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Annual Report Employment Conditions Commission

TextEmployment Conditions Commission and Directorate of Employment Standards

Editing, Layout and Design, Photography and DistributionMedia Production Unit

Chief Directorate of Communication

Department of Labour

PublisherChief Directorate of Communication

Department of Labour

Private Bag X117

Pretoria 0001

South Africa

PrinterGovernment Printer

Websitewww.labour.gov.za

ISBN No.0-621-36961-6

2005 -2006

ii

ContentForeword 1

Employment Conditions Commission 2

Chapter One - Executive Summary 3

Sectoral determinations published for vulnerable workers 3

Promotion of social dialogue 3

Input on the Programme of Action for the Eradication of Child Labour 4

Chapter Two - Employment Conditions Commission 5

Composition of the Commission 5

Powers and functions of the Commission 5

Chapter Three - Making of sectoral determinations 6

Domestic Worker Sector 6

Description of the Domestic Worker Sector 6Background to this investigation 7Amendments to the sectoral determination 8Wage increases 8Conditions of employment 8

Farm Worker Sector 8

Background to this investigation 8Amendments to the sectoral determination 9Demarcation and the two-tier wage system 9Deductions 9The 27-hour provision within the sectoral determination 10Wages and demarcation 10Impact of labour tenants on farms and on the minimum wages 10

Forestry Sector 11

Background to this investigation 11Important provisions of the sectoral determination 12Definition 12Scope and application 12Demarcation 12Wages 12Task-based payment 12

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Wage increases 13

Sheltered Employment Factories 13

Background to this investigation 13Wages 13Restructuring process 13Provident fund 14Minister’s decision 14

Taxi Sector 14

Background to this investigation 14Provisions of the sectoral determination 14Application and scope 14Demarcation 15Wages 15

Wholesale and Retail Sector 16

Background to this investigation 16Amendments to the sectoral determination 17Demarcation 17Wages and wage increases 17

National Child Labour Programme of Action 17

Regulations for children between the ages of 15 to 17 years 17Children in performing arts 18Summary of CIPA applications received for the financial year ending March 2006 18Variations to the Basic Conditions of Employment Act, 1997 19

Chapter Four - Current investigations by the Commission 20

Resume of current members of the Commission 21

Foreword The Employment Conditions Commission (ECC) has pleasure in

presenting this report to the Minister of Labour. It is the third report

of the Commission’s activities, covering the period from 1 April 2005

to 31 March 2006.

The Department of Labour is committed to inclusivity in all its

consultation processes, in order to optimally utilise information from the

relevant stakeholders in a sector, so that the Commission can make an

informed decision on issues affecting stakeholders in a sector. This

approach embraces social dialogue as a fundamental principle on which

to build sound labour relations. The Commission therefore consults

extensively with stakeholders in sectors by allowing stakeholders to

submit written inputs to notices, published in the Government Gazette,

and also to make verbal and written inputs during public hearings.

In its third term of office the Commission, advised the Minister on new sectoral determinations as

well as the review of others, namely:

1. Taxi Sectoral Determination

2. Forestry Sectoral Determination

3. Farm Workers Sectoral Determination

4. Domestic Workers Sectoral Determination

5. Wholesale and Retail Sectoral Determination.

By the nature of the sectors that the Commission has been involved in regulating so far, it is

evident that the Commission has played a major role in improving the lot of vulnerable workers in

these sectors. This represents the Department of Labour’s contribution towards improving the

socio-economic conditions of workers through worker rights and by extension, ensures that

government’s objective of a better life for all is attained.

This report represents the collective effort of the Commission members, who should be thanked

for their efforts made in contributing to the alleviation of poverty in these vulnerable sectors. The

Commission is also grateful for the role played by our social partners in furnishing the

Commission with their invaluable inputs during the consultation processes in all the sectors where

the Commission carried out its work.

Professor Evance Kalula

Chairperson

Employment Conditions Commission

Professor Evance KalulaChairperson

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Employment Conditions CommissionChairperson

Commissioner Labour Market

Expert

Commissioner Labour Market

Expert

Commissioner representing

Organised Business

Commissioner representing

Organised Business (alter-nate member)

Commissioner representing

Organised Labour

Commissioner representing

Organised Labour (alternate

member)

Prof. Evance Kalula

Ms. Debbie Budlender

Prof. HaroonBhorat

Mr. Kaizer Moyane

Mr. Eric Nwedo

Mr. Bheki Ntshalintshali

Mr. MduduziMbongwe

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Chapter One

Executive SummaryThe Commission started its work in 1999 after the disbanding of its predecessor, the Wage

Board. The promulgation of the Basic Conditions of Employment Act, No 75 of 1997 (BCEA)

resulted in the repeal of the Wage Act of 1957 and thus also the Wage Board which was

established in terms of the Wage Act. The BCEA made provision for the establishment of the

Employment Conditions Commission (ECC).

