30 MAY 1998
Industrial development, redistribution and economic democracy should be implemented through specified transformation in different sectors of the economy. These sectors are:
1.1.1 The public service
1.1.2 The state sector
1.1.3 The social sector and
1.1.4 The private sector
The state should act as a key economic agent. The state is the biggest employer, consumer and investor in the economy. Through fiscal and monetary policies and composition of its budget, it exerts a tremendous influence on the economy. An active, interventionist state is necessary to achieve our goals of economic development – in other words, to overcome poverty and redistribute power, wealth, income and economic opportunity from a small minority to the majority of the citizens.
There has to be a link between our Economic Policy and our vision of socialism. The programme we articulate should be socialist-oriented and should define economic policy in terms of meeting the needs of citizens and further the culture of solidarity, community and social responsibility, open up the space for economic democracy and redistribute wealth, income, assets, opportunities and power.
We envisage an economy composed of the public service, a state sector, a social sector and the transformation of the private sector into a stakeholder sector. We are therefore proposing a significant public and social ownership in the economy as distinct from private ownership.
The RDP remains the cornerstone policy of COSATU. In many respects, the vision outlined in this document is a restatement of the fundamentals of the RDP. However, the RDP is weak in describing a set of economic policies for implementing its vision. We seek to build the on RDP by outlining a coherent set of economic tools and strategies for achieving our vision.
The aim of economic development should be to overcome poverty. The fundamental goal of economic policy should be redistribution and generating economic growth. Redistributive policies should focus on three goals:
1.5.1 Increase productive activity in the real economy, producing more wealth, creating more and better jobs and increasing the range and variety of economic opportunities for the citizens of South Africa.
1.5.2 Meet the needs of all citizens of the country – the need for work and income, for health, shelter, education, decent childcare and provision for old age, as well as a high quality of community life.
1.5.3 Economic democracy (redistribution of power) – meaning the participation of all working people in determining the conditions of their economic activity and general priorities of economic policy.
The focus of our economic policies should therefore be on:
Source: September Commission
2.1 There are a number of key areas of macroeconomic policies which should support our vision and broader employment-creation strategy, these are listed below:
2.1.1 Maintain and expand demand for domestically produced goods and services.
2.1.2 Meet increased demand through an expansion of the productive capacity of the economy, which in turn would generate new jobs.
2.1.3 Stimulate demand by lowering interest rates, pursuing redistributive fiscal policies, and developing effective strategies to boost exports.
2.1.4 Create an environment conducive to boosting productive capacity of the economy. Increase investment to ensure that increased demand can be met though domestic production, and not though greater levels of imported goods.
2.1.5 Ensure that the parameters of fiscal policy are consistent with employment creation and retention strategies. Avoid imposing rigid and rapid deficit reduction targets which limit public expenditure and infrastructural development.
Source: Labour's proposals on Jobs summit
Source: Social Equity, September Commission and Job Summit Document
1.1 The federation reaffirms its rejection of GEAR and government's macro-economic practices which entail:
1.1.1 High interest rates;
1.1.2 Advance a one-sided approach to cutting down inflation;
1.1.3 Advance the mythical notion that the lack of investment in South Africa is the result of non-saving.
1.2 Interest rates should be substantially reduced. This will increase the purchasing power of consumers, facilitate the shift of capital from financial markets into productive investments, and substantially reduce the burden of public debt.
1.3 Alternative ways of addressing inflation need to be pursued through NEDLAC, and at a sectoral level.
Source: NUMSA and Social Equity
2.1 Serious consideration should be given to the impact which the removal of exchange controls has on outflows of resources abroad.
2.2 The state should retain and introduce adequate measurers to ensure that domestic assets are deployed in the national interest.
Source: Social Equity
3.1 The financial sector should be restructured to facilitate the cheap financing of investment. The current statutory and regulatory requirements governing asset deployment of financial institutions should therefore be revisited.
3.2 The policy goal should be the deployment of assets in South Africa and not to move assets offshore.
3.3 We oppose the proposal of the Financial Services Board (in 1996) to permit movement of assets worth more than R50 billion out of the country.
3.4 The Financial Services Board needs to be restructured and its deliberations made more transparent. Labour should be fully represented on the Board.
3.5 The high costs of financial intermediation have to be reduced as they increase the cost of economic activity and impede housing development.
Source: Social Equity
4.1 The Reserve Bank's policies should encourage cheaper credit for targeted sectors.
4.2 The Reserve Bank Board must be restructured and democratised to include civil society representatives.
4.3 In addition, parliament should have an oversight over the broad objectives of the Reserve Bank policies. The legislation should further be amended to ensure that parliament is in a position to play an effective oversight role over the Reserve Banks broad policies.
4.4 The legislation and section of the constitution governing the Reserve Bank should be amended in order to put in place effective mechanisms which will see to it that the Reserve Bank acts in consultation with the Minister of Finance in determining monetary policy (including targeted inflation and interest rates).
4.5 It should be clearly stated that the purpose of such consultation and oversight role should be to ensure that the monetary policy is in line with and assists in advancing overall economic and development policy.
Source: NUMSA
1.1 The government should avoid binding itself to specified deficit targets without first assessing their impact on service delivery, on the ability of the state to extend services to communities previously denied them, and on the institutional capacity of the state. We reject the obsession around the deficit reduction.
1.2 Reducing the deficit too quickly causes deflationary pressure on the economy and slows down economic growth and job creation. Low economic growth in turn discourages investment.
1.3 The achievement and setting of deficit targets should be annually reviewed.
1.4 The need to overcome the legacy of apartheid requires the expansion of state services and their improved quality, as well as substantial state investment in people and social and productive infrastructure. In other words, state must increase its expenditure levels.
1.5 The deficit should be set within a flexible band. This flexibility is particularly important in the context of the South African economy which has not reached the GDP growth rate targets set out in GEAR.
Source: September Commission, Social Equity and NUMSA
2.1 Much of the existing budget expenditure should be redirected towards the required services and infrastructure.
2.2 Embark on a massive housing programme to build 300,000 houses a year, over the next three years. This is estimated to cost at least R10 billion a year.
2.3 Expand quality health care for all, including the unemployed. This should be completed by no later than the end of 1999.
3.1 Demands for a reduction in corporate taxes are based on the false assumption that South African companies actually pay high rates of tax.
3.2 South Africa's tax revenue as a proportion of national income is lower than comparable countries internationally. A study of relative tax levels in 70 industrialised and developing countries suggests that South Africa's tax should be increased from 25,7% of national income to 31% - an extra R25 billion at 1996 prices.
3.3 This means that South Africa's poor are paying higher effective tax rates than other sectors of the population, and that the lower and middle income groups bear a disproportionate share of the tax burden.
3.4 The revenue target should be set within a flexible band. This flexibility is necessary in view of the fact that GEAR's growth targets have not been met.
3.5 All citizens should be registered for tax purposes.
3.6 In line with government's proposal, all SMMEs which receive public contracts must be registered with the Receiver of Revenue.
Source: September Commission, NUMSA and Social Equity
4.1 COSATU believes that the tax system is still highly inequitable.
4.2 There is a need to reverse the declining contribution made by corporate taxes to tax revenue.
4.3 COSATU calls for a thorough ongoing review of the taxation system based on the following principles:
4.3.1 All taxes should be progressive (low for the poor, high for the rich);
4.3.2 Sufficient resources should be made available to ensure the efficient collection of taxes;
4.3.3 The system should allow for effective exemption for the unemployed as well as those receiving disability and social pensions;
4.3.4 The effective rate of corporate taxation needs to be increased through increasing the Secondary Tax on Companies and closing the loopholes in corporate tax.
4.3.5 Increase the top tax rate for those earning huge salaries. Individuals earnings above R200 000 annually should be taxed at a rate of 55%.
Source: NUMSA, SACTWU and Social Equity
4.1 No VAT should be payable on all basic foods, medicines, water, domestic electricity and education. This will offer effective, easily administered relief to the unemployed and to low and middle-income earners.
Source: Social Equity and SACTWU
4.5 Introduce a capital gains tax
4.5.1 A capital gains tax should be considered to deal with individuals who are able to amass a large tax-free source of wealth. Some minimum threshold should be set whereafter a capital gains tax should be applicable. Careful consideration should be given to ensuring that the capital gains tax is structured to limit opportunities for tax avoidance.
Source: Social Equity
4.6. Introduce progressive taxes such as land and wealth taxes
Source: Economic Policy Conference 1992
4.7 Introduce a luxury goods tax
4.7.1 A special excise tax should be introduced on luxury goods. This should exclude basic electronic and white goods (fridges, stoves, etc.). As electrification proceeds, more poor families will require such basic commodities.
4.7.2 We propose that the Department of Finance identify a list of such luxury goods, for submission to NEDLAC for comment.
Source: Social Equity
4.8 Tax and Pensions/Provident Funds
Option 1:
Pension and provident funds should be exempted from tax at retirement;
Source: NUMSA
Option 2:
Equal tax treatment of provident and pension funds.
Source: Social Equity
4.8.1 The Smith Commission's pension enhancement proposal for low income earners who participate in provident funds should be implemented so as to encourage savings and counteract the regressive effect of taxation on the earnings of the retirement industry.
