNo regard to sustainability in respect of biological resources of farm or practicality of management of commercial farming No regard to sustainability in respect of biological resources of farm or practicality of management of commercial farming


Rights Granted to Residents (2)Rights Granted to Residents (2)

In effect, landowners will have to “share” their land asset with the residents living on their farms.In effect, landowners will have to “share” their land asset with the residents living on their farms.

Residents will have unfettered rights to use landowners’ land thereby hindering the ability of landowners to manage their farms to their maximum economic potential.Residents will have unfettered rights to use landowners’ land thereby hindering the ability of landowners to manage their farms to their maximum economic potential.

Productive areas on farms will decrease and non-commercial areas increase.Productive areas on farms will decrease and non-commercial areas increase.

Commercial production will, inevitably fall.Commercial production will, inevitably fall.

Landowners may be faced with responsibility of paying for the provision of these rights. Landowners may be faced with responsibility of paying for the provision of these rights.


Expanded Definition of “Eviction” (1)Expanded Definition of “Eviction” (1)

The “conventional” definition of what constitutes an “eviction” has been expanded dramatically to include such things as the following:The “conventional” definition of what constitutes an “eviction” has been expanded dramatically to include such things as the following: closure of schools;closure of schools; interference with performance of cultural practices;interference with performance of cultural practices; denial or prevention of access to water and electricity;denial or prevention of access to water and electricity; refusal to allow burial on the farm;refusal to allow burial on the farm; unilateral reduction of rights protected in this Act;unilateral reduction of rights protected in this Act; not being allowed to own livestock in circumstances where you have previously owned livestock on the same farm or another farm of the same owner;not being allowed to own livestock in circumstances where you have previously owned livestock on the same farm or another farm of the same owner; demolishing of a home;demolishing of a home; forcing different families to live together;forcing different families to live together; forced relocation of a homestead.forced relocation of a homestead.



Does not take into account circumstance of current farming resources Does not take into account circumstance of current farming resources vis à vis vis à vis biological resources biological resources (e.g. in respect of owning livestock) (e.g. in respect of owning livestock) or services or services provided provided (e.g. electricity)(e.g. electricity)

Does not take into account the fact that some decisions Does not take into account the fact that some decisions (e.g. burials or closing of schools)(e.g. burials or closing of schools) may be out of the control of the landowner. may be out of the control of the landowner.

Does not take into account the adopted policy of establishing “agri-villagesDoes not take into account the adopted policy of establishing “agri-villages” (e.g. in respect of “” (e.g. in respect of “forcing different families to live together”)forcing different families to live together”)

Does not take into account operational safety requirements Does not take into account operational safety requirements (e.g. electricity provision to residents living in high fire risk forestry areas). (e.g. electricity provision to residents living in high fire risk forestry areas).

A: Major Concerns (continued)A: Major Concerns (continued)


Many “normal” operational decisions will become illegal and subject to draconian penalties.Many “normal” operational decisions will become illegal and subject to draconian penalties.

A landowner may be found liable for an infringement for which he or she is not directly A landowner may be found liable for an infringement for which he or she is not directly responsible.responsible.

Combined with the proposed eviction procedures, it will be virtually impossible for legal evictions Combined with the proposed eviction procedures, it will be virtually impossible for legal evictions to take place. to take place.


Offences (1)Offences (1)

Section 46 (2) of the Bill states the following:Section 46 (2) of the Bill states the following:““Any person who contravenes a provision of this Act is on conviction Any person who contravenes a provision of this Act is on conviction

liable to liable to imprisonmentimprisonment for a period not exceeding for a period not exceeding five five yearsyears””

A: Major ConcernA: Major Concern

B: ImplicationB: ImplicationLandowners will be held criminally liable for any Landowners will be held criminally liable for any contravention of the Act which are numerous and, in contravention of the Act which are numerous and, in many cases, ill defined due to the ambiguous nature of many cases, ill defined due to the ambiguous nature of certain provisions certain provisions (especially those related to the (especially those related to the provision of rights and what constitutes an eviction)provision of rights and what constitutes an eviction)

Implications for Forest Management Implications for Forest Management of New Land Law Environment of New Land Law Environment

Farm owners will have to share their asset with residents on their farmsFarm owners will have to share their asset with residents on their farms

Their ability to manage their farms unhindered and for the maximum economic benefit will be compromisedTheir ability to manage their farms unhindered and for the maximum economic benefit will be compromised

Productive areas on commercial farms will drop and non-commercial areas increaseProductive areas on commercial farms will drop and non-commercial areas increase

An increased amount of time will have to be spent dealing with social issues (e.g. “conflict of use” matters, provision of An increased amount of time will have to be spent dealing with social issues (e.g. “conflict of use” matters, provision of services etc.)services etc.)

Bottom line: Management will become more complicated Bottom line: Management will become more complicated and more focus will have to be placed on conflict resolution and more focus will have to be placed on conflict resolution

Section 4 Section 4 Conclusion Conclusion

Conclusion (1) Conclusion (1)

The way we manage forest enterprises will have to change The way we manage forest enterprises will have to change dramatically in order to comply with the requirements of dramatically in order to comply with the requirements of

the new environment that is being createdthe new environment that is being created

The Government’s emphasis on the creation of “decent The Government’s emphasis on the creation of “decent jobs” and enhanced rural development are being articulated jobs” and enhanced rural development are being articulated

through their labour and land policies. These policies will through their labour and land policies. These policies will dramatically change the way we conduct our business. dramatically change the way we conduct our business.

We need to apply innovative ideasWe need to apply innovative ideas

Conclusion (2)Conclusion (2)

Because if we don’t …… we’ll end up like this lady.Because if we don’t …… we’ll end up like this lady.

If she hasn’t already …… believe me she will soon!If she hasn’t already …… believe me she will soon!

Thank You Thank You

social change – concepts & impact of such on forest management address by roger godsmark,...

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