by Mzwakhe Mbatha

Organised labour considers the NGDS agreement as a way to promote sector-based job creation strategies. This is in spite of the National Growth and Development Summit (NGDS) having been dismissed by many as just another ‘talk shop’. However for organised Labour there are reasons to celebrate in that the agreement reached commits stakeholders to sector initiatives. Sector initiatives, such as Sector Summits result in agreements which act as a means of steering growth and job creation.

In general, slow movement in developing a coherent and overarching industrial policy to stimulate growth has been a primary concern for the labour movement. Unemployment is at unacceptably high levels. What are the reasons for the South African economy’s failure to generate jobs?

Jobless growth has resulted in a situation where poverty continues to afflict the historically disadvantaged communities. The gap between the rich and the poor has widened since 1994 as a few benefit from the restructuring in the economy. The majority find no room for them in the formal economy (as the table demonstrates).

The Labour movement treats growing impoverishment and job losses of the working people as the primary reason for economic intervention. In addition, Labour has argued on a consistent basis that sector initiatives, and in particular Sector Job Summits, are one of the key means of identifying problems in a sector and determining interventions to overcome these.

The NGDS effectively covered the following concerns of Labour Sector Partnership and Strategies: The effective utilisation of sector strategies based on sector coordination in all identified sectors is imperative for economic restructuring towards equitable employment creation growth. The linkages between sectors should be explored as part of the overall process.

Participatory engagement Government has committed itself to convene a meeting twice a year bringing together business and Labour leaders in prioritised sectors to review progress in accelerating and unblocking investment, creating jobs, lowering costs and meeting critical skills needs. Business has further committed itself to secondment of experts and releasing senior shop stewards to work on the ongoing process of developing sector strategies.

Use of Fund for Research into Industrial Development Growth and Equity (FRIDGE) In refining their sector strategies, the constituencies are encouraged to utilise funds from the Nedlac governed FRIDGE to ensure that sector proposals are informed by credible evidence.

These areas of agreement create opportunities for Labour to put clear demands to support their strategies at the sector level.

Defining Household income and growing inequality (1991 –1996)

Source: Taylor Report, 2002

(Mzwakhe Mbatha is a Researcher for the Sector Job Summit Project at naledi)