4.8.2 Savings can be encouraged through a National Provident and Pension Fund.
4.8.3 At least half the seats on pension and provident fund boards should be occupied by elected worker representatives.
4.8.4 As pension and provident funds payments are understood to be employees' deferred wages, employers should not have the right of access to pension and provident fund surpluses. Legislation should be amended to give effect to this.
Source: Social Equity
Option 1:
5.1.1 Government's debt increased from R80 billion in 1989 to R337,6 billion in March 1998 which is 55% of the GDP. Two thirds of this debt was created in the 1990's and used by the NP's cruel government to finance the end of the apartheid government including paying out golden hand shakes to its generals.
5.1.2 Out of a total of R205 billion in government spending in the 1998/9 national budget, some R43 billion will be interest payments to service the debt. This should be compared to R88 billion to be spent for all social services.
5.1.3 A staggering 95,6% of this debt is made up of internal debt with foreign debt, at 4,4%. The internal debt is made up of the following:
- Public Investment Commissioners (mainly from public sector pension funds but includes parastatals) = 40,0%
- Reserve Bank = 4.1%
- Banks = 7.3%
- Insurers = 16.3%
- Private and Pension Funds = 4.2%
- Others (holdings by house holds, private business, charities) = 28,1
5.1.4 The current "fully funded" pension system means that the following contributions are made to the public sector pension fund each year:
- Government's contribution as an employer= R9 billion
- Public employees contribution= R4 billion
- Interest payment on pension fund debt= R18 billion
- Total payment into the fund = R31 billion
5.1.5 It is estimated that pay-outs from the fund each year amount to R13 billion. This means that an additional R18 billion rands is paid into the fund as part of the "fully funded" pension system.
5.1.6 A pay-as-you-go system should be introduced in the public service pension fund, thereby freeing R150 billion in interest bearing debt. This would release roughly R18 billion a year which in turn will reduce the deficit by 76%. This additional money can be used for investment and to strengthen the government's capacity.
5.1.7 40% of government's debt of R337,6 billion consists of the public service pension fund debt, on which costly interest payments have to be made.
5.1.8 High interest rates are not only hurting smaller job-creating firms but also increase the government debt.
5.1.9 The government should look critically at the internal debt repayment in terms of the period and interest rates and re-evaluate those that were used to destroy underprivileged communities.
5.1.10 COSATU, together with the Alliance and progressive NGOs, should look at the possibility of making a call and campaign for the scrapping of the debt held by companies such as banks, in line with our call for the scrapping of the international debt.
Source: September Commission and Social Equity
Option 2:
Source: CWIU
5.2.1 "The odious debt" (foreign debt which makes up 4.7% of the total debt) incurred by the previous government has to be reviewed.
5.2.2 The continued servicing of the national debt has socio-economic implications for South Africa, hindering its ability to address unemployment. The debt should either be scrapped or repaid on more favourable terms.
5.2.3 COSATU should actively support the international campaign against foreign debt.
5.2.4 In the short term, every one rand in five currently used to service the public debt should be allocated to RDP projects.
5.2.5 Government should investigate other sources of borrowing that would not lead to an escalation of interest rates and should also explore creating its own institutions of borrowing.
Source: SADTU, CWIU, SAMWU and NUMSA
6.1 Part of the historic commitment of the liberation movement that "The people shall govern" means that parliament – as elected representatives of the people – should be empowered to play an effective oversight role with regards to the budget.
6.2 Therefore, legislation empowering parliament to amend money bills such as the budget, should grant significant powers to parliament to increase and decrease individual department's budget votes, to introduce expenditure items into the budget and to effect changes to Bill's imposing taxes, levy's and duties.
6.3 In addition to the parliament's oversight role with regard to the budget, it is important that there be broader participation in the process of drawing up the budget. Such participation could be facilitated through discussion on the proposed budget.
6.4 The Medium Term Expenditure Framework (MTEF), its parameters and its underlying economic assumptions must be negotiated in parliament and at NEDLAC some months prior to the presentation in parliament. There is no contradiction between such an increased consultative process and parliament having ultimate oversight over the entire process.
Source: Resolutions Committee and parliamentary submissions
If no serious attempt at redressing the inequities of the fiscal policy are made, COSATU should call for a major campaign on tax with its alliance partners and civil society bodies.
Source: NUMSA
1.1 For COSATU, industrial policy is not confined to promoting exports. Such a policy will have limited success. There is a need for an interventionist policy so as to build internationally competitive industries without ignoring the need to address national social and economic interests. An interventionist approach could, for example, employ taxation sticks and incentive carrots to encourage industries to invest in education and training.
1.2 The fundamental objective of industrial policy should be a significant increase in the number of quality and sustainable jobs and full employment. Other objectives should include the following:
1.3 To achieve these objectives, we should negotiate and campaign at national, regional, industry and company level around the following:
Sources: NUMSA, Social Equity, Economic Policy Conference 1992, September Commission, Labour Job Summit document, Parliamentary submission on industrial policy 1998.
1.1 We need to maximise the impact of those sectors which are job creating. Industries which can serve as an engine for job creation in South Africa must be identified, and such an analysis must extend beyond identifying labour intensive industries. In addition, the down-stream and up-stream linkages (e.g. between companies which supply components to the sector or distribute the product manufactured) must be identified and actively promoted.
1.2 Supply-side incentives should be explicitly linked to job creation. Supply side measures which are currently in place (e.g. those linked to export promotion or technological innovation), should be evaluated and implemented taking into account their employment-generating effects. Punitive supply-side measures can also be introduced, for example tax disincentives to job shedding.
Source: Labour submission to Job Summit
2.1 COSATU remains opposed to EPZs as they downgrade labour standards. We should vigorously oppose attempts by business and government to establish EPZs.
2.2 COSATU in all regions should oppose the attempts by Provincial Governments to have EPZs as part of their economic development agenda.
2.3 COSATU should campaign for any discussions on EPZs to be part of the NEDLAC agenda; provinces should not have the right to form EPZs. Workers, shop stewards and the public should be informed about the dangers of having EPZs.
Source: SACTWU
3.1 With regard to existing investment incentive schemes such as tax holidays and proposed schemes such as the Industrial Development Zones, mechanisms must be put into place to ensure that new investments do not have the effect of displacing the jobs of currently employed people without creating additional jobs. If the effect of these schemes is merely to displace those presently in employment as enterprises are unable to compete with new, subsidised (the effect of not having to pay tax) enterprises, then there will be no positive net job creation, only an unnecessary decline in tax revenue and increased pressure on the budget deficit. In instances where IDZ or spatial development initiatives encourage capital intensive projects, this should only be permitted on the basis of clearly specified projections of up-stream and down-steam job creation and measures to realise these projections. Monitoring mechanisms must be put into place to see to it that these projections are indeed met.
3.2 In engaging those who propagate the concept, the following principles should underpin our engagement:
Source: NUMSA, Parliamentary submission on industrial policy 1998, Labour submission to Job Summit
4.1 Government should provide incentives to SMMEs but not at the expense of workers.
4.2 SMMEs should be used as a tool for collective empowerment instead of self-enrichment.
Source: NUMSA
4.3 To campaign that any special affirmative action for black business must be linked to respect for workers rights.
4.4 COSATU should meet with black business organisations to discuss the implementation of fair and progressive labour practices and policies.
Source: SACTWU
5.1 A process with potential for union influence is the cluster study/development process co-ordinated by DTI, NEDLAC, DBSA, and IDC.
5.2 Cluster studies should be needs driven and linked to RDP initiatives, for example, housing delivery programme (finished product determine the establishment of clusters).
5.3 We reject the notion of export-driven studies. [NUMSA to clarify]
5.4 A ll affiliates must make it a priority to participate proactively in this process.
5.5 Our participation in the cluster studies should be to defend the interest of workers, particularly changes to work organisation.
5.6 Affiliates in a sector should meet with the head of the DTI sectoral bureau for that sector, to discuss plans and processes for sectoral industrial strategy.
5.7 Through such involvement, the industrial policy team can start to think about an ‘industry plan' for its sectors or sub-sectors.
5.8 Such an industry plan should include a component on a strategic trade policy (including appropriate tariff policies) to foster sectoral growth.
5.9 COSATU should secure funding (from IDC, DTI, Fund for Research into Industrial Development, Growth, and Equity (FRIDGE)) for training and capacity building for union representatives participating in these structures.
5.10 COSATU and affiliates should develop report-back and mandating mechanisms throughout these processes.
Sources: September Commission, NUMSA
6.1 The high price of raw materials is a major restriction on the ability of higher value added industries to become internationally competitive, e.g. Iscor's steel.
6.2 Government can change this both through its ownership (through IDC) and policy approaches such as:
6.3 Infrastructure development will have a major positive impact on both basic living conditions and foreign exchange earning industries, particularly tourism.
6.4 Government's interventions should be biased towards meeting of the basic needs of our people.
Source: NUMSA
7.1 An industrial policy must have a local content provision in the final product.
7.2 We reject the current relaxation of local content provision as it has led to the collapse of the white goods sector and the envisaged telecommunications agreement with American Technology and Telecommunications (AT&T).
