South African Chamber of Commerce and Industry PowerPoint Presentation, PPT - DocSlides

South African Chamber of Commerce and IndustrySouth African Labour Environment: Quo Vadis?Presentation prepared by Moeletsi MbekiJohannesburgThursday 23rd April 2015

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Triple Malaise Facing South Africa:Slow growing or stagnant economy Single party dominance Rampant public sector

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Stagnant EconomyResults of low growth Low labour participation in the economy especially among blacks High unemployment, a result of destruction of peasant agriculture High levels of inequality Low social cohesion especially among blacks High levels of popular discontent Fertile ground for demagogy

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Unemployment Rate

Source: Statistics South Africa – third quarter 2013

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Composition of South Africa’s GDP

Source: South African Reserve Bank

Source: Thompson Reuters

Datastream

: EIU – Financial Times 15 June 2011

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Consumer spending as percentage of GDPDeveloped Countries

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Compliments Financial Mail

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Employment trends in South Africa and

elsewhere,1980-2006

Source: World Development Indicators as reported in the WEFA data set

Source: Employment (1980=100) from International Labour Statistics (ILO)

80

90

100

110

120

130

140

150

160

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1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Ireland

Netherlands

South Africa

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Source

Eddels Shoe Factory

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Production and Employment Trends in South African Footwear Industry

Year Local Production Imports Employment 2006              20.35%     79.65% 10 1002005                16.95%       83.05%1995                47.91%           52.09% 23 600 (1997) 1985               78%             22%Source: South African Footwear and Leather Industries Association

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Single party dominanceConsequencesDeclining popular participation in electoral arenaLack of accountability of state systemTransfer of resource to politically powerful rather than to the most productiveHigh levels of corruption especially within the public sectorPoor quality of delivery of social services for the low income groupsHigh levels of conflicts and dissatisfaction

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Working status of ANC and DA voters – 2009 election (Ipsos)

ANC voters

DA voters

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Education status of ANC and DA voters – 2009 (Ipsos)

Level of educationAll ANC supporters %All DA supporters%No education7-Up to some highSchool6229Matric2338Tertiary education/Other832

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Education levels of ANC and DA voters (%) - 2009

Source: Ipsos Markinor

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Rampant public sector Transfer of resources from productive sector to the public sector Creation of sheltered employment for political supporters Low levels of efficiency in service delivery to the poor Debt ridden, parasitic and subsidy dependant parastatalsUnder performance leading to declining confidence in legitimacy of the stateCorruption ridden

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Employment by industry

Source: Stats SA

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Source: Stats SA

Employment by industry

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South African LabourTrade UnionsOrganised labour had allied itself to liberation parties in struggle against apartheid with the hope that the new democratic government would have greater control over the private sector. This expectation has not been met in stead the ruling party has grown the public sector but there are political allegiance conditions attached to workers benefitting from this arrangement. This has led to a growing rift to workers employed in the private sector from those in the public sector. Globalisation has increased competition on South Africa’s private sector. This has heightened the level of insecurity amongst workers in the this sector. This accounts for growing unpredictability in the behaviour of organised labour.

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