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


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Govt, stop spreading propaganda by repeating lies - COSATU

Zwelinzima Vavi and Willie Madisha respond to government slanders

Cosatu leadership responding to the misinformation in the cabinet press statement during their press conference on Thursday this week. Click here for the full story...

EDITORIAL

Leon and Holomisa line up with government against COSATU

COSATU will be doing something very wrong if it ever wins the praise and support of Tony Leon or Bantu Holomisa. The federation therefore welcomes the attacks on the anti-privatisation campaign by these two spokespersons of big business and the rich. It confirms that COSATU is doing something very right, in defending the workers and the poor against the effects of privatisation.

Leon has congratulated Trevor Manuel and the government for resisting COSATU's "political blackmail" and its demand to halt privatisation. Holomisa has declared that privatisation is an inevitability "from which none of us can run" and called on COSATU to reconsider its strike.

The DA and UDM have opposed every progressive policy carried out by the ANC government, yet on the issue of privatisation they are totally behind the government - strange allies indeed. Their support confirms COSATU's view that selling off state assets to private shareholders will only benefit the wealthy minority which the DA and UDM represent.

COSATU on the other hand, speaks for the majority - the workers, the unemployed and the poor. As well as its own two million members, the federation's general strike against privatisation now has the support of the National Congress of Trade Unions (NACTU), the South African National Civics Organisation (SANCO), the South African Communist Party (SACP) and the Treatment Action Campaign (TAC) - and the list is growing daily.

The general strike will go ahead on 29 and 30 August. The working class is united behind the call COSATU has made - "We did not fight for liberation so that we could sell everything we won to the highest bidder!"


A lie does not become truth, no matter how often it is repeated - COSATU

COSATU yesterday learned with shock the "distortions, half truths, and character assassinations" in the statement released by five members of the cabinet about its stance on government's intentions to privatised state assets.

The statement, titled "Restructuring of State Assets and the COSATU General Strike", was compiled by a team of cabinet ministers led by the Minister of Public Enterprises, Jeff Radebe. In the statement the cabinet, among others, accused COSATU of double standards and trying to sabotage the planned racism conference in Durban.

COSATU dismissed "misinformation" projected in the statement saying had it not been for its attempt to divide the labour movement and to character-assassinate the federation's leadership, it would not be worthy of reply.

The federation said the statement demonstrated once again that privatisation, not developmental needs, was driving the governments' proposals for restructuring the state. It said the government juxtaposed restructuring and privatisation only to obscure the essence of its proposals - that is to give the private sector increased control over public services, irrespective of the cost to the poor and the economy.

"Given this reality, it is opportunistic when the Cabinet statement claims that government's privatisation programme meets the RDP's (Reconstruction and Development Programme's) requirement of a case-by-case approach to restructuring.

What we have seen, instead, is an ideological commitment to bring in the private sector, with little or no attempt at in-depth analysis of the impact on development," said COSATU. The federation further said its was disappointed that the government is now equating competition with efficiency, and argues for privatisation primarily to reduce government spending and cut input costs.

COSATU further dismissed the "ideological tenor" in the statement that competition "will lower the costs to ordinary citizens" - saying it contradicted the experiences it had in this country.

"Privatisation has led to a 40% increase in local telephone costs, unaffordable fees in better schools and tertiary education, proposals that would increase the cost of electricity by 20-50 for household, rising water prices in places such as Durban, Dolphin Coast and Nelspruit, and worsening service standards, cut offs and evictions in poor communities," COSATU said.

It further said the government's policy framework has cost many people in this country thousands of jobs. Statistics South Africa (Stats-SA) reported that unemployment rate skyrocketed from 16 percent in 1995 to over 25 percent today.

The federation said the experiences demonstrate the weakness in the cabinet arguments published in the statement. "The statement demonstrates a sorry failure to study our demands or make a genuine effort to understand workers' concerns," said COSATU.

The federation further rejected the Department of Public Enterprises' (DPE's) "lie" that it agreed to its policy framework when it was published. On the contrary, said COSATU, the framework was condemned immediately after it was announced.

"A lie does not become truth, no matter how often it is repeated," COSATU said. It said although the DPE did consult it, almost its proposals were excluded in the framework, the same happened in its submission to the Eskom Conversion Bill.