Source: NUMSA
8.1.1 An Investment Code should be implemented which requires prospective investors to:
8.1.2 Employment creation:
8.1.3 Equality of Opportunity and Treatment:
8.1.4 Security of Employment:
8.1.5 Adult Basic Education and Training (ABET):
8.1.6 Occupational and Environmental Health and Safety:
Companies must agree to:
- Maintain the highest standards.
- Negotiate health, safety and environment agreements with the trade unions.
- Permit no dumping of toxic waste.
- Implement an environmentally sustainable development policy.
- Take responsibility for environmental damage to the community.
8.1.7 Science and Technology:
Companies must agree to:
- Permit rapid diffusion of technologies.
- Grant technology licences on reasonable terms and conditions.
- Run training programmes to keep employees and the community abreast of technological developments.
- Negotiate science and technology policy with trade unions.
8.1.8 Conditions of Work and Life:
8.1.9 Worker and Union Rights:
8.1.10 Companies must agree to:
8.1.11 Corporate Social Responsibility:
8.1.12 Disinvestment and relocation:
Sources: NUMSA and Economic Policy Conference 1992
8.2.1 Some key policies which can boost productive investment and encourage employment creation are:
Source: Labour Job Summit document, NUMSA, Parliamentary submission on industrial policy 1998, September Commission.
8.3.1 The Multilateral Agreement on Investments (MAI), which originated in the Organisation of Economic Development (OECD) and may soon be part of the agenda of the World Trade Organisation (WTO), is designed to further strengthen the power of transnational corporations throughout the world. It poses a grave threat to the ability of nation-states to serve their citizens, and can further relegate the status of developing countries to that of "wholly owned subsidiaries" of the TNCs.
8.3.2 MAI represents a single most serious threat to the sovereignty of independent nations. Its provisions amount to an international bill of rights for multinational corporations.
8.3.3 COSATU should join the growing international campaign against the MAI
8.3.4 Government should be urged to use its upcoming chairpersonship of the Non-Aligned Movement (NAM) to mobilise further opposition to the MAI, and to support the view that an entirely new investor agreement be negotiated, with full participation from developing countries and civil society.
Source: Resolutions Committee
8.4.1 Job creation should be the primary mandate of the IDC.
8.4.2 The IDC needs to be re-oriented from its focus on capital intensive mega-projects to incorporate labour intensive projects as well
8.4.3 In addition to the allocation of funds from the investment portfolio of the IDC, the full pre-tax profit of the IDC should be applied to job creation ventures.
8.4.4 Private sector investments in partnership with the IDC should be required to invest in job-creating investments.
Sources: Social Equity, NUMSA
9.1 There is a need for far reaching changes to the corporate structure in South Africa.
9.2 Competition policy needs to form part of a broader industrial strategy.
9.3 Competition Policy should be informed by the following objectives:
9.4 Any competition policy should not lead to job losses, down-grading of labour standards and deterioration of social welfare.
9.5 We support the forced unbundling of apartheid-era conglomerates where this is in the public interest on the basis of their over-concentration of particular markets. Further the potential should exist for forced divestiture to be triggered as soon as large firms abuse their dominance.
9.6 We support the inclusion of a regulated Ministerial discretion in regulating mergers in the public interest in order to avoid job loss and to protect domestic industry from predatory activity by Multi National Corporations operating in the global economy.
Sources: Social Equity, NUMSA, Labour submission on Competition Policy, April 1998 CEC
10.1 State Procurement Policy needs to comply with the following conditions:
10.2 A Workers Rights Index should be developed, and companies tendering for public contracts should be required to report on compliance with the standards in the index. These standards should include the following core areas:
10.3 The WTO is currently discussing neutralising these procedures as instruments for fostering domestic industry. The government should remain a non-signatory to the WTO's Procurement Policy so as to avoid parastatals e.g. Eskom, Telkom, purchasing equipment abroad.
10.4 COSATU should lobby government to take a stronger stand against the WTO Procurement Policy at WTO debates. The government should ensure that there is tighter coordination on these matters with the third world countries (developing and underdeveloped) to build a uniform stance against these unfair provisions pushed by some of the powerful developed countries.
10.5 The government should also reject the OECD's proposed Multi-lateral Agreement on Investment (MAI) so as to encourage expansion of domestic production and to avoid obligations where government and parastatals will be required to purchase equipment from abroad. Further, on the basis of procurement policies and in the furtherance of other objectives, government should campaign against the proposed MAI and the proposed US Growth and Opportunity Bill in line with a policy of working towards a transformed WTO and other multi-lateral global institutions.
Sources: NUMSA, Social Equity, September Commission, Parliamentary submission on industrial policy 1998.
11.1 Tariff reduction without supporting policies in affected sectors leads to job losses.
11.2 An immediate moratorium on any further reductions should be imposed, particularly for those sectors that are geared towards the support of the RDP.
11.3 Tariffs should not be reduced at a rate faster than that required by our obligations to the World Trade Organisation; We object to government's tariff reduction faster than its own obligations in terms of GATT.
11.4 Where South Africa has lowered individual tariff rates to below GATT commitments and these have resulted in job losses, these must be increased up to the GATT binding rate.
11.5 Tariff reduction should be preceded by active industrial policies to promote competitiveness;
11.6 An audit of the effects of tariff reductions on particular sectors or industries must be carried out under a tripartite forum funded by the IDC. This forum would also make proposals to renegotiate the agreement with the WTO as well as assess the impacts of foreign policy on trade agreements.
11.7 The Social Plan with its social adjustment packages should be implemented at sectoral level, especially in those industries facing tariff reductions and downscaling. Concrete social adjustment programmes to transfer workers into new jobs must be introduced if tariff reduction leads to retrenchments;
11.8 Government should use tariffs strategically, reducing them to improve competitiveness, but also increasing them to protect jobs and promote industrial development.
Sources: NUMSA, Social Equity, Labour submission to Job Summit
12.1 We are experiencing job losses through illegal goods entering our markets and the dumping of goods on our markets.
12.2 Customs and excise institutions are still managed by corrupt officials from the old guard. They need to be reformed, including:
12.2.1 Changes to reflect the population and conform to the needs of our economy.
12.2.2 Increasing the resources at ports of entry, computerising all ports of entry, and ensuring that information is provided on a timely basis;
12.2.3 Establishing the norm of a minimum of 5% of all consignments being checked and specifically applying this target to each employment-sensitive sector;
12.2.4 Providing for product-dedicated ports of entry;
12.2.5 Beefing up the invoice analysis auditing programme;
12.2.6 Providing effective control over exports of goods subject to incentives;
12.2.7 Setting up resourced border posts with the BLNS (Botswana, Lesotho, Namibia, Swaziland) countries;
12.2.8 Increasing the number of inspectorate posts and the rate of container inspections;
12.2.9 Increasing the quantum and flexibility of remuneration packages for technically skilled customs staff;
12.2.10 Rotating customs staff between different posts;
12.2.11 Utilising private sector technical assistance for customs related activities;
12.2.12 Increasing and publicising rewards for information leading to successful prosecutions;
12.2.13 Raiding the warehouses of suspects and publicising the names of companies found guilty of fraudulent customs and clearance transactions;
12.2.14 The replacement of corrupt officials and a monitoring structure with labour representatives must be established;
12.2.15 Structures in government e.g. Board of Tariffs and Trade must be strengthened to ensure proper monitoring of dumping and reporting to the WTO to ensure that it does not take place.
Sources: NUMSA, SACTWU, Social Equity
13.1 An active trade policy should specifically target incentives, and supply-side measures, e.g. skills training to those industries that create jobs directly, or either up-or-down stream of the targeted industry.
13.2 Both import substitution and export promotion should be pursued. Production for the export market tends to be less labour intensive and therefore creates fewer jobs than production for the domestic market. Import substitution will also stimulate the domestic production of intermediate (inputs used in the production of final goods) and capital goods (machinery) which will also have large employment effects.
13.3 Expansion through import-substitution operates through reducing the propensity to import, reducing leakages from the domestic economy. The objective of such an expansion in an underemployed economy is to reduce the propensity to import competitive goods. Specific strategic sectors must be targeted for a concerted programme of import substitution. The chief criterion in selecting these sectors must be their ability to generate sustainable employment.
13.4 Any anti-import substitution bias which may be prevalent in existing industrial policy measures should be worked out of the system. In addition to encouraging domestic production and expanding the domestic market as more people are drawn into employment, a carefully managed import substitution strategy can have the benefit of improving the balance of trade and taking pressure off the balance of payments.
13.5 Unfairly subsidised imports into South Africa should be stopped. We should make increased usage of anti-dumping and safeguard duties. It is crucial that safeguard duties take national interests into account. Job losses resulting from a sudden increases in imports should be prioritised when implementing safeguard duties to protect the domestic industry.
13.6 Rules of origin provisions should be implemented. In the event of SADC becoming a free trade area, which would allow for the free movement of goods across boarders, one way to protect South African industries and develop the economies of SADC countries would be the impose rules of origin. This would mean that countries have to prove that the goods they are exporting consist of, for example, 25%, 50% etc. of domestic production.
