PROGRAMME OF ACTION - COSATU CENTRAL COMMITTEE

25 June 1998

1. On 22-25 June 1998 COSATU held its inaugural Central Committee. This took place against the backdrop of :

* Continuing job losses, rising poverty, inequality and unemployment;

* The rise in crime, particularly against women and children;

* Turmoil in the markets, rampant financial speculation, and rocketing interest rates;

* Intensified attempts to undermine the role of the democratic state in social transformation, provision of basic social services, and involvement in the productive sector of the economy;

* Upcoming General Elections

2. After four days of intense deliberation, COSATU has adopted a comprehensive socio-economic policy which, if implemented, would put our country firmly on the road to sustainable economic growth and a better life for all. As a result of frank and open discussion by COSATU affiliates, and a  willingness by the 500 delegates to persuade and listen to each other, the Federation emerges more united on socio-economic and political issues than ever before. This programme reflects the product of that united perspective.

3. The mood of the delegates was one of determination not to allow the forces of the past to hold us to ransom, or to derail the process of social transformation. As a result, the Central Committee agreed on a wide range of policies designed to address this social and economic crisis, as well as the need for a decisive ANC victory in the next elections; and on the need for a programme of action to take us forward.

4. This Central Committee commits COSATU's 1,8 million members  to embark on the following  programme of mass action  in support of five inter-related campaigns. The success of this programme will require co-operation and determination by all progressive forces in the country, including the government. It is for this reason that we need to raise these campaigns in the alliance, with government, as well as mobilise all those committed to transformation, to ensure effective implementation of these policies and campaigns:

I. CAMPAIGN FOR JOBS  AT A LIVING WAGE, AND AGAINST POVERTY AND INEQUALITY

There is a crisis of job loss and unemployment. Despite growth, unemployment is not being reduced. Big business is intensifying retrenchments, casualisation, and contracting out, in the search for ever-higher profits, and at the expense of working people and our country. Massive profits, instead of  being reinvested are being diverted to financial speculation, or taken out of South Africa. Instead of creating new employment, employers are destroying existing jobs. Growing pressure is being placed on government to cut back the public sector, slash spending, and  reduce its involvement in employment creation. Tariffs are being reduced faster than GATT/WTO requirements, destroying jobs, and undermining our manufacturing base.

The jobs crisis is intensifying poverty and inequality, the primary victims being the unemployed, and working poor. This all takes place in the run up to the jobs summit, and urgent action is needed IN DEFENSE OF OUR JOBS AND FOR JOB CREATION. This Central Committee therefore calls for:

1. A Moratorium on Retrenchments- we cannot afford to destroy jobs during a national crisis of unemployment and poverty. There needs to be a national agreement to do everything possible to save existing jobs. This means

* a commitment by employers in all sectors to avoid retrenchments.

* the convening of summits, such as the gold summit, in different sectors, to agree on measures to save, and create jobs. This should complement a national agreement on the matter at the Jobs Summit.

* Legal measures must be introduced to make retrenchments impossible without negotiations. An urgent amendment to the LRA must be passed to this effect

2. Investment in jobs- business has totally failed to invest in employment, despite the introduction of conservative economic policies they demanded in the first instance. Therefore we call for a package of measures to be introduced  during this first term of government, to channel investment into job creation. This includes:

*  financial regulation to stop disinvestment by business;

*  introduction of taxes to penalise speculators, and reward labour intensive investment;

*  legislation of prescribed assets requiring financial institutions, including retirement funds, to invest a portion of their funds in employment creating ventures and social infrastructure;

* active intervention by government to channel public and private sector investment, through all its agencies, including public utilities, the Industrial Development Corporation; and Development Bank;

* a deliberate policy to reduce interest rates, and the introduction of differential interest rates, to encourage investment in development.

3. Active state role in employment creation-  we call for the government to embark on a deliberate and co-ordinated programme, with clear time-frames and targets, aimed  at creating  a specified number of jobs within an agreed period.

* Hundreds of thousand of direct jobs should be created by a programme of mass housing.  We call for a public housing parastatal to be  created to provide affordable rental housing for working people. Other innovative solutions, such as the organisation of housing  brigades, to build houses on a collective basis, should be promoted.

* Public works programmes must be implemented.

* The public sector needs to be expanded in areas where there is a critical shortage in service delivery. We reject and will campaign vigorously against attempts to arbitrarily cut back the public service.

