Deputy President David Mabuza addressed the 25th anniversary of the establishment of the National Economic Development and Labour Council. Mabuza addressed ways of  compacting for economic recovery in the time of Covid-19. NEDLAC is one of the first post-apartheid institutions established at the birth of democracy. 

Mabuza said over the past years  NEDLAC has sought to consolidate our democratic revolution and has proven to be an indispensable institution, and platform for the promotion of equitable participation and representative social dialogue. This fits in well with the value that the post-democratic government put on consultation, participation and inclusivity. 

Looking into South Africa's Economic Recovery in the Time of Covid-19, the duputy president said at this moment, not only has South Africa and the world been confronted with a once in a century disruptive event – the Covid-19 pandemic, but the government has had to address this pandemic in a situation of economic distress. 

The Covid-19 pandemic and economic crisis, has taken a toll on all South Africans. Moreover, we face the possibility of a resurgence of the virus – not only as we move into the December period, but also at the start of the year as travellers return to work, and later as we move from summer to winter. 

In the beginning, when the pandemic reached our shores, our response was to ensure that our health care system has the capacity to carry the increasing burden of treatment for those infected by Covid-19 in order to save lives, while ensuring that the provision of normal health care services is not adversely affected.

He added that the  raft of measures we had to implement to contain the virus and flatten the curve of new infections, included the implementation of nationwide lockdown that impacted on economic activities and jobs. Whereas these measures have assisted a great deal in preventing a catastrophe, we regret that many of our compatriots lost their lives, including frontline workers who died in the line duty.

Nevertheless, Mabuza said he is of the view that if it was not for organised business, labour and community in their own constituencies and working collectively at NEDLAC, we would have been worse off in our response to the pandemic and nationwide lockdown. 

As such, government  applauds NEDLAC's efforts in supporting each other, the efforts at income replacement through the Covid-19 Temporary Employer-Employee Relief Scheme, the payment or contribution holidays that were negotiated, the collaboration and provision of technical expertise for example to introduce innovation in social grants, and the rapid mobilisation of much needed funds by the Solidarity Fund. 

Furthermore, he said  he  understands that there has been more agreement and speedy collaboration than ever before at NEDLAC on issues such as health and safety in the workplace, measures to make transport safer and the promotion of locally produced personal protective equipment or PPEs. 

More than any other time in recent history, the role and function of NEDLAC is an existential necessity, to assist in mobilising confidence and credibility for the economic reconstruction and recovery plan. 

 Government also welcomes and has embraced the speedy work of the social partners, in delivering a social compact to turn the economy around. The widening trust deficit between government, labour and business demands full support of the structural interventions and enablers contained in the economic reconstruction and recovery plan. 

Mabuza stressed the commitment to the speedy implementation, especially of necessary structural reforms and long outstanding measures in areas such as energy security and digital migration.  And we are further committed to work with social partners where implementation requires a co-ordinated approach, as well as continue to discuss difficult issues that can make our economic recovery sustainable and enduring. 

The NEDLAC 2020 summit was significant because this occasion included  signing the Framework Agreement for a Social Compact on supporting Eskom for Inclusive Economic Growth. Mabuza said Purposeful partnerships through social compacting, are important to support the enhancement of our maturing democracy and the bureaucracy critical for provision of basic services in a non-partisan manner.  

This is the main premise and argument of the Indlulamithi Scenarios which say that “levels of interpersonal and intergroup trust” are about the shared expression of common values and a common vision as encapsulated in our country’s Bill of Rights and the National Development Plan.

He added that government is excited to be witnessing the signing of this Social Compact, as it signifies confidence in Eskom and its importance to the South African economy. This is in sync with the work of the Eskom Political Task Team that is chaired by the Deputy President to bring together key players within government towards the resolution of challenges facing Eskom. The resolution to the ongoing Eskom matter and stabilisation of energy supply is critical to inclusive economic growth, employment creation and poverty reduction. 

The negotiation of this Social Compact began about a year ago when everyone was seized with the energy crisis facing South Africa – with the prospects of load shedding and high electricity prices. This year has seen significant stabilisation of Eskom operations under the current leadership, and with the support of the Eskom Political Task Team, there is a clear path towards energy security.

The Social Compact remains relevant and will be an important vehicle to hold Eskom to account to rectify the problems of the past, and serve the people of South Africa with sustainable supply of electricity going forward.

The Eskom Social Compact and the Economic Reconstruction and Recovery Plan deserve our full support. There is no room for apathy and cynicism. There is no tangible benefit in being enemies of hope. Rather, we all benefit together when we are friends to optimism.

In achieving this Mabuza said NEDLAC is an appropriate platform that is capacitated to pursue issues for which we have a common interest. 

“We must spare no effort in repositioning NEDLAC to become a relevant platform of social dialogue in our country. If we are to build NEDLAC into a vibrant and agile institution that is fit-for-purpose, we have to move swiftly to amend its founding legislative instruments so that there is inclusion and participation of the Community Constituency in all Chambers and structures of NEDLAC.”