13.7 A social clause should be implemented. This would serve to discourage countries from competing on the basis of labour repression, exploitation and poor or non-existent health and safety standards. A number of SADC countries are already using such strategies to improve competitiveness. Malawi, Mauritius, Mozambique, Namibia and Zimbabwe already host or are in the process of establishing EPZs.
13.8 It should be a mandatory pre-requisite that 'employment impact assessments' should be carried out and published before South Africa can bind itself to any trade agreements.
13.9 We seek representation for the trade union movement in the international trade negotiations, including direct representation of labour on the negotiating committees concluding bilateral and multilateral trade deals.
13.10 Parliament should be given an effective overseeing role on trade negotiations.
Sources: Parliamentary submission on industrial policy 1998, Social Equity, Labour submission to Job Summit
14.1 Growth in South Africa without growth in Southern Africa would be counter productive to all. The poverty in the surrounding countries would rapidly undermine progress in SA whilst at the same time denying our economy a viable market closest to its borders. South Africa's economy and particularly its labour market are impossible to separate from the Southern African region. South Africa enjoys a substantial trade surplus with the SADC and SACU countries. If such a trend continues we are likely to destroy the regions' industries. This will be to the detriment of our own industries as they will no longer be able to pay for South African imports.
14.2 In developing sectoral industry policies we should be conscious of the potential for co-operative development, particularly in those industries that our cost structure cannot sustain. Japan's use of its Asian neighbours represents a useful, if not always savoury, model of this process. For COSATU this means a greater emphasis on our international activity in our region.
14.3 A regional reconstruction and development plan for southern Africa must be developed through a regional summit of governments and trade unions.
14.4 The South African government needs to initiate a process to negotiate a set of minimum standards to be established across the whole region. COSATU should support the struggle for decent labour standards in all countries in the region.
14.5 To achieve general growth and development for the whole sub-continent requires mutually beneficial agreements to be reached between the countries concerned. Such co-operation should be underpinned by solidarity between trade unions in the sub-continent.
14.6 COSATU should propose a Regional Development Bank.
14.7 South Africa needs to play an active part in the development of the Southern African economies through the collective action of public enterprises (e.g. transport, utilities) to increase regional economic growth. COSATU should support a programme of infrastructural development projects, especially those which link two or more countries of the region, such as the Maputo corridor, based on clearly defined criteria.
14.8 A regional trade union solidarity fund, with R20 million a year made available by government for programmes by the labour movement in the region should be set up.
14.9 COSATU affiliates should establish firm links with their counterpart unions in the region, with the aim of analysing the problems in their sectors and developing ideas about how their industries could be developed in a mutually beneficial way across countries. Affiliates should establish cross-regional company shop steward councils to build solidarity. COSATU should also assist unions in the region to develop their organisational, research and educational capacities.
Sources: NUMSA, Economic Policy Conference 1992, Social Equity, September Commission
15.1 COSATU needs to develop a consistent strategy in relation to the IDC, the DBSA, NPI, the Land Bank and NOSA. The federation should initiate discussions with the relevant ministries (Trade and Industry, Finance, Labour, Agriculture) and the institutions themselves about their restructuring (or in the case of NPI and NOSA, their possible closure) and labour representation on their boards.
15.2 The IDC Board should be restructured and contain nominees from labour.
15.3 The Board of the IDC should be required to publicly report on a six monthly basis on the impact on employment, and the net number of direct jobs created, by its investment and technical assistance policies.
15.4 The resourcing of the IDC and DBSA should be guided by their success in fostering labour intensity and employment creation.
15.5 The Board of Directors of the DBSA should include trade union representatives, particularly municipal trade unions such as SAMWU.
15.6 Researchers should be seconded to the DBSA, joint projects could be explored and the DBSA should be accountable to NEDLAC as well as parliament.
15.7 CSIR resources as well as public funding for research and development should be directed to labour-absorbing sectors and processes.
15.8 The state tender board needs to be restructured and an immediate commission of enquiry to investigate contracts that have been awarded. If any government employee is found to be guilty of colluding with parties to get the tender, she/he should be criminally charged. Laws should be passed to enable this to take place.
15.9 Representation in the provincial tender boards should be based on the same model used in the national State Tender Board.
Sources: September Commission
16.1 COSATU must develop greater capacity to co-ordinate policy formation and engagement on industrial development issues. COSATU should concentrate on co-ordinating and building the NEDLAC team in the trade and industry chamber and the parliamentary office's interventions on industrial policy issues, as well as supporting affiliates which are engaged in specific Campaigns over industrial development issues.
16.2 Resources must be made available at NEDLAC to develop the capacity of labour to engage more effectively in industrial policy development in the Trade and Industry Chamber, including through the employment of labour researchers in this area.
16.3 Every affiliate should establish its own industrial policy department or team, to develop industrial policy, participate in COSATU industrial policy processes, and engage with employers, NEDLAC and government. COSATU and affiliates should develop industrial policy teams to drive the development of policy in each sector. This would require demarcation of various sectors, and co-operation between relevant affiliates, e.g. in the energy sector. These sectoral teams should cover industrial development both in the public and private sectors.
16.4 NALEDI should establish an industrial development research capacity. This could provide research and policy support to COSATU and affiliates. In addition, we recommend that NALEDI convene an industrial policy reference group consisting of trade unionists – from affiliates and COSATU involved in industrial policy, to collectively develop strategies and Guide research. COSATU should consider a longer-term research project, housed in NALEDI, to assess industrial development strategies, based on an evaluation of international comparative experience, with a view to developing a vision for long-term industrial development in South Africa.
Sources: September Commission
17.1 COSATU rejects the White Paper on sea fisheries policy produced by the Department of Environment Affairs.
17.2 COSATU will work with the Alliance and international bodies, in particular the International Transport Federation, in developing a progressive policy that will address the RDP principles and recommendations raised by the International Development Research Centre.
17.3 COSATU accepts the critique discussion document produced by FAWU as the framework document to develop its submission to government's White Papers on the fisheries.
17.4 Amnesty should be addressed as matter of priority even before the finalisation of the debates on the White Paper.
17.5 The following should be our programme of action:
17.6 A meeting of the Alliance to reach consensus on a common vision, policy and a way forward.
17.7 Develop a comprehensive fisheries policy.
17.8 Engage Minister Pallo Jordan, the ANC study group and the parliamentary committee on the policy.
Source: FAWU
18.1 COSATU should establish a task-team to develop a food security policy proposal that is in line with the broad principles as contained in the RDP and in line with the vision of "a better life for all".
18.2 This food security policy proposal shall contain as its other central theme the establishment of a social security net that ensures that no one goes hungry and will revive schemes such as school feeding schemes.
18.3 That the living wage demand and campaign serve as the basis for an approach to food security issues that will ensure that the buying power of disposable/real wage on food products is increased.
18.4 Legislation should be put in place to ensure that companies are forced to donate perishable and other food items instead of dumping these as part of their strategy to restore the price of these products.
18.5 COSATU should meaningfully engage the Tripartite Alliance and attempt to secure an Alliance policy position on food security. COSATU should also engage other organs of civil society that broadly belong to the democratic movement.
18.6 COSATU should embark on a campaign (in line with the World Food Summit in Rome) to mobilise broad social support in forcing the government to take into account policy proposals before the ultimate cabinet approval of food security policy which must address poverty.
Source: FAWU
Energy sector policy should complement overall industrial and development policy. In particular, the role and structure of Eskom should be tailored to advancing the aim of universal access to affordable electricity both for households and industry. In order to advance this aim legislation should clearly outline that Eskom is owned and controlled by the state and that in its external and internal programmes Eskom should be accountable to government's broader RDP objectives.
Policy proposals
Technology and technological innovation that does not displace labour or inhibit job creation requires technology policy that is informed by the following objectives :
To ensure job creation and maintenance unions have to engage with technology at the level of policy development. This includes :
Source: Labour proposals on Jobs Summit
We believe that Labour Market Policy should:
1.1 Redress the legacy of labour market segmentation and discrimination based on gender, race and age, with the aim of improved quality and security of present jobs, and equal access to new jobs.
1.2 Facilitate workplace democracy through enhanced worker control over decision-making.
1.3 Close the apartheid wage gap.
1.4 Train and develop the workforce.
1.5 Through NEDLAC guide the impact of Public Works Programmes to ensure training in communities and job creation.
1.6 Create decent and sustainable jobs for all at a living wage and train workers to be more productive.
The legacy of the apartheid era has produced a set of labour market institutions which have fundamental weaknesses. The two most severe problems are:
2.1 The supposed need for greater labour market flexibility is based on a presumption that the labour market actually suffers from inflexibilities with respect to wages and employment.
2.2 In fact, the labour market, as it currently exists, is remarkably flexible in terms of wages and employment as demonstrated by the International Labour Organisation (ILO) study of the South African labour market. The amount of institutional protection workers have in South Africa is very small; retrenchments are not difficult; there is an increasing trend towards casual and atypical employment; and most wages are determined at plant or enterprise level.
3.1 It is evident from the available data that both low wages and unemployment contribute to poverty in South Africa. The poor in South Africa consist of both the unemployed poor and the working poor.
3.2 Policies aimed at reforming the labour market and creating new job opportunities must take this dual source of poverty into account. Jobs must be created and economic opportunities expanded. Wage flexibility as a means of poverty alleviation – and particularly if new jobs are seen as the central mechanism of redistribution – simply means exchanging one source of poverty (low wages) for another (unemployment).
