The weekly newsletter for COSATU members and the public
3 August 2001
 


This week...

In other news...

Two-day national stayaway is definite

Cosatu general secretary, Zwelinzima Vavi, yesterday announced the dates for the two-day national strike against government's intentions to privatise public assets. Click here for the story.

EDITORIAL:

Action will follow deadlock at NEDLAC on privatisation policy…

The discussions held at NEDLAC on COSATU's Section 77 Notice on privatisation were concluded without reaching agreement today. As a result, COSATU has no choice but to embark on its programme of action.COSATU will now submit a Section 77 (1)(d) notice to NEDLAC giving the details of actions. We will hold provincial actions between August 16 and 21, and a national stayaway on August 29 and 30. Thereafter, we will consider sectoral actions. We will, of course, remain in contact with government in hopes of finding a settlement. COSATU opposes privatisation because it reduces basic services for the poor and diminishes the capacity of the state to restructure the economy. Our demands are therefore:

  • A freeze on privatisation initiatives until we have established a more appropriate policy framework. We define privatisation as any initiative that hands control or ownership of government functions to private interests.

  • No privatisation of basic services and national infrastructure networks. By basic services we mean water, sewage, rubbish disposal, electricity, welfare, and basic housing, health, transport, education, telecommunications and cultural services such as stadiums, parks and libraries. National infrastructure includes transport, telecommunications, electricity and bulk water supplies.

  • Any restructuring of state assets must involve a full, detailed investigation of the impact on poor communities as well as on the capacity of the state.

  • Any privatisation initiatives must be approved by the legislature, if it involves national or provincial entities, or by the municipal council in the case of local-government
    resources.

We tabled these demands through our Section 77 Notice at NEDLAC on June 18. The first meeting to discuss them with government was held on June 30. Government only responded to our demands on July 27.

We then held two meetings, in which the government negotiators only repeated their refusal to meet our demands. It was clear that government did not engage seriously on our demands.

For this reason, the NEDLAC Standing Committee on Section 77 today found that the issues had been explored and COSATU members are free to take protected action.

In the coming weeks, we will hold discussions with other organisations in civil society to build a broader campaign to stop privatisation and protect basic services and infrastructure for all of our people.

Privatisation will deprive all our communities of their rights to basic services. We call on them to join the COSATU campaign. Those workers whose jobs are not on the line as a result of privatisation must appreciate that, both as members of communities and as workers, they stand to lose if government succeeds in privatising public enterprises, local government services, and parts of the social services.

We did not fight for liberation so that we could sell all we won to the highest bidder.


Workers down tools against the company's "meagre" wage offer…

About 15 000 members of the National Union of Metalworkers of South Africa (NUMSA) at the steel company, Iscor, is today taking to the streets against the company's "meagre" seven percent wage hike.

The union demands 15 percent wage increase across the board. Earlier this week NUMSA issued a 48-hour notice at the company in terms of section 66 of the Labour Relations Act.

The union said its members from Vereeniging, Vanderbijl Park and Newcastle decided to down tools at the company after wage negotiations deadlocked.

"The union tried to motivate and justify the 15 percent wage demand only to find that employers are stubborn, naïve and unprepared to reciprocate positively on the demands," said NUMSA.

This, the union said, have diluted the good intentions of bargaining in a fair manner.NUMSA contests that its demand for 15 percent wage hike is reasonable and is aimed at improving the livelihood of the workers.

Said the union: "The 15 percent wage demand is based on the study conducted by the union, which revealed that 60% of the steel and engineering workers purchasing base diminished by 30% in the last three years because of obtaining inflated related wages."

It said the "poverty" wages offered by the company have not assisted the workers due to increase in commodities, which were more than what they got.

Although Iscor is citing costs problem as an excuse for not increasing workers' wages, said NUMSA, the company has failed to reveal its "financial information on profits."It said it was "irresponsible, greedy and selfish" of the company to refuse workers with wage increase.