* All areas of government policy need to be audited for their employment creating  (or job destruction effects) and adapted accordingly. This includes

* Adjustment of trade and tariff policy to require the employment effects of all trade agreements to be assessed;  and  tariff barriers, where necessary,  should be reintroduced to protect our jobs;

* procurement policy must have employment creation as a central condition;

* and job destroying monetary and fiscal policies must be abandoned.

4. Jobs at a living wage-lowering labour standards, and creating badly paid temporary jobs, in the place of decent-paying full time jobs, as is being demanded by business, is a recipe for even greater poverty and inequality. So called 'labour market flexibility' is just a disguise for greater exploitation and undermining of worker rights. We reject the argument that worker rights prevents employment creation. Management and the high-paid consume far too much of the country's resources, and it is at this level that 'rigidity' needs to be addressed.

* We will campaign for the closing of the apartheid wage gap between the top and bottom in all our industry negotiations, as well as through inclusion of measures to close this gap in the Employment Equity Bill.

* We will continue to campaign for a basic minimum wage, together with a package of minimum benefits, to be introduced in all sectors of the economy, to be set by collective bargaining; or by the state, where collective bargaining has not yet been established.

Further, we will frustrate the attempts which are being made, particularly by business, to undermine the constitutionally-entrenched rights of workers. We will campaign against:

* attempts to introduce a dual labour market, by denying young workers the right to minimum protections negotiated by unions;

* attempts to amend the LRA to prevent negotiated industrial agreements from protecting all workers, organised and unorganised, in the affected sector;

* any attempt, in whatever guise, to introduce zones where workers have inferior rights to workers in other parts of the country.

* We will continue our campaign to ensure that all the agreements which were negotiated in the Alliance on the Basic Conditions of Employment Act are introduced into parliament in the form of agreed amendments during this session

5. Support for the unemployed - in the short to medium term many unemployed people will continue to need assistance. A number of support measures must be urgently introduced to prevent unemployed people from becoming destitute, and assisting in integrating them into the productive economy. Such measures should be seen as complementary to employment, since the most effective way to support the unemployed is through sustainable employment creation. These measures include:

* Extension of unemployment insurance to those who have been unable to find work, or the introduction of a basic income grant to those living in poverty;

* Introduction of special rates and concessions for the unemployed in all areas of society, whether transport, public amenities etc and to encourage the private sector to do likewise;

* Introduction of Social Plan measures to assist those who have been retrenched as a result of crises in particular sectors;

* Training measures and support measures for the setting up of co-operatives and self-employment.

* Land reform, support measures for women and youth, and food security measures to deal with the crisis of poverty, particularly in the rural areas.

6. Employment Charter- Commitments on all the job-related areas outlined above must be enshrined in a National Employment Charter, whose principles must be agreed at the Jobs Summit. The details of the Charter should be finalised at Nedlac.

II CAMPAIGN FOR BIG BUSINESS TO INVEST IN SOUTH AFRICA

Through their actions, big business are systematically undermining attempts to reconstruct our country. In particular, their

* massive disinvestment from the country,

* rampant speculation, and undermining of the currency,

* refusal to pay taxes, white collar corruption and defiance of labour laws

* refusal to invest in our people, despite their claim to be concerned about the low levels of education and training

* opposition to all attempts at transformation,

* constant pressure on government to abandon the RDP, and introduce conservative economic policies, which in the end stifle economic growth and cause stagnation. have all raised questions in the mind of the majority as to where the loyalties of South African business lie. It is clear that unless relentless pressure is place on them, they will continue to pursue destructive strategies, regardless of the cost to our country.

Further, workers, as major policy holders in Old Mutual and Sanlam, reject the unilateral decision by the Mutuals to strip policy holders of the right to collectively control these institutions, and to shift control of major assets to international investors.

In addition, the banks have handled the issue of interest rates with total disregard for the interests of consumers and the country. They seem only interested in their super-profits.

Therefore, this Central Committee commits itself to

* Campaign against Demutualisation and use of workers money to promote it;

* Campaign against attempts by employer to raid pension surpluses;

* Campaign to force business to pay their fair share of taxes, and adhere to the country's laws;

* Campaign against disinvestment;

· Campaign for: the introduction of capital controls;

* Campaign  for regulation of the financial sector;

* Campaign for investment in our people ;

* Campaign against excessive profit making of banks;

· Democratisation of economic and workplace decision-making

We call on all South Africans, including emerging black business, to support this campaign to put South Africa first.

