Nedlac executive council meets with National Treasury

The Nedlac Executive Council met with
National Treasury, led by Finance Minister
Nhlanhla Nene, on 27 February 2015
to engage on the National Budget.

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Nedlac executive council meets with the Department of Small Business Development

The Nedlac Executive Council met with the Department of Small Business Development,
led by Minister Lindiwe Zulu 20 March 2015

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Nedlac engagement on a National Minimum Wage

– research documents

(this area is restricted to members of
the Nedlac technical task team)

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14 August 2015

The Nedlac social partners met today under the auspices of the Committee of Principals, chaired by Deputy President Cyril Ramaphosa, to receive a report on the work being done by the Wage Inequality Technical Task Team and Labour Relations Technical Task team. Welcoming delegates, Deputy President Ramaphosa said the Committee’s deliberations were taking place “at a time when there is a great deal of discussion in our country and elsewhere about the state of the global economy and the South African economy”.

At the meeting at Nedlac House, Rosebank, Johannesburg, social partners acknowledged the good progress that has been made in both task teams where government, labour, business and community are on continuous deliberation on improving labour relations and reducing wage inequality in the country.  Progress in the Wage Inequality Technical Task Team includes an agreement around the definition of a national minimum wage. This definition has now been sent to the legal drafters to be worked into a legal definition.

The Labour Relations Technical Task Team has agreed on the need for a Code of Good Practice on Collective Bargaining and Industrial Action. This Code will cover all phases of industrial disputes including pre-negotiation, negotiation, post-negotiation, dispute, strike and lockout, post-strike and lockout. This Code will be used as a training and information-sharing document and it is expected that the Code will assist to proactively and constructively resolve a dispute prior to strike action and to explore all genuine options to resolve disputes as speedily as possible.

The Committee of Principals committed to speed up the processing of research studies on various features of a national minimum wage system, to prepare for the critical milestone of setting a particular financial level for the national minimum wage.

Deputy President Ramaphosa said he was “pleased that we are dealing with substantive issues whose resolution should make a difference to our labour relations culture and practices”.

For more information contact: Kim Jurgensen; 082 619 5050



20 June 2015

Nedlac convened a workshop on international minimum wage experiences on Saturday 20 June 2015.  The workshop was chaired by Deputy President Cyril Ramaphosa and was addressed by experts from Brazil, Malaysia, UK, Germany as well as experts from the International Labour Organisation.

In addition to the above countries experiences were also shared from Argentina, Chile, Colombia, Costa Rica, Mexico, Uruguay, China, India, France, Turkey, Kenya, Mauritius, Morocco and Cape Verde.

The workshop was attended by leaders of Business, Community, Government and Labour as well as constituency members serving on the Nedlac Wage Inequality Technical Task Team.

The workshop follows President Jacob Zuma’s call at the 2014 State of the Nation Address for the introduction of a national minimum wage in South Africa.  The workshop gave an update on progress made in the negotiations, areas of agreement reached and also provided an overview of the wage setting structures in South Africa.

The Deputy President noted that 2015 is the 60 year celebration of the Freedom Charter – which in one of its clauses calls for a National Minimum Wage – and called the engagement “a signal of our determination to address the inequalities that remain in our society”. He pointed out that “for the first time in South Africa there is broad agreement on the need to introduce a national minimum wage. Today is an important step in the process of considering the modalities of a national minimum wage for South Africa”. The Deputy President indicated the importance of understanding the employment effects of the National Minimum Wage in addressing inequality, poverty and unemployment.

The following areas of agreement have been reached at Nedlac through constructive constituency engagement:

  • The national minimum wage shall be the legal floor for a defined period of time, guaranteed by law, below which no employee may be paid in South Africa
  • The national minimum wage will apply to all employees, both in the public and private sectors, unless provided for otherwise by an exclusion, phase-in or phase-out upfront agreement
  • Collective agreements and sectoral determinations may only vary upwards from the minimum wage
  • Although certain exemptions may be needed it is generally agreed that comprehensive coverage is desirable and a patchwork approach should be avoided
  • The body responsible for determining the level will be similar to the Employment Conditions Commission and will be given the necessary capacity to undertake this important task

Evidence is currently being gathered to inform the discussions, particularly around the impact to business and workers in the context of the challenges of unemployment, inequality and poverty.  This workshop forms part of the information-gathering process.