3.3 Creating new employment opportunities along with higher wages requires a long-run strategy and depends on the successful accumulation of productive investment in sectors of the economy which produce jobs, and on the structural transformation of the apartheid-era labour market.
4.1 We are confronted with arguments everyday - in workplaces and in the media - that workers' productivity needs to increase in order for our industries to become competitive. In fact, labour productivity has been rising and unit labour costs have been declining since 1992.
4.2 Strong union presence, worker rights and labour standards compel management to seek productivity improvement through increasing management effectiveness, innovation, increased investment in training and skills and worker participation.
4.3 Our view is supported by the ILO's argument for the importance of ‘'dynamic efficiency''. For example, where there are few costs or limitations on management use of overtime, there is little incentive for managers to engage in serious forward planning and production scheduling, or to make efficient use of available people. We reject strategies for improving competitiveness through undermining worker rights and labour standards, fragmenting the labour market or reducing wages.
4.4 Workers and trade unions cannot be held to be the chief obstacles to productivity improvement. It is management, government (through the supply of services, infrastructure and industrial policy), and low capacity utilisation which are responsible for most productivity problems which exist. We believe that increasing the competitiveness of the South African economy requires a strategic approach to entering rapidly changing world markets; public investment in cheap and efficient infrastructure, communities, people and skills; and a comprehensive restructuring of the management structure and how production is organised.
4.5 At a broader level, a different approach to promoting productivity as part of a broader strategy of redistribution and employment creation is clearly required. Labour has proposed (in ‘Social Equity') the need to negotiate a National Productivity Framework in order to achieve this objective.
5.1 A defining characteristic of incomes in South Africa is the wage gap between blue collar and low-paid workers on the one hand; and management and high-paid employees on the other. The gap between the salaries of management and other highly-paid staff, and the wages of the bulk of union members, is extremely high by world standards. This is the legacy of the apartheid wage structure.
5.2 Labour costs include the total wage bill, including the remuneration of management. Managerial, professional, supervisory and skilled positions account for some 45% of the wage bill, although they constitute only 23% of the total workforce in manufacturing.
5.3 Supporting evidence for the high cost of management in South Africa is provided by the 1996 World Competitiveness Report. South Africa is ranked 41 out of 49 countries in terms of management efficiency, but 6th in terms of the remuneration of top management. The high cost of South African managers is very clear when it is contrasted with the low productivity of the enterprises they manage.
5.4 A significant reduction of the management wage bill would contribute substantially to the reduction of labour costs. However, the management/worker ratio is increasing. Management functions should be devolved to the shopfloor, and a portion of management salaries that are saved should be redistributed to shopfloor workers.
5.5 There is no evidence that wage increases won by union members are the main source of inflation. To the extent that rising incomes generate inflationary pressure, this can as plausibly be explained by high and rising management incomes. Redistributing part of these incomes to workers will tend to increase demand for local goods and reduce poverty.
5.6 The above arguments makes it clear we see no reason for unions to moderate their wage demands or accept higher levels of wage flexibility. Indeed, union demands should stimulate management to seek ways to reduce the cost of management and improve production processes.
5.7. Union wage policies should be based on the following:
5.7.1 Increases in basic wages should not be linked to productivity increases since the major portion of productivity improvements are the responsibility of management. At the same time, as producers and stakeholders, workers should share the benefits of productivity improvement, either through wage increases or through gain-sharing agreements. The trade union movement should pursue a strategy of wage solidarity which seeks to increase most the wages of the lowest paid. Unions should oppose "labour market flexibility" which seeks to increase wage flexibility (e.g. undermining centralised bargaining, increasing casualisation). Centralised bargaining should be strengthened.
5.7.2 Critics will argue that these wage policies contradict the industrial development strategy of focusing on labour-intensive industry where wages are lower than in capital-intensive industry. However, there are already large labour-intensive sectors in South Africa where wages - whether set at company level or through centralised bargaining - are relatively low. Such wage levels cannot act as a deterrent to new labour-intensive investment. New companies will either fall within the scope of bargaining councils that already cover labour-intensive industry, or wages will be set through company-level negotiations. In either case, the unions will seek to organise their members and bargain for improved wages and conditions.
5.7.3 We reject the government's and business' proposals on Labour Market Policy as they advance:
5.7.3.1 The lowering of labour standards
5.7.3.2 Job losses
5.7.3.4 Flexibility
5.7.3.5 Wage moderation
Source: September Commission and NUMSA
1.1 COSATU should launch a campaign to close the apartheid wage gap to a ratio of at least 1:8 over an agreed period. This should include a framework which sets targets for wage equity in the private and public sectors.
1.2 The Employment Equity Act should be broadened to include mechanisms for monitoring of the closing of the wage gap in each company, and between all levels of the workforce including top management.
1.3 The top 58 companies should publicly agree to release information on the pay of their individual executive directors, particularly their CEO's. This should include salary or director's fees, pension, bonus, perquisites and share options. Information on the minimum wage payable to workers in their companies should also be made available.
1.4 Further, the top 58 companies should commit themselves to reducing the wage gap (including all fringe benefits and options) in the companies to no more than 1:8. This means that the earnings of the highest paid person should not be more than eight times that of the lowest paid person. Even such a wage gap will be unacceptably high but would constitute an important first step in our country towards a shared future.
Source: COSATU Policy Conference May 1997, Social Equity
2.1 Outsourcing should not downgrade conditions of employment of workers in the same industry.
2.2 The employers should consult unions 6 months prior to outsourcing.
2.3 There should be full disclosure of information.
Source: NUMSA
3.1 Labour brokering should be regulated, and workers in these sectors should enjoy the full rights and benefits of full-time workers.
3.2 Separate national registers of labour brokers and the temporary workers they employ must be established.
3.3 Compliance with existing regulations must be monitored with the assistance of the national registers, including ensuring companies only use such registered labour brokers.
3.4 Unregistered labour brokers should be prosecuted and heavy fines imposed on them.
Source: NUMSA
4.1 The minimum wage is defined as "a regulated monetary wage at national / sectoral level taking into account the cost of living which must be regularly reviewed". It could take the form of a social wage incorporating health care, transport, pensions, etc.
4.2 Wages should be separated from productivity incentives.
4.3 Blanket exemptions should be discouraged and where they apply they must be based on the merits of individual companies. Criteria on exemptions should be developed at the national industry level and be implemented at the sectoral level.
4.4 COSATU should revive the Campaigns Committee and focus on, among others, the strengthening of centralised bargaining, highlighting the Living Wage campaign, and ensure that affiliates develop common demands.
4.5 Government must monitor and punish those who disregard the agreed minimum wages.
4.6 COSATU should campaign for minimum wage settings for the vulnerable and less organised sectors of the economy using bargained wage levels as yardsticks. This should also take into account the existing inequities, disparities in incomes and the struggle for a living wage.
4.7 COSATU should work towards an increase in the employment of women in all areas of work and especially in higher paid job categories. This requires a conscious attempt to integrate gender aspects in COSATU affiliate wage policies by linking the demand of equal wages for equal work and equal wages for work of equal value to the living wage campaign. This will ensure that affiliates take up the struggle against the oppression and exploitation of women, ensuring that this is not regarded as a "women's" issue but a problem of every member of the union.
Source: Living Wage Conference 1996, NUMSA, Policy Conference May 1997
Option 1:
The minimum living wage must be determined at national industry level.
Source: Living Wage Conference
Option 2:
There should be a national minimum wage.
Source: NUMSA
5.1 All workers should enjoy access to paid training.
5.2 A 4% levy on companies for training must be implemented.
5.3 Consideration should be given to training programmes financed by the government, which address the area of managerial training, particularly in small and medium enterprises.
5.4 Vocational training with emphasis on multi-skilling and broad banding of jobs in a new skills-based grading system should be a key priority.
5.5 This should become a common item in all collective bargaining forums.
5.6 The RPL process must be jointly administered by management and union. Both parties must be trained as RPL assessors.
5.7 RPL must be compulsory for employers, but assessment of employees must be up to the employee concerned.
5.8 No employee must be down-graded as a result of RPL.
5.9 Interviews, demonstrations, written tests and portfolios will be used to assess workers.
5.10 All skills acquired must be paid for, even if they are not being used or applied.
5.11 COSATU and some affiliates have made progress in negotiating a framework for skills, grading, training and wages. In most cases there has been no effort to develop a gender perspective on this. It is important to address this issue or women workers will find themselves once again at the bottom of the heap.
Source: NUMSA, Social Equity, Secretariat Report 1997 Congress, CWIU
6.1 COSATU should campaign for the prohibition of scab labour in legislation.
6.2 Call on the government to put an end to the use of scab labour through:
6.2.1 Requiring companies which tender for government contracts to sign an anti-scab code.
6.2.2 Requiring companies receiving any government incentives, such as export and regional economic development incentives, to sign an anti-scab clause.