III CAMPAIGN FOR THE STATE TO  ACTIVELY PROMOTE RECONSTRUCTION AND DEVELOPMENT

* The introduction of inappropriate fiscal and monetary policies, in the form of GEAR, has drastically limited, and undermined the role of the democratic state in driving social transformation. The Central Committee believes that these policies, which  have been forced on the country for ideological reasons, must be abandoned before we reach a point of no return, and create irreparable damage to the transformation process.

* The Central Committee believes that only an activist, interventionist state will be able to effectively lead the process of development. To this end, COSATU will campaign against all attempts to undermine this role, and will actively campaign for the introduction of measures to empower our democratic government to fulfil its historic mission.

* COSATU will mobilise in favour of measures being taken by government to transform society in critical areas including national health; water; and labour. Further we will support campaigns to remove those few aspects of the constitution blocking transformation, and transform remaining centres of apartheid power, such as the judiciary the army and others.

* We will campaign for the reduction of our national debt, and release of resources, in particular through the introduction of a Pay as You Go system for public sector pension funds, which will slash the debt, and release billions of rand for development.

* We will campaign for a peoples budget which is tailored to meet the needs of our country, not obsessed with one target- the fiscal deficit. Attention must be focussed on directing expenditure to reduce the social deficit. To this end a  band should be introduced, to allow for flexibility in deficit and revenue targets. COSATU will demand the renegotiation of the parameters of medium term budget framework, to release the necessary resources for delivery, as well as the involvement of parliament and Nedlac in formulating the budget. We will campaign for a progressive tax regime, which ensures that corporations and the wealthy pay their share towards reconstruction of the country. We further support the proposal by the Deputy President for  the introduction of a Solidarity Tax.

* We will campaign for the transformation of the Reserve Bank, which is an unaccountable institution pursuing monetary policy which is choking the economy.

* Strategic role of the public sector in the economy and social delivery: COSATU will campaign against privatisation, and attempts to move towards privatisation of strategic state assets, which are responsible for delivering basic services, or are key to the state's ability to intervene in the economy. Where there are breaches in the NFA, Ministers should be called to account for their failure to honour agreements reached. In particular COSATU will campaign against attempts to move towards privatisation of Eskom, elements of Transport, and delivery of  municipal services.

* We will campaign for the state to increase its capacity to intervene in the economy, through the setting up of its own institutions, including in the financial sector, a housing parastatal, as well as intervening in other strategic areas such as mineral rights.

* We will campaign against attempts to cut back the public sector, which threatens to cause collapse of our public services in key area.  A national framework agreement for restructuring the public sector must be negotiated, which identifies areas of service delivery where personnel need to be expanded, and areas of bureaucracy which need to be reduced.

* We will campaign for the provision of public services in areas such as transport, infrastructure, and housing.

* We will campaign for the introduction of a comprehensive social security system, and social wage. This will need to strike a balance between contributory funds (social insurance) and social measures funded from the fiscus.

CAMPAIGN FOR INTERNATIONAL ECONOMIC JUSTICE

The Central Committee resolves to:

* Continue COSATU's campaign to support workers and peoples fighting national tyranny, in Indonesia, Nigeria and elsewhere. We also resolve to intensify support for workers struggles in Southern Africa.

* Campaign against the Multilateral Agreement on Investment (MAI), which is a proposed charter by the G8 countries, negotiated in conditions of virtual secrecy, with devastating consequences for developing countries. If  the MAI is agreed it will strip the sovereign rights of national governments to shape policies in such areas as fiscal, trade, procurement, labour market and other areas.

* Campaign for the restructuring of international financial institutions, including the IMF and World Bank, whose neo-liberal programmes are causing chaos and untold hardships around the world. This campaign will seek both to make these institutions accountable, abandon their failed structural adjustment programmes, as well as call for the introduction of international capital controls, and measures to deal with financial speculation.

* Campaign for the renegotiation and rescheduling of international debt, as well as  writing off the debt of the poorest nations.

* Campaign for the transformation of the international trade regime, including the restructuring and democratisation of the World Trade Organisation, to ensure fair representation of the interests of developing nations; the involvement of trade unions and civil society in shaping a fair trade regime; and the protection of human and labour rights in trade agreements, though the introduction of the social clause.

* Resist attempts by the industrialised countries to dump nuclear and chemical waste in Southern Africa; and ensure safety in our nuclear plants.

* This alternative platform for international economic justice should be taken to the forthcoming Non Aligned Movement Summit to be held in South Africa in September, as well as other international fora.