The Deputy President further stated that

“in reaching this point in our deliberation over a national minimum wage, we are reminded again of the importance of social dialogue and the value of an institution like Nedlac”






The Nedlac social partners have condemned violence against foreign nationals and committed to convene a social dialogue on factors surrounding violence against foreign nationals. This emerged from a meeting of the Nedlac Labour Relations Committee of Principals, chaired by Deputy President Cyril Ramaphosa, at Nedlac House, Johannesburg, on Saturday 18 April 2015.

The Committee of Principals comprises leaders of Nedlac’s government, business, labour and community sectors tasked with the responsibility of finalising a national framework and modalities for the introduction of a national minimum wage and reducing labour unrest.

Nedlac expressed its concern for the plight of victims of violence. The Committee of Principals called for a deeper understanding of the social and economic factors behind the current situation and said social dialogue could help achieve this.

All constituencies pledged their support to government-led efforts to protect foreign nationals and protect property, and ensure harmony between South African citizens and foreign nationals.

The Nedlac social partners believe a national dialogue on causes and solutions to the socio-economic factors that underpin the recurring violence would give rise to a multi-sectoral response.  No matter the grievances cited by those perpetrating the violence, Nedlac believes there is no justification for violence against any individual or community irrespective of their country of origin.

The committee met on Saturday 18 April 2015 to receive updates from two technical task teams that are engaging on wage inequality and labour relations respectively. The meeting received reports on matters of process within the task team to give effect to the mandate given by the Labour Relations Indaba of 4 November 2014.


Kim Jurgensen – 082 619 5050



21 February 2015

The Nedlac Labour Relations Committee of Principals met today at the organisation’s offices to finalise terms of reference for the labour relations engagement process (attached). These final terms of reference are drawn from proposals drafted by a task team of the constituencies in a series of meetings from 27 January to 17 February 2015.

The Committee of Principals was established at the Labour Relations Indaba of 4 November 2014. The Ekurhuleni Declaration signed at the Indaba includes an agreement that this Committee would be established.

The committee comprises senior leadership of the Nedlac constituencies and guides the labour relations engagement process. The Committee of Principals is chaired by Deputy President Cyril Ramaphosa.

The Committee approved the establishment of two Nedlac technical task teams that would engage on wage inequality and labour relations respectively. The terms of reference and agenda for this engagement process were also approved.

The Committee will periodically consider detailed, combined progress reports from the technical task teams over the next five months, with the final consolidated report to be submitted to the Committee of Principals in July 2015. A schedule of 15 meetings for the task teams has been agreed, and will commence on 3 March 2015.

The Committee of Principals expressed appreciation for the seriousness and sense of urgency with which the constituencies have approached this important task, and trusts that this spirit of engagement will continue to characterise the negotiations in the months ahead.

Labour Relations engagement Terms of Reference


For more information contact:
Kim Jurgensen
Cell: 082 619 5050




3 November 2014

Nedlac will convene the Labour Relations Indaba on 4 November 2014. The Indaba arises from the State of the Nation Address in June 2014 when the President urged the social partners to address the state of the labour relations environment and in particular to explore issues such as wage inequality and the length and violence recent strikes. The Indaba is convened under the auspices the auspices of Nedlac and will be chaired by the Deputy President.

The Indaba is the beginning of a comprehensive process of engagement to address the underlying challenges in the South African Market guided by the broad theme :

The Indaba will focus on the following two thematic areas.
– Promoting employment and labour market stability, including the right to strike, protracted strikes;
violence, collective bargaining and the role of the State; employment, vulnerability and social protection
– Towards addressing wage inequality – engaging on a national minimum wage

Given the breadth and complexity of these issues it is recognised that the Indaba will be the launch pad for further engagements. Out of this event a process will be crafted with clear time-lines and terms of reference, and which will be undertaken through Nedlac.

A Committee of Principles has been established, to guide the work arising out of the Indaba. This Committee comprises representatives of each of the social partners and will be chaired by the Deputy President.
The media is invited to attend the opening remarks by the Deputy President which will set the scene for the Indaba. The deliberations after that will be closed to the media. There will be a press conference at 16h00 where the Declaration will be presented and questions can be addressed to the Committee of Principals.