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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
CCMA Revolutionizing Workplace Relations 2
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
CCMA Revolutionizing Workplace Relations
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
CCMA Revolutionizing Workplace Relations
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
CCMA Revolutionizing Workplace Relations
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DR PROCESSES - INTEREST DISPUTES
Interest Disputes
Conciliation
Strike / Lockout
CCMA
If unresolved
CCMA Revolutionizing Workplace Relations
8
THE CCMA DOES NOT HAND OUT LICIENCES TO STRIKE
CCMA Revolutionizing Workplace Relations
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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
CCMA Revolutionizing Workplace Relations
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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
CCMA Revolutionizing Workplace Relations
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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
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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
CCMA Revolutionizing Workplace Relations 6
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
CCMA Revolutionizing Workplace Relations 14
Government
DELIVERY EXCELLENCE AND
CHALLENGES
CCMA Revolutionizing Workplace Relations
Delegates to the CCMA/ILO Decent Work –
Contract Cleaning Sector Summit held in
Johannesburg
INCREASING ACCESSIBILITY - CCMA SERVICE DELIVERY CENTRES
CCMA Revolutionizing Workplace Relations
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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
CCMA Revolutionizing Workplace Relations
CCMA Revolutionizing Workplace Relations 20
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
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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
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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
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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
CCMA Revolutionizing Workplace Relations 24
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
CCMA Revolutionizing Workplace Relations
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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 Revolutionizing Workplace Relations
CCMA ECONOMIC IMPACT ON
ECONOMY
Retrenchments
CCMA Revolutionizing Workplace Relations 27
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 Revolutionizing Workplace Relations
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
CCMA Revolutionizing Workplace Relations
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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 ;
CCMA Revolutionizing Workplace Relations
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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
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