* We call on the international trade union movement to unite with us around this programme.

V. ELECTIONS CAMPAIGN The Central Committee resolves to mobilise all workers in support of a decisive ANC victory in the 1999 elections. The details of this Campaign are outlined in a separate resolution adopted by the CC.

PROGRAMME OF ACTION

The Central Committee hereby resolves to embark on a process of comprehensive and sustained engagement with all sectors of our society in pursuit of the above campaigns. We note that many sectors of society share similar concerns, including the Alliance, churches, the NGO Coalition and other mass formations in campaigns for economic and social justice, and campaigns against poverty and inequality. The government has also committed itself to these campaigns. The vast majority of South Africans share the concerns which have been expressed by the COSATU Central Committee delegates.

Further, we believe that recent research for the government on poverty and inequality, as well as investigations by international agencies such as the UNDP, confirm our views on the nature and extent of the problem, as well as the danger of applying inappropriate solutions. We will make this information available in our campaigns, to counter the misinformation being spread every day, particularly in the business media, by those promoting the agenda of globalisation and financial interests.

COSATU will take forward these policy proposals and campaigns into all important policy forums of government and the Alliance. In particular we will advance these perspectives in the forthcoming Alliance Summit, at which we hope to reach agreement with our Alliance partners on a number of the issues. This will lay the basis for a united Alliance platform both in the Jobs Summit, and the 1999 elections.

The Central Committee resolves to engage the masses of our people in several phases of broad-ranging actions in support of these campaigns, rather than a one-off event. The first phase of these actions will be in the three months between the beginning of July and the middle of October. The COSATU Central Executive Committee will meet on the 13-15 October 1998 to evaluate the campaigns, and determine what further actions should be embarked on during the second phase. The third phase of action will take place in the run-up to the 1999 elections, when we will continue to popularise the demands of COSATU (and the broader Alliance) for transformation, in our campaigns amongst workers.

First Phase July - October 1998 The first phase of action will include the following:

* COSATU Regional Congresses, during 11-12 July, to take forward the decisions of the Central Committee

* A series of shop steward councils and workers forums, in all regions of South Africa, to popularise and discuss these campaigns;

* All COSATU affiliates should also hold sectoral councils and forums;

* Meetings with our Alliance partners, MDM formations, community structures and churches, to explain the decisions taken by this Central Committee, and to discuss possible joint actions;

Campaign for jobs

* In the weeks leading  up to the Jobs Summit, marches of the employed and unemployed for job creation and in defense of our jobs. These marches in different regions will collect demands of the employed and the unemployed. On the day of the Summit, a massive national march will be organised in the region where the Summit is being held, to present these demands to the Summit.

Campaign on business

* Marches on Old Mutual and Sanlam to oppose the unilateral demutualisation process they have embarked on, and their use of workers money to fund it;

* Action against the Banks and the SA Reserve Bank to protest against their irresponsible handling of interest rates and monetary policy, excessive profiteering, and abuse of consumers;

* This will be in addition to meetings to be held with these institutions.

Campaign for transformation

* Action to oppose the Eskom Bill, in particular proposals for corporatisation and taxation, and to defend the public provision of affordable electricity to all. Similarly, action will be embarked on against the privatisation of municipal services, and other areas of unilateral privatisation;

* Action to oppose the proposed deregulation of the liquid fuels sector, and its implications for an effective state-led energy programme, as well as massive job loss;

* Mobilisation of mass support for the government's programme to make health care accessible, on the day of the court action by the pharmaceutical companies. Who are opposing measures to make medicines affordable;

* Similarly, mobilisation of our members on the day of the SARFU court appeal, in support of the demand for the transformation of the judiciary, and other unreformed apartheid dinosaurs;

Campaign for international economic justice

* Engagement of fraternal organisations and governments in the run-up to the Non Aligned Movement Summit in September, and mobilisation of demonstrations of public support for our demands for international economic justice;

* Organisation of a rally to welcome Comrade Fidel Castro as the honorary patron and life-long advocate of the campaign for economic justice, together with our President.

Solidarity In line with this programme, we commit ourselves to mobilise our members in solidarity with struggles being waged by various affiliates, including in the current round of collective bargaining, around jobs, closing the apartheid wage gap, and other related issues.

Nowetu Mpati COSATU Head of Communications

Tel:    + 27 + 11 + 339-4911
Fax:    + 27 + 11 + 339-2281
E-mail: nowetu@cosatu.org.za