Deputy President Paul Mashatile said on Friday that although the National Economic Development and Labour Council (Nedlac) has played a central role in shaping policies to improve the socioeconomic advancement of South Africa, there is still a huge responsibility to address the persistent challenges of poverty, unemployment and inequality.

Delivering the keynote address at Nedlac’s thirtieth Annual Summit, held virtually in Johannesburg, Mashatile spotlighted the controversial National Dialogue as crucial for addressing the challenges facing South Africans.

Last month, the Government of National Unity held its first sitting of the National Dialogue agenda-setting National Convention in Pretoria, which Mashatile hailed as a success.

Billed as a popular opinion canvassing and grassroots agenda-setting opportunity, seven prominent legacy foundations withdrew from the National Dialogue Preparatory Task Team in the lead-up to that National Convention event, while Solidarity Movement and its affiliates also withdrew, attributing the decision to their belief that the National Dialogue process had been “hijacked” by the African National Congress.

Some opposition parties also opted not to participate.

In his keynote Mashatile quoted former President Nelson Mandela’s address during Nedlac’s fourth Annual Summit, where he said job creation was the country’s main challenge.

“Our democratic gains will remain fragile and our freedom shallow, if they do not bring real improvements in the lives of our people, especially the poor. All of us do recognise that job-creation is critical to the alleviation of poverty,” Mandela said.

Twenty-six years after that address, South Africa was still grappling with the same challenges, with Mashatile noting the results of the Quarterly Labour Force Survey for the second quarter of 2025.

South Africa's unemployment rate worsened by 0.3 of a percentage point to 33.2% in the second quarter, compared with the unemployment rate of 32.9% reported for the first quarter of the year.

Last month, Statistics South Africa reported that there had been an increase of 19 000 in the number of employed persons to 16.8-million, while there was an increase of 140 000 in the number of unemployed persons to 8.4-million in the second quarter. This represented in an increase of 159 000 in the labour force during the same period.

“This situation will further be aggravated by the implementation of 30% tariffs on South African exports to the US. The increase in US tariffs will continue to threaten the already unstable jobs in agriculture, the automotive industry, manufacturing, and the mining sector, with a potential of wiping out thousands of jobs and livelihoods,” Mashatile explained.

LEGISLATION

Meanwhile, Employment and Labour Minister Nomakhosazana Meth announced that the Nedlac Bill 2025, which seeks to repeal the Nedlac Act of 1994, will go to Cabinet for approval, on Wednesday, to publish for public engagement.

She said this was a "great milestone", underscoring that Nedlac had achieved successes amid challenges: from shaping labour law reforms to strengthening dispute resolution and incorporating community representation into national dialogues.

Meth highlighted that equality must extend beyond intent to measurable results.

In April, the Department of Employment and Labour published the Employment Equity Regulations, prescribing five-year equity plans with sector-specific numerical targets, including a 3% disability employment goal.

These are binding on designated employers from September 1.

She explained that these measures were not without debate, noting the Democratic Alliance and a few others launched a legal challenge, citing potential constitutional concerns and impact on investment.

“…yet, the policy is a bold step toward dismantling the enduring racial and gender disparities that remain entrenched. The gender gap in graduate unemployment rates is 15% for women vs. 8.9% for men—this illuminates the urgency of institutional and cultural transformation,” she said.

She said these frameworks must be implemented with rigour and empathy, recognising that equality was a cultural shift as much as it is a legal mandate.

INTENSIFYING EFFORTS 

Mashatile also acknowledged the importance of Nedlac in promoting an enabling environment through sector-specific interventions, support for small and medium-sized enterprises, skills development programmes and employment initiatives.

“… that is why Nedlac must continue to intensify its efforts to provide oversight for Jobs Summit agreements, support small and medium-sized businesses and youth entrepreneurs, develop sector-specific interventions, and ensure labour market policies promote inclusive growth and decent work,” he said.

He pointed to Nedlac’s capability to alter the country’s trajectory through collaboration and a shared objective.

“As a nation, we must draw lessons from one another as we work to rejuvenate our economy, decrease unemployment, and foster inclusive growth.

“What we need to be honest about is that the journey towards true solidarity, equality, and sustainability is still lengthy and challenging but achievable. This journey demands steadfast dedication, courageous actions, and a shared vision that goes beyond personal interests,” he said.

He urged citizens to play a role in advancing inclusive economic growth and social equity.

Mashatile said government was optimistic that the Nedlac 30-Year Project launched in May last year, would create proposals that assist government in fast-tracking programmes aimed at improving energy efficiency, infrastructure development, local government reforms, freight logistics, public transport and digital transformation.

He said this project should assist government in accelerating the implementation of structural reforms aimed at achieving faster, more inclusive and sustained economic growth as envisaged by Operation Vulindlela.

“We must concentrate our efforts on promoting equality. This should entail the dismantling of systemic barriers that sustain discrimination and exclusion, thereby establishing equal opportunities for all,” Mashatile said.

He noted Nedlac’s dialogue and engagements, which he credited with advancing workplace transformation and improved employment equity, as mandated by the Employment Equity Act.

He said Nedlac’s social dialogue had also resulted in amendments to labour law and initiatives such as the Presidential Employment Stimulus Programme, all of which focus on promoting affirmative action to foster a more equitable workforce.