Question NW4092 to the Minister of Employment and Labour

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21 December 2023 - NW4092

Profile picture: Loate, Mr T

Loate, Mr T to ask the Minister of Employment and Labour

(1)Whether the Government’s negotiations at the National Economic Development and Labour Council in respect of the social compact has progressed substantially in the past 21 months, since the President, Mr Cyril M Ramaphosa, announced the urgent need in his State of the Nation Address in February 2022; if not, why not; if so, (2) how much progress has the Government registered since February 2022 in (a) visibly building a better and more inclusive society, (b) growing the economy, (c) creating jobs and (d) tackling crime and corruption with the help of partners from organised business, Labour and communities in society at large? NW5373E


1. There are some imperatives that must be understood by all when it comes to Social Compact and Social Compacting. Among these, are the following:

  1. Social Compacting is both a process and an institutional framework.
  2. Social Compact traverse on the social dialogue path, it then progresses through collective bargaining processes
  3. Social Compact requires elements of societal partnerships.
  4. Given what is stated above and below, it therefore stands to reason that, Social Compacting is about Unity in Diversity, where common interests are maximised in a principled manner.
  5. Social Compacting is premised from a firm belief that working together, coordinating, collaborating, cooperating, converging, co-creating, networking and building trust between important groupings in society will lead to better socio-economic outcomes than each working separately.

2. The dynamic process of Social Compact is advancing, recognising changing conditions, adapting to them, acknowledging different and/or conflicting interests, navigating through them. It should be stated that some of the elements that are listed on this question may not fall under the ambit of Social Compact, whilst others can be grouped together, and as such are globally responded to.

  1. Emerging consensus was achieved on key binding constraints to economic growth and what should be done especially in relation to energy and freight.
  2. Understanding of the nature of the ESKOM crisis and links to the energy crisis was developed
  3. Signing of the social compact to support ESKOM
  4. The implementation plan has been regularly reviewed and updated making the Social Compact a living and interactive process
  5. Birthed the work of Operation Vulindlela, the National Electricity Crisis Committee (NECOM) and the Operational Partnership between business and government.
  6. Changing nature of NEDLAC Energy Work Stream when NECOM was set up.
  7. Set up co-ordinating structures including a 7-a-side of the leadership of social partners and government.
  8. Improve the eco-system for small business
  9. The structures set up under the Economic Recovery and Reconstruction Plan (ERRP) were consolidated into NEDLAC Chambers and Task Teams.
  10. Establishment of the Presidential Climate Change Commission

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