6.2.3 Agreeing not to use scab labour in areas of the public sector and parastatals, where workers are striking legally.
6.3 Campaign in all industries for an end to scab labour by putting a demand to employers in all bargaining forums.
6.4 Essential and Maintenance services should be broadly defined so as to minimise the use of scab labour.
6.5 Link any discussion on productivity at plant level with a demand for an end to scab labour.
Source: SACTWU, Living Wage Conference 1996
7.1 Affiliates must fight for provisions that are better than minimum provisions which are reflected in the LRA; and in that regard ensure that they include demands on the following provisions:
7.1.1 The duty to bargain;
7.1.2 The right to strike over individual dismissals;
7.1.3 The right to strike;
7.1.4 Exclude the right to lock-out;
7.1.5 An improved severance package – of no less than four (4) weeks per year of service – for retrenched workers;
7.1.6 When challenging the unfairness of retrenchment, affiliates must demand compensation for the loss of future earnings and personal belongings.
7.2 COSATU must embark on a campaign, through collective bargaining, to fight for the above issues to be agreed by employers in the different industries.
7.3 The Central Committee mandates the EXCO to initiate comprehensive discussion on the closed shop and study its implications at all levels.
7.4 In order to address the problem of free-riders, affiliates should trigger the agency shop as stipulated in the new LRA where unions are in majority.
7.5 COSATU must pursue the fight for the duty to bargain as an amendment to the LRA.
Source: CWIU
7.6.1 We should encourage people sympathetic to labour to staff the CCMA, but at the same time we must not cripple the labour movement.
7.6.2 CCMA Commissioners must not include company industrial consultants – whether presently practising or not.
7.7.1 The committee that will deal with the essential services must have a working class bias.
7.8.1 A definition of small, medium and micro enterprises needs to be developed at national level as a framework to guide sectoral debates. Such definition should take into account issues such as turn-over, numbers of people employed, etc.
8.1 All existing recognition agreements must be reviewed in line with the minimum conditions as specified in the new LRA.
8.2 COSATU should assist in this process.
Source: COSATU Living Wage Conference and CWIU
1. The Act needs to make the same provisions, which prohibits attorney from presenting parties at CCMA arbitration where the issue in dispute is dismissals for misconduct, directly applicable to Bargaining Councils.
Motivation:
Currently the Act permits Bargaining Councils the right to determine who may represent parties in these arbitration, and formulate their own procedure in their Constitution and dispute procedures.
2. The CCMA must be a tribunal of record and must keep a record of all arbitration proceedings.
Motivation:
The record would be available to the parties to allow the parties to analyse the record and evaluate whether one may confidently review the awards.
3. The Act should make provision for voluntary conciliation under the CCMA after a period of six weeks into any protected strike.
Motivations:
Strikes are costly to both the workers and the employer and protected strikes may not be limited in duration by law. The Act permits the employer to dismiss workers for operational requirements during the course of the strike after consultation. To prevent this situation arising the parties should be permitted access to the CCMA, as an independent body, thereby providing the possibility for an independent party to attempt to settle the dispute.
4. The Act must provide that employees in workplace may embark on a protected strike in support of their demand to establish an agency shop agreement or closed shop agreement
Motivation:
A correct interpretation of the Act is that these are interest disputes and one would be entitled to strike over such an issue, it is nevertheless suggested that the Act is unclear in this regard.
5. The Act should state that trade union officials representing their members at the Labour Court may, upon an order by the Labour Court, recover disbursement from the other party.
Motivation:
The Act does not expressly allow trade union representatives at Labour Court who are officials of a trade union to collect costs or disbursement at the Labour Court. It is unlikely that under the present Act trade union representatives, who are officials of the trade union, may recover any costs.
This is necessary to ensure that the costs involved in representation of our members at the Labour Court is reduced.
6. The Act should make specific provision entitling workers to strike or refer a dispute over unilateral variation of terms and conditions of employment to the Labour Court for adjudication.
6.1 At conciliation the conciliator must order the employer to revert to the status quo ante the variation.
Motivation:
The Act is not clear about how parties may deal with the issue of unilateral variation if the CCMA fails to resolve the matter at conciliation. The fact that the issue is provided for in section 64 of the act (which section deals with strikes) indicates that the parties may strike over the issue. This is not clear however. The CCMA should not have any discretion but to order the employer to revert to the status quo prior to the variation.
7. The Act must provide that after a period of 6 weeks any CCMA or Bargaining Council arbitration award, which was opposed, may be executed as if it is a Labour Court order provided that any party may apply to the Labour Court to set aside or review that award in terms of section 145 on the basis that the CCMA proceedings were defective in that the defect involves corruption.
Motivation:
CCMA awards need to be given some other binding force and to prevent costly and difficult applications to enforce each and every CCMA award
8. The provision in the Act which provide for protected secondary strikes need to be amended to allow for "solidarity strikes". The proposal is set out below:
A secondary strike will be protected if:-
Motivation:
The Act places a severe restriction upon secondary strikes and requires (in terms of section 66 of the Act) that the secondary strike be reasonable in relation to its effect upon the business of the primary employer
Trade unions are and will continue to be frustrated by the onerous requirements of "secondary strikes" which hinder the use of secondary strikes to defend and advance worker interests in our less organised sectors,
The Labour Laws of Spain, Italy and France have moved some way towards recognising the legitimacy of sympathetic solidarity strikes.
9.1 The Basic Conditions of Employment Act has many provisions that will affect women workers negatively such as:
9.1.1 Downward Variation which will allow companies to attack maternity and child care rights.
9.1.2 Responsibility leave is only three days and includes compassionate leave and excludes casuals.
9.1.3 It provides for sick leave to be reduced to 75% in exchange for an unpaid day off.
9.1.4 Companies will use these provisions by reducing sick leave and maternity leave.
9.1.5 COSATU must reject the variation model of the BCEA and campaign for all rights to be extended to casual and temporary workers.
Source: CWIU
10.1 Unions must intensify collective bargaining as a means of redistributing incomes and benefits.
10.2 COSATU must establish a collective bargaining department and work on actively co-ordinating the collective bargaining demands and campaigns of affiliates. The Federation needs to play a central role in the co-ordination and development of collective bargaining strategies in support of the living wage campaign including the relationship between issues at enterprise, industry and NEDLAC level.
10.3 COSATU and affiliates should use their collective bargaining power as a tool to bring about changes for all women and to overcome unevenness in the federation with regards to bargaining victories. The Federation should be empowered to co-ordinate and, where necessary, engage in collective bargaining issues.
10.4 Coordination will include collecting data, formulating core demands, mass mobilisation, etc. Issues that cut across sectors will be dealt with by the federation in negotiations with a national employers organisation. While these negotiations will be led by the NOBs, in reality it will be affiliates who are negotiating. The COSATU team should therefore include Presidents and General Secretaries of affiliates. No single affiliate can deal with issues such as the social wage on its own.
10.5 COSATU needs to co-ordinate collective bargaining with a clear agenda that would include, amongst others: enforcement on paid time off, parental leave, compulsory transport provided by employers when working overtime, skills training and training levies, equal pay and childcare facilities. Appropriate forums need to be identified where these issues can be placed on the bargaining table, either at plant level, national level, NEDLAC and / or legislation.
10.6 All affiliates should establish collective bargaining departments with a research capacity.
10.7 Affiliates that have not yet developed a coherent wage policy for increasing the wages of their lowest-paid members should do so. The first step is to research the wage structure in the industries organised by the union, and on this basis to develop strategies for wage solidarity.
11.1 The new conditions require that we seize the opportunity to introduce a new bargaining framework which will combine the three levels of bargaining into a coherent approach. This entails negotiations of the wage agreements at the following levels:
11.1.1 Macro: The basic percentage increase in labour cost in the economy for a twelve month period, together with targets on monetary policy, investment, trade reform and fiscal policy parameters.
11.1.2 Sectoral: The division of the basic wage cost increase into the wage package such as wages, hours of work, retirement funding, etc.
11.1.3 Workplace: Productivity increases based on workplace restructuring.
11.2 If the above is agreed to, we propose the following programme for the next 36 months (Negotiations 2001), which should be implemented in three phases:
Sources: September Commission, Policy Conference May 1997 and Secretariat Report 1997 NC – note dates revised
12.1 There is a need for extensive challenge of the sexual division of labour and stereotypes that limit women's access to certain positions.
12.2 There is a need to encourage employment of women in our sectors and abolish gender bias in promotion and recruitment procedures (e.g. bias in advertisements).
12.3 Employers should implement affirmative action programmes to redress the sexual division of labour by employing females in typical male jobs.
12.4 Education and training in companies should target women and ABET should be run during working hours with paid education leave.
12.5 Affiliates should demand representation on company recruitment and promotion committees to ensure that such affirmative action is taken into account by employers.
12.6 Workplace affirmative action is not sufficient to substantially alter women's place in the labour market. Only broader access to education, skills and career paths will do this. COSATU and affiliates should draw up a programme of negotiation at bargaining council level, in industry training boards and with training institutions, for increased industry-wide access for women to all training institutions and careers, and affirmative action for women applicants to industry training programmes and institutions.
12.7 COSATU should commission NALEDI to conduct research into the position of women in the workplace and in the labour market to inform and implement affirmative action strategies.
12.8 Legislation on affirmative action should prescribe the quota's / demographics and should have penalties on companies that do not comply.