Stop holding the world to ransom, alliance members tell US…

Members of the alliance, the South African Communist Party (SACP), South African National Civics Organisation (SANCO), endorsed their support to the government against the United States' threat on the Conference against Racism and Xenophobia due to take place in Durban this month.

US have threatened to boycott the conference if topics such as reparations and Palestinian question are not removed from the agenda. The three organisations said yesterday that they have
learned with "disgust" about US's intention, which has lately been backed by the United Nations secretary-general, Koffi Annan.

The organisations said that the US government fails to see the fact that its invitations is based on the assumption that it is against racism and xenophobia.

They slammed the country's reputation of always "bullying" its way through issues it is against.

"Too often the United States resorts to blockades and military acts to blackmail and bully wherever it does not find its way…now that this bully would not be able to use veto power in the conference, it is resorting to threats of boycott and blackmail," they said.

The organisations urged US to show enthusiasm to the issue of reparations for victims of racism like the way they did to the victims of Nazism.

They said failure to do so would be illustrating racism and its participation should not be missed. "As the leadership and membership of COSATU, SANCO and the SACP, we call for a united front of all South Africans, black and white, who are opposed to racism to unite firmly against the US blackmail, dictatorship and racism," said the organisations.

The three organisations will picket against the country's stance at its embassy and consulate in Pretoria and Durban respectively, on August 16.


No to gambling with people's wealth - COSATU…

COSATU has officially announced its intentions to embark on a two-day national stayaway against the government's plans to privatise its assets.The stayaway, which is scheduled to take place on August 29 and 30, was announced yesterday by the federation after negotiations in the National Economic Development Council (Nedlac) could not bear fruit.

The Nedlac Standing Committee on section 77 gave COSATU a nod yesterday to take a protected action.

The federation is demanding to the government that it freezes its privatisations initiatives until it has established a more appropriate policy framework. It said any privatisation of state assets must involve a full, detailed investigation on the poor communities as well as on the capacity of the state.

COSATU said privatisation would affect badly on the affordability of basic services such as water, transport, telecommunications, cultural services, health, and electricity. The federation said it would mobilise workers, non-governmental organisations and members of the community for the scheduled stayaway.

"Privatisation will deprive all our communities of their rights to basic services. We call on them to join COSATU campaign. Those workers not affected by the job losses that are synonymous with privatisation must appreciate that, both as members of communities and as workers, they stand to lose if government succeeds in privatising public enterprises, local government services, and parts of the social services," said COSATU.


Iscor unbundling to cost workers 21 000 jobs…

The proposed unbundling of the mining and steel company, Iscor, into separate (steel and mining) companies will result in close to 21 000 workers losing their jobs, National Union of Metalworkers of South Africa (NUMSA) said this week.

The union, which is demanding that the company disclose information on the matter, said it is not sure the proposed unbundling will make profit. It said the mining industry has been sustaining the weak steel industry with regard to profit-making hence the proposal to separate the two would hit hard at the latter.

"The decisions taken by the (company) management have not been commensurate in establishing good relationship to the survival of the company and for the benefit of the economy," said Numsa.

It further slammed the company for failing to take full accountability of its workforce. It said there is a need to change a situation whereby company shareholders and managers have a prerogative of deciding workers' fate in this country.

"The challenge facing the union at the company is not only to improve wages and working conditions but to change the conservative mindset of the top management," said Numsa.

 


No to privatisation of state assets - COSATU…

Hundreds of workers in the COSATU Wits region last Friday demonstrated outside the office of the Gauteng premier in Johannesburg, demanding a halt to the government's intentions to privatise its assets.

Government is intending to open doors for private shareholding in national commodities such as water, electricity, health and education. In a memorandum presented to the premier Mbazima Shilowa, COSATU said privatisation would make it impossible for the state to ensure social and economic development - the reason why all workers should support its anti-privatisation campaign.

It said privatised services would not provide affordable services for the poor as their interest is only in profit making. "Private companies do not want to serve the poor, business take over government assets or services in order to make profit even if government pay them a subsidy, they often skimp on services provisions.

