The key causes of labour inefficiencies in South Africa do not lie in progressive regulations. They are a consequence of many factors. Weak education and training systems make it difficult for people to move between jobs because they lack broad-based skills and formal certificates. Discrimination still leads too many employers to ignore the talents and capabilities of most workers while relying too heavily on an overpaid minority. And it fosters rigid management styles and work organisation.
Most companies still use archaic apartheid-based grading and wage systems.
In any case, the regulatory framework is not as rigid as some commentators believe. For instance, wage determinations already exempt micro enterprise - and their rates average well under a quarter of the average wage. Too often, deregulation arguments resist the extension of minimum protection to low-wage sectors, such as agriculture and domestic labour. These are sectors that historically were excluded from the main labour laws. It appears, the deregulationists do not want the efficiencies gained through collective bargaining.