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Thread: Is the Labour Relations Act balanced and sustainable?

  1. #11
    Site Caretaker Dave A's Avatar
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    According to the DA -
    Private employers would also have to report and notify the department of any new vacancies or new positions in their establishment within 14 working days after the position become vacant.

    The bill then afforded the minister the power to prescribe how employers should notify the Public Employment Service of all vacancies, going so far as to detail a technocratic list of requirements the minister might impose on firms in this requirement.

    An employer was given the extra administrative burden of having to provide written reasons within 14 days to the director general as to why any departmentally preferred candidate with the required profiles could not be appointed.
    from Business Report here

  2. #12
    Moderator IanF's Avatar
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    By making it harder to employ someone is going to increase unemployment how?
    Only stress when you can change the outcome!

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    Diamond Member wynn's Avatar
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    We need a more conservative approach by 'Gubbemint' to business, a lot more conservatism instead of this rampant interferism.
    "Nobody who has succeeded has not failed along the way"
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    Gold Member Dave S's Avatar
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    Quote Originally Posted by Dave A View Post
    According to the DA -

    I can almost gaurantee the responses that business will get will all be pre-disadvantaged individuals that have a degree/diploma/qualification that was awarded (not earned) after a 2-3 week training course.

    The question is, business is to survive how?
    Today Defines Tomorrow
    Errare Humanum Est Remitto Divinus

  6. #15
    Site Caretaker Dave A's Avatar
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    This story on a recent IMF report puts a different slant on things.
    Contrary to a common perception that the labour market was inflexible, the IMF said the way in which jobs responded to the upswing of 2000 to 2007 and the downswing of 2007 to 2009 demonstrated that this was not the case. It said: "The response of employment to growth was the highest among the G20."

    However, it described wages as "much stickier". The report said: "As economic growth slowed and eventually turned negative during the period 2007 to 2009, wage growth remained strong. The average wage settlement between unions and businesses last year reached 9.3 percent, led by the public sector wage increase of 11.2 percent, significantly outstripping inflation and productivity gains."

    Due to the recession, firms were unable to pass on the higher labour costs and were forced to shed jobs. The report concluded that the wage bargaining framework was not sufficiently flexible.

    Data released yesterday by Statistics SA show the trend was still in place. Between June last year and June this year earnings in the formal sector rose more than 14 percent while 114 000 jobs were lost - a decline in employment of 1.4 percent.

    Kevin Lings, the economist at Stanlib, said: "The reason annual incomes rose despite job losses, was that average monthly earnings of formal sector employees rose by a dramatic 19.2 percent over the year to the end of May."
    full story from Business Report here
    The big takeaway in there would be "The report concluded that the wage bargaining framework was not sufficiently flexible."

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    Site Caretaker Dave A's Avatar
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    Kevin Davie gives an interesting analysis here.
    We are in the strange situation of having shed more than one million jobs but the people with jobs have been winning inflationbusting wage increases. There was a herd of elephants in the convention centre in Durban where the ANC held its national general council. Did anyone notice?

    The ruling party produced a 38-page report, of which two pages are devoted to economic transformation.

    The word "jobs" is mentioned twice. That is one less than the three mentions -- "Jobs, Jobs, Jobs" -- it got on the 1994 election posters. Overall, the two pages reflect a holding pattern, a kicking for touch on key issues.

  8. #17
    Platinum Member sterne.law@gmail.com's Avatar
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    Interesting to see some more activity on this thread. Over the pst 3 days I have been contemplating submitting a paper to the SA Law Reform Commision with the LRA and it's shortcomings as the topic.

    In the interest of fair disclosure, it is a essay competition on critical law studies but they do take heed of submissions, presuming they make sense of course.

    Perhaps if folks can post actual points or issues, it would make good research based on real business and not merely political stances. One of my pressing issues is to erradicate or minimize frivolous referrals and also to make unions more accountable for members behaviour when striking and where unions are making CCMA referrals.
    Any points welcome. As i go along I will post my findings or views for comment and feedback and hopefully I can present a paper based on the real worlds feelings and realities.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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  10. #18
    Site Caretaker Dave A's Avatar
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    The Kumba strike illustrates a point, perhaps.

    Here we have a union going on strike where the gap between the employer and employee seems to be quite narrow. According to the report:
    The NUM is demanding pay rises of between 7,5% and 10% on a one-year deal, depending on workers' category, for its members at Kumba.

    Kumba, the 10th-largest global iron ore producer, had offered wage increases of between 7% and 9,5% on a two-year deal.
    When we look at the economic consequences of strike action, (most recent example being the motor industry), and the effect it has on (ultimately) future employment prospects, you would hope that resorting to strike action would be a last resort on matters of serious consequence, not pretty much a standard step in "negotiations".

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    AndyD (04-Oct-10)

  12. #19
    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by sterne.law@gmail.com View Post
    One of my pressing issues is to erradicate or minimize frivolous referrals...
    Interesting problem - not least because the scale of the problem is probably going to be hard to prove. Lots of businesses settle at mediation on frivilous referrals just to save the time and hassle of running through the full process.

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