This is the third term of office of the Commission. During this period, the Commission has made

recommendations to the Minister on numerous issues relating to the application of the BCEA. The

following paragraphs describe some of the key achievements during this term.

Sectoral determinations published for vulnerable workers

The Minister requested the Commission to conduct investigations into appropriate conditions of

employment and minimum wages for workers in certain sectors with a view to making sectoral

determinations for those sectors. The Commission has conducted extensive investigations into

three sectors which were deemed to be vulnerable.

Based on the recommendations of the Commission, the Minister established sectoral

determinations for the following new sectors: Forestry and Taxi. On advice from the Commission,

the Minister decided not to establish a sectoral determination for the protected workshop sector.

The Commission also reviewed certain sectoral determinations during this term as the wages of

some of the already established sectoral determinations had lapsed. The sectoral determinations

that were reviewed were:

• Domestic workers

• Wholesale and retail

• Farm workers.

Promotion of social dialogue

As part of the investigations into making sectoral determinations, the Commission with the

assistance of the Department, held public hearings nationwide and obtained views from

representatives of organised business, labour, civil society, academics and other interested

parties on various issues around wages and conditions of employment. Through these hearings,

the Commission was able to hear differing views and afforded people an opportunity to put

forward their views. From this, the Commission gained a wealth of knowledge and experience

which was always considered in the advice the Commission gave to the Minister.

The Commission endorses the principle of social dialogue as an imperative for sound relations

and the fundamental principle on which to build healthy relationships in the labour market.

Accordingly, in carrying out its mandate the Commission strives to encourage collective

bargaining and ‘self-determination’ and thus take into account agreements reached by

stakeholders in the industry. However, because the Commission is providing advice in respect of

sectors which are not well organised, it is necessary for the Commission to exercise judgement

as to whether the agreements, reached by the representatives of the small numbers who are

organised, take into account issues such as the vulnerability of workers and the ability of their

employers to carry on their businesses successfully and the sustainability of the sector as a

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whole.

Input on the Programme of Action for the Eradication of Child Labour

The Department is in the process of implementing the National Programme of Action on the

Eradication of Child Labour and the Commission has been involved in this process.

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Chapter Two

Employment Conditions CommissionComposition of the Commission

The Commission is an independent statutory body established in terms of Chapter 9 of the Basic

Conditions of Employment Act, No 75 of 1997.

The Minister in consultation with the National Economic Development and Labour Council

(NEDLAC) appoints the Commission members. The Commission consists of five members, two

members representing organised business and organised labour respectively, and three members

who are knowledgeable about the labour market and conditions of employment, including the

conditions of employment of vulnerable and unorganised workers. The Minister determines the

terms of office of members of the Commission, which may not be more than three years.

A Chairperson heads the Commission and the Department’s Employment Standards Directorate

renders secretariat support to the Commission in carrying out its duties.

The current Commission members took office in 2005. The following people serve in the

Commission:

1. Prof Evance Kalula - Chairperson: Government appointee

2. Ms Debbie Budlender - Government appointee

3. Prof Haroon Bhorat - Government appointee

4. Mr Kaizer Moyane - Organised Business nominee

5. Mr Bheki Ntshalintshali - Organised Labour nominee

6. Mr Mduduzi Mbongwe - Organised Labour nominee (Alternate Member)

7. Mr Eric Nwedo - Organised Business nominee (Alternate Member)

Powers and functions of the Commission

The powers and functions of the Commission are set out in Chapter 9 of the Basic Conditions of

Employment Act. The Commission is tasked with advising the Minister on matters concerning the

BCEA. These include, amongst others, making sectoral determinations in terms of Chapter 8 of

the BCEA and monitoring trends in collective bargaining for their possible impact on the BCEA. In

addition, the Commission has to advise the Minister and the Minister for Social Development on

child labour and the Minister for public service and Administration on matters concerning basic

conditions of employment in the public service.

The Commission’s advice to the Minister is delivered in the form of a written report. Ideally,

members of the Commission endeavour to prepare a unanimous report to the Minister based on

their deliberations. However, if the members are not able to reach unanimity, each member is

entitled to have their dissenting views reflected in the report.