# Social Category > South African Politics Forum >  There is something wrong with our labour legislation

## Dave A

If ever there was a clue that there is something fundamentally wrong with our labour legislation, it has to be the current municipal workers strike.

Please tell me - how does a union justify commencing a strike action when the gap between demand and offer is 18% vs 6%, in an environment of inflation running at 5-6%, and there have been precious little gathering at the table to debate the issue?

How can the LRA, and particularly that holy cow of centralised bargaining, legitimately claim it promotes peace and stability in employer/employee relations?

I see Pravin Gordhan has muttered that there may need to be changes to labour legislation if employment creation targets are to be met.




> South Africa won't create four million jobs by 2025 on its current growth trajectory unless it changes some labour policies, Finance Minister Pravin Gordhan said on Monday. 
> 
> This is not enough to make a significant dent in unemployment, the minister told an internal auditors' conference in Johannesburg.


As it is, I don't see the target of 5 million jobs created by 2025 being enough to ease the economic position of the vast majority of South Africans anyway. As a goal, it should be seen as the soft political sop it really is.

How about a *real* goal that falls within your term of office, Mr. President - say 2 million real jobs created by the next general elections? Now *that* would impress me.

More likely Mr. Gordhan is going to be told not to air his personal views in public in future, I think.

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## Superscenic

I find it difficult to comment on much of the issues discussed here on this forum regarding our country, its leaders and its majority ..... without.... breaking forum rules.

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## AmithS

Thats exactly it!

What is government doing to help?

They say the SME's are the key to unemployment etc....  

If that is the truth and you really believe in it then show it in your policy....

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## johnwarner75

SA has an extremely un-productive (polite way of saying lazy or indifferent) workforce [in mining, construction, etc] and they aren’t cheep. These strikes just make SA even more uncompetitive

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## Dave A

In this M&G report:



> South Africa's labour legislation is correct, but the political leadership to implement it is lacking, says Anglo Gold Ashanti chairperson Tito Mboweni.


But then he says this:




> Mboweni went on to say that the CCMA had become the last port of call to settle labour disputes.
> 
>  "The labour legislation was designed so that you first went to the CCMA and then, if it could not be settled, went on strike," he said, adding that the fact the CCMA had become the last of port of call, should itself say something about leadership.


No Tito - here's the problem. The *intention* was to have strikes as a last resort, but current labour legislation most certainly isn't *designed* to ensure it happens that way.

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## Outspoken

The logic amuses me.  Strike for a month for whatever percentage - no pay.  Work for a year to make up that percentage, but then there is inflation?????  Worse off than the previous year.  In the old days, if you weren't satisfied with your salary, you left and found another job.  Most influencial words to get the economy going - 'You're fired'!

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## murdock

in he past...the saying it only happens in america...well it looks like we are changing this stiking breaking and damaging property is a way of life in south africa...just like rape...hijackings and now assult GBH during breakins...but i still think the statement of year  has to go to "bodygaurds for policemen" it only happens in south africa

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## Duncan

Murdock, Or better still, free JPMD police escourt and security for the individual that provides them with there sirens and lights. They follow him and are in turn followed, no doubt by G4 security, who no doubt are all being followed by some hijackers wanting to get all three vehicles. ok, might be taking it a bit far here.

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## Blurock

> Please tell me - how does a union justify commencing a strike action when the gap between demand and offer is 18% vs 6%, in an environment of inflation running at 5-6%, and there have been precious little gathering at the table to debate the issue?


Almost all labour problems start with management. How do you justify increases of 30% and more to management and 6-8% for workers? This is in the context of municipal managers earning in excess of R1million and workers earning in most cases less than R60k pm. The manager's annual increase is more than the annual salary of the worker. :Mad: 

In many corporate institutions the same misguided entitlement applies. How do you justify a CEO of a bank earning in excess of R20 million a year? Or the CEO of an Aluminium smelter earning more than R60million a year. Then they still have the audacity to retrench workers to reduce the wage bill!
 :Rant1: 

These people are after all not entrepreneurs who risked their life savings to build up the business. They run no risk and get their bonuses even in bad times. They are after all just managers running the business on behalf of the shareholders.
 :Chair: 

Gone are the good old days when it was an honour to be a councillor or major. The job was done for free with a small allowance or reimbursement for actual expenses which were also limited. Today the town major must be paid in millions and as if that is not enough, councillors and officials even put in false claims etc to steal more. (Travelgate, UK claims scandals etc.) :No: 

I agree that our labour is uncompetitive, lazy, demanding, etc. Our unions are the worst. But who sets the example? Where does it start? :Helpsmilie:

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Dave A (26-Aug-11)

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## Dave A

So you're suggesting their real gripe is "top management" is overpaid?
That would mean they're striking under false pretences - last I checked changing the salaries of councillors and the city manager isn't on their list of demands  :Stick Out Tongue: 

Actually I agree with you about the overpaid municipal managers and councillors, especially when they're not producing the goods. There are exceptions, but the majority really seem to be overpaid seat warmers making precious little contribution.

You raise an interesting point, Blurock. I'd question that the workers have the right to influence the salaries of their superiors - that should be the task of the electorate (or in private companies, the shareholders) - but your point about the knock-on effect based on leadership principles definitely has merit.

Which would imply, if one follows through to source, that it's the *electorate* who are to blame?

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## Outspoken

'The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries'. 
Winston Churchill
However, I do somewhat agree on the huge gap and perhaps one should ask, how much is enough for a lifetime?  But, as far as labor is concerned, we have great comparisons in the likes of Vietnam, South Korea - sadly Africa just doesn't want to learn from what works!

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## Blurock

> Which would imply, if one follows through to source, that it's the *electorate* who are to blame?


I agree. Unfortunately the electorate vote for the party and not for a better South Africa. The electorate are mostly uninformed and very often illiterate. 

That is why there is a greater responsibility on business leaders to be responsible in their actions. Every action has a reaction. Unless we address our social problems, there will be no winners.  :Frown: 

I am all for entrepreneurs getting rewarded handsomely for their initiative , perseverance and the risk that they have to take. I am however fervently opposed to corporate and government managers who are not adding real value, getting paid obscene amounts at the cost of employees.  :Mad: 

Is it not time that both shareholders of corporate institutions and voters alike, address these issues?  :Huh:

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Newretailer (05-Sep-11)

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