COSATU said its campaign against privatisation is legitimate and correct and has receive support from almost all progressive formations, contrary to only two organisations, DA and UDM, government received support from.

Student organisations, civil society organisations labour movements and the alliance partner, South African Communist Party, has endorsed the federation's campaign.

COSATU said the strike is necessary as it the only action that can compel government to reconsider wholesale privatisation and enter meaningful discussion with the labour movement and other stakeholders.

"COSATU calls on our members and supporte
rs to remain vigilant against misinformation and propaganda campaigns, and to join in their numbers in the national stayaway and demonstrations on August 29 and 30," it said.


Bill should change the past, says COSATU…

Many people are now living in poverty, deprived of their hard-earned pensions by unscrupulous employers, and many more future pensioners are in danger of losing their rightful benefits, COSATU said this week in its address to the Parliament Finance Portfolio Committee on the Pension Fund Second Amendment Bill. The federation was invited by the Finance Ministry to present its proposals on the bill, which has over R80-billion under contention.

COSATU argues that the amount is not a "surplus" as it being called but assets that defined benefits expectations, and were not given to members, as they should have been. Its said the amount should be given to those members than being shared with employers, who it says have been helping themselves to the amount since 1981. The federation said the bill's proposals do not fully recognise the legal rights of employees.

COSATU said the whole case around the bill is a sensitive and emotional one especially for many workers who are totally reliant on retirement fund for survival in the context of high rate of employment. "Raiding of assets of retirement fund by employers has threatened to provoke a national confrontation reminiscent of the pensions strikes in the early 1980s," COSATU said.

It said that the fund belongs to its members and no third party should have legal or equitable stake in the fund and that every member is entitled to inflation related benefits.

The federation said that every member of the fund is entitled to a proportional share of what he or she would have been entitled to as a pensioner in the fund. "Any ordinary surplus remaining after satisfying the entitlement of pensioners and any leavers should be apportioned to pensioners and early leavers in equal shares," said COSATU.

These principles, COSATU says, form some of those that should inform the way in which the bill should resolve the issue.


SACTWU scores wage victory in the Cape…

A potentially crippling wage strike in the textile and clothing sector by 33 000 members of the South African Clothing and Textile Workers Union (SACTWU) in the Western Cape was this week averted at the eleventh hour by the employers.

The employers' organisation, Cape Clothing Association (CCA), agreed to Sanctum's demands when it tabled a "historic" 6.47 percent wage hike. This brings successful end of five months of tough wage talks in an industry which has nationally been revisited by more than 35 000 job losses over the last two years, with more than 175 permanent factory closures," said SACTWU.

The wage increase is expected to inject about R46 million into the economy of the Western Cape. The union said it believed it has achieved its strategic objectives for this year's wage negotiations as mandated by the National Bargaining Conference.

"These key objectives were to secure agreement to save jobs, to set up a National Bargaining Council for the industry, to secure a decent wage increase for members, to strengthen the union, and to confront the enormous challenges of HIV/Aids and the growing casualisation of work," SACTWU said.

However, amid this victory, the union's 6000 Johannesburg members have embarked on a wage strike after the negotiations between the union and the employers' body, Transvaal Clothing Manufacturers Association (TCMA), could not bear fruit.

Meanwhile, the Labour Court has interdicted Free State and the Northern Cape clothing workers to embark on a strike in support of their Johannesburg counterparts. The union said the ruling is unacceptable as it robs workers of their rights to strike in solidarity with other workers.


9 percent not so good, NUMSA says…

The bid to end the two-week strike in the motor manufacturing industry failed this week when the Commission for Conciliation, Mediation and Arbitration failed to satisfy the National Union of Metalworkers of South Africa with their proposed settlement of nine percent wage hike, which is against the 10 percent demanded by the union.

The union said it would only accept the proposed settlement figure on conditions that it would be improved in future. NUMSA further wants all outstanding issues to be resolved by end of this week.

"We trust and hope that the employers would not adopt the same paternalistic and parochial approach in the next coming week in an attempt to resolve outstanding issues…we are in line with the mandate of workers in this year's National Bargaining Conference that the union should not settle for unacceptable inflation wage increase," NUMSA said. The union, which said it would not rest until its demands are met, thanked the bravery illustrated by the workers in the strike amid difficult situation.

