Hon Chairperson, hon Minister of Labour, officials of the Department of Labour and its entities, members of the public and hon members, it is with great sadness that we are gathered here today, following a week when we lost the former Minister of Co-operative Governance and Traditional Affairs, Comrade Sicelo Shiceka; the former Minister for the Public Service and Administration, Comrade Roy Padayachie, and Member of Parliament, Florence Nyanda. It is without doubt a fact that these comrades contributed significantly to our struggle for liberation and continued to serve our state and its citizens in the numerous roles they played. To their families we say, "Balale ngoxolo." ["May their souls rest in peace."]
A week ago we celebrated both Freedom Day and International Workers' Day, during an extremely hard period for many workers around the world. Whilst enormous progress has been made regarding workers' rights and working conditions, the past five years have eroded those gains for some.
In Greece, a country with one of the lowest suicide rates in the world, there has been a dramatic increase in the suicide rate since the economic crisis. A 77-year-old pharmacist shot himself in the head on a central Athens square, because of poverty brought about by the crisis. For the Greeks the crisis is reflected in their hopelessness and seeing a bleak future. Before taking his life, the pharmacist left a suicide note that said: "I see no other solution than this dignified end to my life so I don't find myself fishing through garbage cans for sustenance."
For millions of workers, the crisis has put them out of work, and those still at work have been forced to take dramatic pay cuts. This may feel like the story of a nation far from us, so therefore we cannot relate to their story. However, for millions of workers this is a story that reflects the consequences of failed markets that have been driven by greed, without a care for those who labour for their families and loved ones.
As much as these challenges present us with a bleak future, we are similarly presented with an opportunity to right the wrong that has been committed by establishing strong labour market institutions to mitigate the worst effects of the financial crisis. In addition, we have been presented with the opportunity to change the economic policy discourse by protecting the positive gains and ensuring that where there are gaps we cover them.
In South Africa, the future of the labour market requires that government, unions and businesses be decisive in their policies and speak with one voice in regard to reducing unemployment, poverty and inequality. Therefore, we should take pride in the labour market institutions' role in bringing consensus and ensuring open constructive engagement on policy matters. Whilst investment in job creation programmes is important, for obvious job creation reasons, it is also important to recognise and nurture the role played by labour market institutions in the stability of the country.
The government must therefore ensure that it invests deeply in institutions such as the Commission for Conciliation, Mediation and Arbitration, CCMA, and the National Economic Development and Labour Council, to create space for social dialogue and avoid the adversarial engagements that we have noticed in the past. The investment should be in both resources and all partners' respecting the processes and procedures that they have to follow when participating. We therefore welcome the additional allocation of R16 million that has been disbursed to the CCMA over the Medium-Term Expenditure Framework, MTEF, period.
Hon Chairperson, whilst the role of these institutions is quite significant, it is also crucial for both employers and workers, through their respective unions, to invest in the pre-bargaining processes. The Labour Relations Act of 1995 has laid the foundation for this and all appropriate tools are at stakeholders' disposal. However, regulations can do only so much where there is no will. Where employers and unions have not created conducive environments for open communication and co-operation on workplace issues, it becomes visible during wage negotiations, as disputes and strikes are prolonged. This is further confirmed by the nature of referrals to the CCMA. According to the CCMA Annual Report of 2010-11, 80% of referrals are attributed to unfair dismissals and 8% to unfair labour practices.
Given these challenges, we therefore request the CCMA to assist in building workplace relations with a view to bringing about industrial peace. In parallel, we need the CCMA to assist in improving workers' capacity to engage in collective bargaining to link wages to productivity growth. If this goal is achieved, all other broader economic goals, such as economic development and social peace, will automatically fall into place.
One of the greatest achievements by the ANC-led democratic government was the establishment of the CCMA. Almost every South African worker knows the CCMA, be he a white collar or a blue collar worker. Even when some do not fully understand the full mandate of the institution, they at least understand that it has to do with workers' protection.
The CCMA has become synonymous with social justice. It is therefore no surprise that the institution has received a number of awards regarding its outstanding work efficiency. The ANC would like, once again, to congratulate the CCMA for being nominated as one of the top three organisations in the legal sector by the citizens of South Africa, and for receiving awards for Public Sector Excellence in the category, Best Reputation, in the legal sector for three years in a row. [Applause.]
To the Chairperson of the Governing Body, Ms Tanya Cohen, and the CCMA Director, Ms Nerine Kahn, who have displayed outstanding leadership qualities in this institution, please accept our sincere gratitude for work well done, on behalf of the entire CCMA staff and the Governing Body. [Applause.]
Hon Chairperson, the ANC supports efforts by the government towards stimulating economic growth and employment creation. In support of the efforts to stimulate economic growth, fund industrial development and create job opportunities, the Department of Labour, through the Unemployment Insurance Fund, UIF, earlier this year invested an additional R2 billion with the Industrial Development Corporation, bringing the total investment to R4 billion. This investment has created 24 590 new jobs and contributed to saving 18 552 jobs.
Furthermore, the Unemployment Insurance Fund, UIF, and the Industrial Development Corporation, IDC, bond provides capital for funding start-up industries and growing existing industries. The conditions for accessing the funds stipulate that a qualified company must contribute to creating employment opportunities. The total number of jobs saved and created through the UIF and IDC bond is 43 142. In times like these the role of the state and its institutions is put to the test, as the demand for services is high due to the economic crisis which has resulted in high unemployment, poverty and inequality. However, South Africa's challenges are quite unique when compared to nations of similar economic size.
The ANC supports the Budget Vote. [Time expired.] [Applause.]