It said the dangers associated with privatisation are that the agreement has got no policy. It said the government should stop privatisation until it has formulated a policy restructuring state assets.

"Any proposal for restructuring that will lead to privatisation of any kind should be subject to broad and open public debate, and agreed to by parliament or, in the case of local government, by the town council," said COSATU.

Such policy, it added, must ensure improved services for communities, especially the poor, and should keep and create jobs. "A policy on privatisation must be informed by broader consultation and debates by the communities…unilateral restructuring must be stopped," COSATU said.

The federation demanded to the premier, among others, to stop the continuation of funding private schools, the process of shared services centre concept and a commitment from government those relevant democratic structures, national, provincial government and city councils to vote on any proposals to privatise government functions.


Happy 80th Birthday SACP…

For the South African Communist Party (SACP), socialism is not just a vision for the future - it is the future which has to be struggled for here and now - the organisation said on its historic 80th Anniversary celebrations held in Rustenburg, Durban and Cape Town last weekend.

It said it is in this context that it is, as the leadership of the working class, struggling against the neo-liberal restructuring of the South African economy. "It is only a mobilised and conscious working class which can defeat capitalism and usher our country into socialism," said the SACP. Meanwhile, as part of its 80th birthday, the SACP unveiled its plaque in Cape Town, the city where the organisation was founded eighty years ago. Stalwarts Brian Bunting and Billy Nair were honoured with the Moses Kotane award.

The award, which is the first to be awarded to any person, was named after the party's first president.

South Africa's deputy president and the general secretary of the party, Blade Nzimande, laid wreaths at the graves of the late SACP leaders, Johannes Nkosi and Monty Naicker in Durban.


COSATU salutes SACP on its 80th birthday…

The country's working class and the general public are this year celebrating the historic 80th Anniversary of the South African Communists Party (SACP) countrywide.

The latest celebrations, which took place in Cape Town, Durban and Rustenburg last weekend saw the party and its alliance partners leadership from around the country coming to reflect back at the selfless 80 years of struggle by the SACP.

The organisation's stalwarts and veterans were honoured with awards and other tokens of martyr leadership acknowledgments.

In its message of solidarity to the SACP, COSATU, which represent almost two million workers in this country, saluted the party for its unbroken struggle for liberation. It said that no one could deny a vanguard role and the non-racialism stance the SACP illustrated in the liberationstruggle.

COSATU said the involvement of white communists in the ranks of the apartheid struggle showed that not every white person was a racist.

"It is thus partly due to the work and politicisation of the SACP that the first founding principle of COSATU is the principle of non-racialism - a principle that continues to guide our work," said COSATU.

The federation said this is the reason why it values the World Conference Against Racism in Durban scheduled to take place this month.

It said it is because of the country's non-racial democratic achievements that the conference is being staged in this country. "…It also remind us of our duty to fight racism, xenophobia, tribalism,and sexism in the workplace and in our communities," said COSATU.

It said that it will organise some demonstrations in Durban, the venue of the conference, in demand for, among others, transformation of the UN related institutions such as World Bank and World Trade Organisation, and reparations in order to bridge the gap between the poor and rich countries. COSATU said the SACP has, for 80 years, demonstrated a commitment to sacrifice "one's own life in the service of the working class, for the ideals of freedom and equality."


Policy will shut doors at the poor…

The Telecommunications Policy Directions, issued by the Minister for Telecommunications, has a major focus on the opening up of the sector to competition rather than attempting to ensure affordable access to telephony.

COSATU said last Friday after the ministry proposed two competitors in the telephone industry.The Telecommunications ministry previously said there would only be one competitor. COSATU said the proposed market structure would undermine the objective of affordable universal telecommunications for all South Africans.

It said while it is not opposing some regulated competition for the provision of high-level services to business, competition in the provision of basic telephony is likely to drive up the cost
to the poor.

"COSATU is not convinced that the market structure proposed in the Policy Directions is conducive to a telecommunications industry which meets people's basic need," said COSATU.