Source: NUMSA, SARHWU, September Commission
12.9 Job-creation schemes should prioritise the employment of women.
12.10 The state and employers should assist with the establishment of childcare facilities to facilitate the full participation of women in the workplace and ensure parental rights agreements.
12.11 Labour market discrimination begins before women actually enter the labour market, in the family and at school. COSATU could encourage members to help their children think beyond "traditional" gender roles in the labour market. SADTU should encourage its members to challenge the way schools discriminate against female students, and to encourage their students' not to be constrained by gender expectations in their choices of subjects and careers.
12.12 Support implementation of CEDAW, Beijing Platform of Action and the Women's Charter for effective equality.
12.13 Participate in the process towards the formation of a movement for the emancipation of women.
12.14 Sexual harassment must be outlawed.
12.15 The NEDLAC adopted code on sexual harassment to be attached to the LRA must be widely circulated to members. Members should be educated on the content of the code. Affiliates should put in place effective mechanisms to help women workers to use the provisions of the code.
Source: NUMSA, Living Wage Conference 1996
13.1 Workers continue to have differential rights in health and safety. While all workers other than miners are covered by the Occupational Health and Safety Act (OHSA), inadequate implementation and enforcement of the Act limits the benefits to many of these workers (e.g. contract workers, fishing, forestry and agricultural workers).
13.2 This would require a radical overhaul of the legislation as was suggested at COSATU's HSE Conference:
13.2.1 The new Mines Health and Safety Act integrated collective bargaining and health and safety. The new LRA gives trade union representatives the right to monitor an employer's compliance with legislation concerning terms and conditions of employment which would include health and safety and compensation laws. Unions must utilise this right with regard to health and safety.
13.2.2 COSATU must be represented in all forums dealing with health, safety and environment. This must include improved rights for representatives, such as full-time safety stewards.
13.3 Restructure and improve Compensation of Occupational Injuries & Diseases Act (COIDA) and the Occupational Health and Safety Act and other HSE legislation (e.g. Occupational Diseases Mines and Works Act); This should include:
13.3.1 Development of guidelines, codes of practice on safety committee, training, workplace healthcare, risk assessment etc,
13.3.2 Extension of compensation to cover all workers,
13.3.3 Revision of formulae for compensation levels,
13.3.4 Improvement of basic rights of workers and unions,
13.3.5 Streamlining of the inquiry system,
13.3.6 Enforcement of legislation,
13.3.7 Single Legislation on Health & Safety across industries and single co-ordination at ministerial level.
13.3.8 Ratification and adherence of legislation in line with ILO conventions, FAO, UN environment programme, BAMAKO convention.
13.4 The basis of the compensation system is the trade-off between a worker's right to compensation for work-related injuries and illness, irrespective of fault, against their forfeiting this right to sue the employer for damages in the civil courts. However this removal of a worker's right to civil actions should now be viewed against the new Constitution. The bar on civil actions would not violate the Constitution, provided that the range and level of statutory compensation benefits as a whole are comparable to those that workers would be entitled to under the civil law. COSATU must ensure that the benefits received by workers are indeed comparable.
13.5 Accidents and disease remain under-reported. Workers remain unaware of their rights under the Act. Workers and trade unions must report accidents and submit compensation claims.
13.6 Despite COSATU's position that benefits need to be increased, this has not been achieved. Changes need to be made to the manner in which permanent disability is calculated. The present system has not been changed since 1941. The committee of inquiry set up to investigate the formation of a national health and safety council found that ‘it is less generous in its assessment of disability than .... private insurers and pension funds'. Loss of earning capacity or employment are not considered. There is no payment for pain and suffering.
13.7 COSATU should target the month of October in each year for a focused campaign on issues related to health, safety, environment and aid. The main purpose of the campaign should be to highlight issues related to this section of the resolution.
Source: Secretariat report to the 1997 Congress Health, Safety & Environment Conference 1995, NUMSA
13.8 There must be full disclosure of information (right to know) from all sources (management, government, etc).
13.9 Doctors and experts must report occupational diseases to unions and safety committee – not only to management and chief inspectors.
13.10 Medical and environment surveillance programs, the process and people who carry it out must be acceptable to workers as well as management.
13.11 Rights to refuse unsafe and unhealthy work must be strengthened in the Act (and procedures to be developed).
13.12 There must be joint agreement by unions and management on the employment of experts before and when accidents are to be investigated, i.e. the right to independent experts.
13.13T here must be automatic prosecutions and heavier penalties for negligence by bosses. Investigate and improve enforcement, administrative sanctions, and penalties under COIDA. Additional Compensation should not depend on workers lodging claims, and an inspectorate should be instituted if negligence is established.
13.14 There must be job security, retraining and re-deployment of workers with permanent disabilities.
13.15 Establish rehabilitation centres throughout the country.
13.16 Rebates of bosses from compensation fund must be channelled to the rehabilitation programme.
13.17 COSATU must work towards the restructuring and reorientation of NOSA.
13.18 Carry out training and employment of more inspectors.
14.1 COSATU must develop a broad policy on the environment and commission research on:
14.1.1 Coastal management policy
14.1.2 Marine policy
14.1.3 Forestry policy
14.1.4 Pollution control measures (include, radiation)
14.1.5 Zoning
14.1.6 Recycling policy
14.1.7 Mining dumps
14.1.8 Toxic waste
14.2 Develop national standards for a code on investment.
14.3 Industries/companies must be responsible for the products they make from the manufacturing stage until they become harmless ("cradle to grave" principle).
14.4 The principle of "polluter pays" must be adopted.
14.5 COSATU affiliates must expose and resist dumping of toxic waste.
14.6 COSATU must challenge abuse of recycling principles by companies.
14.7 Start and intensify environmental awareness at schools, churches, workplaces and in the community at large.
14.8 Direct the cleaning campaign towards employment creation through the recycling of materials like paper, tins, aluminium, steel, iron, copper, etc.
14.9 Youth and women, in particular, as they form a higher percentage of the unemployed, should be fully trained to play an important role in the recycling process.
14.10 Our training and education institutions should promote the recycling process as an important light industry.
14.11 Government should provide financial assistance towards the establishment of the light industry.
15.1 There is a dire need for education on AIDS awareness, including:
15.1.1 What is it?
15.1.2 How is it transmitted?
15.1.3 How to avoid it?
15.1.4 Consequences thereof?
15.2 Government should intensify its AIDS awareness programmes.
15.3 Unions must embark on a campaign to compliment government's initiatives.
15.4 There must be time off for education programmes.
15.5 Existing resources of NGOs must be used.
15.6 Government must provide funds and resources.
15.7 There must be joint programmes between management and shop stewards or workers.
15.8 Unions must campaign for insurance companies to fund education programmes on HIV and AIDS.
15.9 Organise sex education for all.
15.10 Hold consultative meetings with stakeholders on education programmes in schools.
15.11 ABET centres must be used to disseminate information.
15.12 Government should subsidise the costs of medicines to assist the poor.
15.13 Research must be intensified for an AIDS cure.
15.14 There should be not discrimination against people/workers who have contracted AIDS.
15.15 There should not be AIDS tests for purposes of employment.
15.16 Proper provisions relating to core schemes, medical aid, provident fund and insurance schemes to take care of AIDS sufferers must be established.
15.17 Campaign against the discrimination and loss of benefits suffered by HIV workers. This should be negotiated at national level and put to NEDLAC.
15.18 Adopt code of good practice and popularise and implement it. Shop stewards must monitor progress of the resolution taken.
Source: NUMSA and Health, Safety and Environment Conference 1995
16.1 Only people above 15 years of age shall be entitled to work.
16.2 COSATU and the Alliance should campaign for laws to protect and eradicate child labour.
16.3 Child labour in the entertainment industry must be rigorously controlled.
16.4 Heavy penalties should be imposed upon any employers who contravene regulations on child labour.
16.5 COSATU should mobilise funds for the campaigns to highlight the plight of the children.
16.6 COSATU should mobilise/pressurise government to implement ILO Conventions on child labour.
Source: PPWAWU, Living Wage Conference 1996
17.1 COSATU and its members shall vigorously campaign for improved parental rights, which shall include:
17.1.1 A minimum of 6 months employer paid maternity leave (which shall also include adoptive parents). The UIF should not be used for drawing maternity benefits.
17.1.2 A minimum of 5 days paternity leave per annum (which shall include adoptive parents).
17.1.3 A minimum of 20 days paid childcare leave per annum (which shall also include ante and post natal care).
17.1.4 Provision by the employer/state of adequate childcare facilities for the dependent children of working parents.
Source: Living Wage Conference 1996, September Commission
18.1 We need to be productive, but we reject the ideology and proposals for competitiveness.
18.2 We will oppose any attempt to make us compete against our fellow workers.
18.3 Instead of focusing on making different companies competitive, as a union movement we should devise industrial policies that will lead to:
18.3.1 The development of our productive capacities
18.3.2 Job creation.
Source: NUMSA
18.4 A national productivity and equity framework agreement to be negotiated through NEDLAC to cover all industries.
18.5 It should also cover equity issues such as redistribution of productivity benefits and the reorganisation of relations on the shop floor. It should deal with job creation and job security.
