SACCAWU NEC press release on the current situation 19-03-08

 

20 March 2008
SACCAWU NEC Press Release on the current situation:

The SACCAWU NEC which gathered from the 18 - 20 March 2008, following shortly after the COSATU CEC of 25 - 27 February 2008, had extensive political and organizational discussions based on the political input presented by the GS of the SACP comrade Blade Nzimande and the subsequent discussions as well as the organizational reports and discussions; wish to note the following:

Not withstanding achievements of the ANC Congress in December 2007 in Polokwane - both at a level of elections of leadership and at a policy level - the challenges facing the working class remain enormous and workers and the poor should remain vigilant and effectively utilize the space created as a result of the changes in the political landscape. To this end, particular attention should be given to economic policies, industrial development policies and defending the hard fought victories of workers around issues like liberalization of the labour market.

Further, at an international level, the global economy has shown an indication of a slowdown in growth and some analysts even suggest the possibility of a recession. The chaos on the stock exchanges throughout the world, including the JSE, has seen billions of rands being wiped off in a matter of days. And despite the assertion by the Minister of Finance, Trevor Manuel, during his budget speech 2008 that the policies adopted since 1996 - the GEAR policies - has developed sufficiently to withstand the coming period of chaos and uncertainty, it is clear that this resilience to withstand the law of the market does not apply to the working class and the poor.

We are convinced that these same policies heralded by the Minister as our safeguard has hardly benefited the working class and the poor. Indeed, none of the targets of the millions of jobs, houses, restitution etc. were realized. Instead, an insignificant number of jobs as compared to the unemployment levels were created. In our sector - retail, wholesale and hospitality - in particular, where large numbers of jobs were created the quality of the jobs are poor and the nature of the employment contracts are largely casual with no job security or benefits. This incidentally, were mainly based on what appears to have been a consumer boom currently receding, which was driven by an emerging, but still very small black middle class accessing easy credit. This consumer boom itself has been given severe knocks by a range of increases in interest rates, spiralling inflation rates, particular on food and transport where the bulk of the working class disposable income is going to. This of course has been worsened by the forever increasing prices of fuel, food and transport. In our sector the trend has been a steady decline in growth levels. In this regard we have noted large numbers of repossession of cars and houses purchased by this emerging middle class. A recent newspaper report indicated that as many as five hundred homes are being repossessed per month and as much as R19 million worth of cars are being auctioned per month.

All these developments are worsened by the bungle in the government's historical approach to build the necessary electricity capacity in the face of the knowledge of an impending crisis for more than five years. A bungle arising from GEAR and the intention to privatise ESKOM. We're convinced that the neglect of building the necessary capacity are directly linked to the then impending privatisation of ESKOM. We're wary about the Department of Public Enterprises, under the leadership of Minister Alec Erwin, recent support to the ESKOM 53% increase to the electricity tariffs. This appears to be a continuation of the attempt to garner support for the privatisation of ESKOM on the basis of the false argument, often forwarded by those supporting privatisation, that competition will lead to improved provision of services by public utilities. Of course, the state of ESKOM today will mean it will be privatised far below its value or potential. If the support by the Department of Public Enterprises of the ESKOM request for this unbelievably astronomical increase is part of a strategy to re-introduce the future privatisation it will undo all the struggles, by COSATU and progressive civil society halt the privatisation of public utilities. This will basically mean that what we must be vigilant about is a deliberately intention to once again smuggle the privatisation of ESKOM in through the back door. We reject this increase and call on all members to join campaigns against this measure which will only cause more hardships to the working class and the poor.

We're also aware that bosses will use these issues above to try and contain wage increases; despite the growing impoverishment of the working class as a result of the spiralling of prices.

In the run-up to our elections of shopstewards, the re-launching of Locals, the Regional Congresses and culminating too our 9th National Congress scheduled for 17 - 20 September 2008, our organization will consider all these matters in addition to the other regular Structural organizational matters.

Finally, we aware of concerted union-bashing tactics by many in the wholesale and retail sector, particularly Woolworths, who now for years have thrown technical obstacles into re-negotiating the relationship agreement. We recommit ourselves to defending our members at Woolworths and will utilize everything at our disposal to end the union-bashing at Woolworths and all other companies.

We call on our members to actively participate in all structures of the union as we prepare for challenging the political and economic situation.

We call on our members to actively participate in the Federation and the Alliance structures to advance the interests of the working class and the poor.

We call on all members to actively participate in campaigns confronting the challenges faced by the working class and the poor.

We call on government to seriously consider the implications for the workers and poor, and carry its mandate from the Polokwane Conference.

We warn bosses not to use the current political and economic situation or landscape as the basis for resisting reasonable increases demanded by the workers.

We warn bosses to desist from retrenchments using the current political and economic landscape

We reject any consequences where ESKOMS's load-shedding as translate into job shedding.

We demand decent work and an end to