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Social compact crosses 'red lines': business set to reject investment targets, job cut limits

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President Cyril Ramaphosa.
President Cyril Ramaphosa.
Photo: Jeffrey Abrahams/Gallo Images

Contrary to assertions by President Cyril Ramaphosa in his newsletter on Monday that talks for a social compact are on track, business is gearing up to reject the framework his ministers have proposed, saying that its position has been repeatedly ignored. 

The social partners are due to provide feedback on the social compact framework document to the National Economic Development and Labour Council on Tuesday. The framework document, drafted by the government, sets out the commitments each social partner will make in broad terms. The partners are then expected to meet in a seven-a-side forum next week. 

But Business Unity SA (BUSA), which represents business in Nedlac, has sought a mandate from its members over the past week to oppose both the proposed framework and the social compact methodology entirely, in which partners make "trade-offs" ostensibly for the greater good. 

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