Labour Relations Act, 1995 (Act No. 66 of 1995)Labour Market and Human Resource Development for Job Creation Social Plan9. Regenerating Local Economics |
| 1) | General Approach |
| 2) | Once a large scale retrenchment which impacts on a region or local area becomes unavoidable, the process of social planning needs to start to look outside the enterprise to developments and opportunities in the local or provincial economy. |
| 3) | The parties support the call for the formulation and implementation of plans for the rehabilitation of areas that are being negatively affected by large scale retrenchments. |
| 4) | Government is committed to providing support to communities that take the initiative to drive economic development in their areas. Government support for such initiatives will need to be co-ordinated and be consistent with other economic and employment strategies in the area. |
| 5) | The Department of Provincial Affairs and Constitutional Development will provide a co-ordinating mechanism for communities seeking assistance in the context of large scale retrenchments. |
| 6) | Developing employment alternatives (stage one) |
| 7) | As soon as a company or sector realises that there will be large scale retrenchments which will negatively affect a local economy the following process should be followed: |
| a) | The affected parties, employers and/or workers, should inform the local or provincial government about forthcoming retrenchments. |
| b) | The relevant local or provincial authority may initiate a process that begins with a study to identify alternative opportunities in the area. The study should inform the development of a plan to ameliorate the impact of the retrenchment. The plan should build on existing information and strategies for local economic development. |
| 8) | Government is committed to providing support to this planning process by means of a centrally co-ordinated fund. |
| 9) | Implementing plans for alternative employment (stage two) |
| 10) | Once a local or provincial government has developed a plan, it will be advised by the co-ordinating government department, as to possible sources of assistance for the implementation of this plan. The sources will include existing and new support measures available from various government departments. |
| 11) | Such measures will include the following: |
| a) | The supply-side measures of the DTI and activities of the Industrial Development Corporation, Khula and the Small Businesses Development Corporation (SBDC). |
| b) | The Department of Constitutional Development's measures to support local government in local economic development. |
| c) | Project support measures from the Department of Public Works. |
| d) | Project support measures from the Department of Water Affairs. |