The federation said that the opening up of the sector for two more private companies would dictate cost minimisation and revenue maximisation.

"Economic logic, backed up by relevant international experiences, indicates that competition leads to cherry-picking and an improvement in costs and service for the upper end of the market, side by side with poor or no service for the lower ends," said COSATU.

COSATU said its major concerns with regard to the telecommunications market structure are that, among other, the integrity, viability and orientation of the national public telecommunications provider, Telkom, could be undermined by the proposals of the policy.


NUMSA scores victory…

While the National Union of Metalworkers of South Africa is still at loggerheads with steel and engineering company, Escort, it has managed to hit a jackpot within the industry. This week the steel and engineering employers' union, Steel Engineering Industry Federation of South Africa has agreed to sign a two-year wage agreement for 2000 workers in the
industry.

The agreement will see wage hikes of nine percent for the lowest paid and eight percent for the highest paid workers. Workers can expect a hike in overtime as well as from July next year.

Said NUMSA: "This is a good agreement that will benefit the workers in the steel and engineering companies. It also represents a mandate from the workers not to accept an increase below the inflations rate."

The deal, which the union called "historic", was struck after lengthy deliberations between the union and the employers' union.

NUMSA said the agreement would certainly improve the living standards of workers and increase their purchasing base. It said it would further oblige workers to bear responsibility for all workers' rights particularly on issues that relates to HIV/Aids.

"The agreement vindicates the union stance that this year workers will not settle for an unacceptable agreement that erode the rights or workers," said NUMSA, adding that it will boost the morale and labour productivity in the companies.



SATAWU welcomes company's financial turnaround…

South African Transport and Allied Workers Union (SATAWU), the COSATU affiliate, last week welcomed the financial statements released by the transport utility, Spoornet, which reflects a net profit of R605-million.

The union said the profit purely illustrates that there is nothing inefficient about government-owned assets. Government has announced its intentions to privatise most of its assets. SATAWU said the turnaround is also an indication of how negotiations and consultation between it and the company yields good results.

"The slash and burn approach of railway managers and governments in many other countries creates losers all round. It results in huge job losses, unbearable pressures on remaining workers, the closure of many lines, and abandonment of customers regarded a unprofitable," said the union.

It said the turnaround also indicates the advantages of an integrated railway system. The union said it is essential that the company continue self-financing its investment needs as well as integrating its bulk and general freight operations.

It said splitting off the bulk operations would only be messing up with basic railway economics. "Outside the metro rail system, which is not part of Spoornet, the only financial role the government has played in the railways over the past hundred years has been to underwrite loans for investment…but Spoornet and its predecessors has never defaulted on its loans," said SATAWU.

The transport union and other similar unions within the company are currently engaged in "tense" discussions with the government and management of the company on the future of the railways.


Letters

COSATU Weekly believes that there are a variety of weekly developments that need to be discussed or raised to the attention of the readers and workers at large. If you have any compliments, queries or comments on the current issues, send us your brief letter to The Editor or fax it to (011) 339-7788. The newsletter can only publish a few letters a week.

Dear Editor

Re donation for Swazi refugees in Amsterdam- Mpumalanga…

The Swaziland Solidarity Network is appealing for donations of any kind for the evicted refugees from the two villages in Swaziland who are now housed by our comrades in Amsterdam.

These people are direct victims of the autocratic rule of the king of Swaziland who evicted them towards the end of last year because they resisted the imposition of Mswati's elder brother as a double chief of these areas.

They have been surviving through handouts from individual comrades from Swaziland and South Africa, but as the number keeps on growing there is a dire need for all people to make contributions of whatever nature.

Primarily these people are forced to share a sheet in such cold and sometimes go to bed without having eaten a thing.

All donations can be made through the head office of the Swaziland at COSATU House, 7th Floor, Braamfontein, 1-5 Leyds street.

We thank you in advance. In the true spirit of international solidarity.

Fraternally yours

Sandile Phakathi
Publicity and Campaigns officer
Tel - 011 339 3621+ADs-


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