"The strike has been very peaceful and well supported by workers in the component manufacturing sectors and we extend our appreciation to the International Metalworkers Federation and sister unions in Germany, Canada, Japan, USA and Mexico," said NUMSA. It said that the strike is in pursuance of its strategic goal in advancing towards a real workplace democracy and ensuring that workers have access not only to decent wages but increased benefits that will improve their lives.

The union further said it is only through satisfaction that the workers have with their incomes that they can be able to be empowered. "If workers receive better wages that will collectively empower workers to take a stake in the industry and absorb the consequences of wage cuts. That will also bring social and economic justice for all workers in the industry.

"If workers receive decent wages in the industry that will renew their determination to address the long-term problems of the legacy of the past," said NUMSA. It said that the strike would be a lesson to other employers in the metal industry.


Strike looming in the tyre industry…

The National Executive Committee of the National Union of Metalworkers of South Africa (NUMSA) would decide over the weekend whether to embark on a wage strike in the tyre manufacturing industry. This follows the failure by the employers' organisation in the sector to meet the union's demand of 10 percent wage increase.

The Tyre Manufacturing Employers Organisation is only offering a seven percent hike that the union labelled "pathetic". Said the union: "In the current circumstances the strike action in unavoidable given the fact that employers continue with their unacceptable attitude.

We have taken precautionary measures to avoid industrial action - it unfortunate and regrettable that the employers' body continuously undermined paying decent wages in the industry."

The union said it had not received necessary cooperation to find a solution from the employers' side. It said it is shameful that the employers are protecting the corporate interest by ignoring the interest of the workers who work hard to make the industry competitive.

"We are heading towards a collision with the employer body who have not been sensitive to the demands of the union. We would like to emphasize that corporate interest and workers interests are inseparable," said NUMSA. It further slammed the employers for their "naïve and arrogant" attitude in dealing with the matter.

"The intransigent manner in which the employer body conducted themselves cannot be weighed in contemporary industrial relations as bargaining in a fair manner. The union has been pushed to a situation where workers are losing patience and tolerance as a result of the unfortunate conduct of the employers," the union said. It also dismissed statements that the industry is not making profit.

Meanwhile, NUMSA has welcomed an 8 percent wage increase by the Retail Motor Industry Organisation - preventing the huge strike action by 50 000 petrol service workers in the sector. The increase, which would be effected from September 1, is for both minimum and actual rates of pay.

"We are more delighted that employers in the petrol stations are moving away from a myopic approach and want to bridge a gab that has been widened in last few years. As the union we welcome the initiative to address real transformative issues in the industry. There are many gabs in the industry which require collective culture," the union said.

NUMSA said that the wage increase would enable the union leadership to take the industry forward. However, the union said wages of petrol attendants are a national disgrace in the industry. The union said there is a need for an urgent general engagement to address what it called "an apartheid legacy" wages in the motor industry.

"The motor workers are paid low wages not because of inherently low skills or no experience but because it is a discriminatory type of industry. These workers are working on Sundays and public holidays but paid a normal rate of R4.03 an hour and R3.10 respectively for petrol attendants in rural areas," said NUMSA.


SACP puts its weight behind the campaign

One of the partners in the tripartite alliance, the South African Communist Party (SACP), has endorsed its full support on the COSATU campaign against privatisation of state assets by the government.

The decision was taken over the last weekend at the unusual party's politburo in Johannesburg. The organisation said its support for the strike and the strike itself, is not about challenging the African National Congress-led government but to defend and build a much stronger public and parastatal sphere.

"As a party of socialism the SACP is both ideologically opposed to privatisation in principle, and programmatically we are concerned about many features of the current restructuring of state assets," said the party.

SACP said the campaign against privatisation is part of escalating working class struggles rooted in the neo-liberal restructuring workers in this country suffered for many years. It said the outcomes of economic restructuring and its outcome are neither desirable nor inevitable.

"Health, education, telecommunications, energy, transport, water and other public goods are basic human rights to ensure a decent life for all South Africans. As experiences from other countries show, the results of privatisation of basic service are a violation of the basic human rights to a decent life for the majority of people," said the SACP.