18.6 This framework agreement could then be used as the basis, in industry level negotiations, to address concrete targets of productivity improvement.
18.7 The detailed plant level negotiations on the implementation of specific measures to follow should be negotiated between shop steward committees and managers.
18.8 Productivity issues should become a matter for collective bargaining, not consultation.
18.9 All productivity payments must be separate from the base rate.
18.10 All productivity gains must be shared equally. When carrying this out at plant level tax implications must be taken into consideration.
Source: Social Equity, NUMSA
19.1 For many years management has unilaterally restructured our workplaces. But the campaign of restructuring by management has intensified as each company strives for competitiveness.
19.2 We should reject new management and production techniques that do not lead to genuine worker participation and democratisation of the workplace.
19.3 Depending on the company's agenda, unions have or have not been involved in the process.
19.4 Big and wealthy companies have tried to implement their restructuring proposals with the blessing of unions.
19.5 It is high time that as unions we should put forward a programme of workplace democratisation, in line with our ideal of workers control. Affiliates must demand that the following issues should be negotiated with unions:
19.5.1 Strategic business plans
19.5.2 Introduction of new technology
19.5.3 Use of machines and line speed
19.5.4 Plant utilisation and layout
19.5.5 Benchmarks, targets and production schedules
19.5.6 Product development plans
19.5.7 Work organisation and work processes
19.5.8 Quality assurance programmes
19.5.9 Working time and patterns
19.5.10 Company and organisational structure
19.5.11 Investments in human and capital resources
19.5..12 Social responsibility programmes
19.5.13 Training and skills formation
19.5.14 Grading
19.5.15 Person-power planning
19.5.16 Affirmative action programmes
19.5.17 Productivity and performance assessment
19.5.18 Remuneration, bonuses, incentive schemes and wage structure
19.5.19 Wealth sharing schemes and dividends policy
19.6 By demanding that the above be negotiated with unions, we are calling for collective bargaining rights to be extended to the areas highlighted above.
19.7 The union must intervene both at shopfloor level and at a macro-level where industrial and macro-economic policies are being made. The survival of companies depends not only on shopfloor restructuring but also on a vibrant and interventionist industrial policy. For example, on policies on the price of raw materials and government support for industrial development.
19.8 At shopfloor level:
19.8.1 Employers must negotiate with unions on work re-organisation by giving information, and discussing their strategic plans with unions.
19.8.2 COSATU must fight for employment security, job creation and resist lowering of staffing levels through natural attrition.
19.8.3 Wages and bonuses must be separate.
19.8.4 A company must give 6 months notice of the introduction of new technology. This notice period must be before the decision to purchase the machinery has taken place.
19.9 Teamwork is only acceptable if:
19.9.1 The union triggers the teams
19.9.2 Work teams have a real say over targets, line speeds etc.
19.9.3 Team leaders are democratically elected and rotated
19.9.4 Team leaders can't take disciplinary action, this should remain with management
19.9.5 The union can take up production issues
19.9.6 The union can meet with its own members
19.9.7 Participation in teams is voluntary
19.9.8 Shop stewards can address team meetings, and union-related issues can be discussed in green areas/team centres
19.9.10 The team does not have to meet its target if one of its members is absent.
19.10 At central level
There is a need for:
19.10.1 National frameworks on how to deal with the above issues at plant level
19.10.2 Industry-wide model disciplinary code
19.10.3 Industry-wide guidelines for hiring, transfer and promotion
19.10.4 Guidelines on mergers and transfers
19.10.5 Guidelines on partial and total closures.
19.11 That in our fight for the above we must insist on:
19.11.1 The right for the union to be directly involved in the negotiations. In multi-union plants and where management argues that we are not representative, we must opt for joint union structures where unions that are active in the plant will be proportionally represented.
19.11.2 Voluntary dispute resolution mechanisms.
19.11.3 The duty of the employer to disclose information.
Source: NUMSA
19.12 Worker participation in company level decision-making cannot just be crafted onto a managerial structure which actively resists openness, involvement and joint decision-making.
19.13 Commission research on affiliates' factory experiences including the international experience. Such research must be participatory and include shop stewards from the factories concerned.
19.14 Public sector restructuring must be led by the public sector unions.
Source: Social Equity and Policy Conference May 1997
19.15 Dispute resolution mechanisms
19.15.1 Whenever workplace change programmes are negotiated COSATU must insist on dispute resolution mechanisms that will give the space to choose what weapons to use to further COSATU's interests.
19.15.2 Proposals for compulsory arbitration must be rejected. Arbitration must be voluntary and COSATU must reserve its right to take independent action if in dispute on the above issues.
Source: NUMSA
19.16 Workplace forums
Option 1:
Affiliates should put to employers in the next round of negotiations that all issues listed in workplace democracy be subject to negotiations.
Source NUMSA, CWIU
Option 2:
Source 1996 Living Wage Conference, Social Equity
20.1 Decreasing the average working hours is seen to have a number of potential benefits, such as giving workers more leisure time, improving the quality of existing jobs, increasing productivity and creating more jobs .
20.2 Potentially negative outcomes could be prevented by carefully designed interventions, including the following:
20.3 In every possible instance overtime work should be replaced by full-time new employment.
20.4 A 40-hour working week must be introduced for all workers.
20.5 COSATU should campaign and discourage all workers in the short term from performing overtime work, so that in every possible instance full-time employment is created.
20.6 In the long term, COSATU remains committed to the banning of overtime work all together.
20.7 As an immediate ban on overtime working in certain industrial sectors is not possible at this point in time, a co-ordinated approach that will allow affiliates to work towards a complete ban is required.
20.8 It is recognised that it is necessary to campaign for a living wage in order to encourage workers not to work overtime as a means of additional income.
Source Social Equity, COSATU Living Wage Conference 1996 and Labour Job Summit Document
21.1 Carry out research on executive powers of the Health & Safety legislation in other countries.
21.2 Build capacity of worker and union representatives in safety committees through training
21.3 Government and business to provide funding for capacity building in the labour movement for health and safety and environment representatives.
21.4 COSATU must develop a co-ordinated, uniform curriculum for health and safety training.
21.5 Conduct massive education to inform and educate workers on the provisions of the Acts.
21.6 COSATU education department to produce a policy booklet on Heath, Safety and the Environment.
21.7 All union health and safety representatives must receive extensive training, and COSATU must develop strategies to achieve this.
21.8 COSATU must encourage the continuation of the process of membership education on the LRA. COSATU education structures must reflect this objective in its annual programme of education.
21.9 Affiliates must ensure training of officials on the new LRA.
21.10 The employers and government should pay for training of workers on the new LRA.
21.11 Members must be educated as to the new LRA procedures in regard to strikes, wild cat strikes, use of scab labour, essential services, etc.
21.12 Shop stewards should be given a minimum of 20 paid days training on the LRA. This minimum number of days should not be part of the normal shop stewards leave as regulated by the existing recognition agreements.
21.13 Two days paid leave should be granted to all workers to participate in union-run training programmes to familiarise them with the objectives of the LRA and the role of the workplace forums.
Source: CWIU, NUMSA and Living Wage Conference 1996
22.1 Establish Health & Safety and Environment structures at all levels.
22.2 The EXCO must ensure co-ordination of work by creating a separate department and ensuring release of human resources from within the current COSATU departments and projects.
22.3 Develop clear guidelines on how union representatives participate in safety committees.
22.4 Embark on a co-ordinated campaign to push for the implementation of COSATU's demands on health, safety, and environment.
22.5 Campaign for employers to pay for insurance cover where this is necessary.
Source: Health and Safety Conference 1993
1.1 Trade union investments should constitute a critical instrument in transformation the current South Africa capitalist economy into a socialist and worker controlled economy.
1.2 Within the above overall strategic objective, union investments will be aimed at the following short to medium term objectives:
1.2.1 Job creation
1.2.2 Benefits to members
1.2.3 Investing in the productive sector of the economy rather than speculative financial investments.
1.2.4 Progressively breaking monopoly capital's control over the economy.
1.2.5 Changing current patterns of ownership, control and corporate governance.
1.2.6 Building social capital and further strengthening and consolidating the social sector.
1.2.7 Developing a model democratic and transformed workplace.
Source: Resolutions Committee
Option 1
We need to establish investment companies with clear roles, form and functions to handle union investments
Source: Secretariat Report to 97 Congress, September Commission
Option 2
To campaign vigorously for independence from capital and to oppose investment companies and all forms of co-option.
To oppose the establishment of investment companies but have Provident Fund Trustees handling union investments.
Source: CWIU
3.1 To call for COSATU to invest its resources in socially useful projects that will lead to the rise in the living standards of the deprived communities.
3.2 To make sure that the poor and the working class will benefit collectively from such investments by the union.
3.3 Such socially useful investments can take the form of making money available from our Provident Funds for building houses, clinics and other necessary infrastructure. The majority of Provident Funds money should be invested in government bonds. Enabling legislation to this effect, must be enacted take place, this should include tax incentives for such investments.
3.4 The fight for worker control of Provident Funds should continue.
3.5 COSATU should adopt a clear code of conduct to guide COSATU affiliates in their investment strategy. This should take into account the federation's policy on privatisation.
Source: CWIU and