The party further called on all its members, leaders, supporters, and the unemployed as well as South African public to ensure that the planned two-day stayaway becomes a success.

Among other organisations that have put their weight behind the COSATU campaign are the labour federation National Council of Trade Unions (Nactu), Congress of South African Students, Treatment Action Campaign (TAC), SA National Civics Organisations (Sanco) South African NGO Coalition (Sangoco).


What you need to know about privatisation

Don't we need to restructure the state?

Isn't COSATU protecting its members' jobs at the cost of the broader public? COSATU has always called for the transformation of the state.

We inherited government structures designed to serve a minority and oppress the majority. We need new systems to extend quality services to black communities, establish participatory democracy in all spheres of government, and drive economic development.

Our quarrel is not with restructuring as such, but with privatisation - where government seems to think the only way to achieve change is to bring in the private sector.

Won't the strike harm South Africa by scaring off foreign capital, leading to a drop in the rand?

If government wants to stop the strike, it should start negotiating seriously. More fundamentally, experience all over the world demonstrates that the only way to attract large sums of foreign capital is to bring about economic growth. And the countries that have succeeded have gone against the wisdom of the international bankers - countries like China and South Korea.

The measures government insists on to reassure foreign markets - including privatisation and budget cuts - undermine domestic investment and our economy as a whole. The only capital they can attract is short-term, portfolio investment in stocks and bonds.

Those resources leave as fast as they come, causing economic havoc. For instance, foreign portfolio investment dropped from R80 billion in 1990 to R11 billion last year. Selling off state assets may bring in foreign buyers, but it doesn't increase total investment.

We need to find ways to build a robust economy on the basis of our own resources and expertise. Only then can we expect foreign capital to accelerate growth. That is why COSATU demands sector job summits and other measures to build the economy.

Does the strike mean the Alliance is over?

The Alliance is like a marriage: every disagreement doesn't mean a divorce. Besides, the majority of ANC members support our position on privatisation.

But government says it consulted COSATU on its policy framework?

It's true the DPE consulted COSATU on its policy framework. Then it ignored virtually everything we said. For that reason, when the policy framework was published, we objected to it publicly. There are clearly many officials in government who think that good policy can be made by bureaucrats in backrooms. More listening and less talking would have given us a better policy on privatisation - and less conflict now.


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

THANKS COSATU FOR STANDING AGAINST U.S

Dear Editor

Permit the Kwame Ture Work-Study Institute and Library to salute the Congress of South African Trade Unions (COSATU), South African Communist Party (SACP) and South African National Civics Organisation (SANCO) for your condemnation of the US government's threat to boycott WCAR if the issues of slavery and reparations, Zionism as racism, and caste-based discrimination are discussed. These and other issues will be discussed. Permit us also to salute the progressive forces on the ground in South Africa who stands in opposition to privatisation and payment of the apartheid debt. Forward to the International Day of Action Against Racism (IDAAR 2001) on 31 August; and forward to the demonstration in Durban that has been called for 1 September.

See you in Durban, in the streets!

Bob Brown, Director
Kwame Ture Work-Study Institute and Library

Dear Editor

I warmly congratulate COSATU, SACP and SANCO for their moral courage in condemning US arrogance and attempts at blackmailing the coming racism conference into submission. Your are doing so at a time when your government appears so keen to do everything to please so-called foreign investors who are in fact adventurers and speculators with no intention of helping any country progress. I also appreciate the very summary, but franc and informative analysis of the social and political situation in present-day South Africa.

Africa still has a long fight ahead.

THE STRUGGLE CONTINUES!!!

Yours respectfully
Anthony Turkson
Ghanaian national resident in Sweden

Dear Editor

The reason I'm writing to you are that I completely support your assertions that the US should and must not dictate the terms of the coming Durban conference on racism. The US is the most racist country in the world. They don't want to face to the terrible things they have done to Africa before and after the slave trade. The US was complicit in supporting and keeping apartheid alive in SA. We will never forget that. The US killed many of our leaders in the 1960's. We will never forget that too. COSATU is a very compelling organisation and your actions are taken seriously. Do not forget Bantu Biko and the rest long gone. Africa is with them.

Nkosi si ke lele Africa.
Aminu Wouba.

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