Since 1995, when government began to keep the statistics,
the unemployment rate has soared from 16% to almost 30%, using the
narrow definition that does not include people who have given up
looking for work. The worst hit are young people, with unemployment
at 48% for people under 35 years old. If the expanded definition
is used - that is, counting the number of people who have given
up searching for work, then unemployment rate stands at 41%.
Meanwhile, in the past year, the price of maize
has practically doubled. That imposes huge hardships on workers
and their families. All the evidence is that the price is being
kept high by speculation by some large growers, silo owners and
traders - at a huge cost to all our people.
Government has tried to improve service for the
poor, extending housing, water, education, healthcare, policing
and welfare grants to black communities. But now we face the threat
of privatisation, which will undermine progress in these areas.
Already we have seen:
-
Telkom cutting off a third of new connections
for the past three years, because people could not pay for them
- and now that Telkom is 30% foreign owned and 49% privatised,
it has to care more about profits than about development. Government
set targets for connections, but could not ensure they are maintained.
-
The commercialisation of Eskom resulting in
mass cut offs from electricity in Soweto. At the same time, government
is planning to sell 30% of electricity generation. Its own projections
indicate that this could lead to even higher costs to households.
It says it will control them through regulation - but the Telkom
experience shows how hard that can be.
-
The privatisation of water management by some
local governments, leading to higher fees, worse quality and,
for the poor, continued lack of access. In Dolphin Coast, privatisation
of water led to a 15% increase in household costs. Durban has
seen even higher price increases as well as corruption with the
contracting out of water management.
-
The partial privatisation of schools through
the system of school fees, which effectively humiliates millions
of children and keeps hundreds of thousands out of school altogether.
Then we are told that people can't get jobs because they don't
have the skills the economy needs.
-
The partial privatisation of our hospitals.
Some plan to rent beds to medical schemes, creating a two-tier
system where the rich will get better treatment. In KwaZulu Natal,
the management and provisioning of an entire hospital has been
outsourced; in many hospitals, so-called support services like
laundry and security are outsourced - and the quality of the service
has declined.
-
Attempts to privatise the ports by concessioning
management to the private sector. This is happening even after
SATAWU forced government to recognise that the costs of privatising
rail lines far outweighs the benefits, even in financial term.
We could continue this list for much longer. The fact
is that these privatisation programmes could undermine all our gains
since the transition to democracy. It robs the state of the economic
power to meet the needs of our communities and restructure the economy.
COSATU unilaterally suspended its action against privatisation
in the run up to the Alliance Summit hoping that government will reciprocate.
The Summit proposed meetings to decide on a way forward to a Growth
and Development Summit. That would have let us develop a common development
strategy as the Alliance, and in the process deal with privatisation.
Unfortunately, since the Alliance Summit government
has not made any changes in its privatisation plans. Instead, it is
forging ahead with its initial proposals. Meanwhile reports suggest
that at least one official was lining his own pockets from the privatisation
process. In light of these circumstances, COSATU has called for a
General Strike For Jobs - Against Privatisation and Poverty!
Our demands
Our strike will demand a clear programme to create
jobs and end poverty and privatisation.
End Privatisation!
We demand an end to privatisation of basic services,
especially water and sanitation, welfare, electricity, and basic health,
education, transport, telecommunications and cultural facilities.
By privatisation, we mean any move to involve the private sector or
commercialise these services. Where government plans to restructure
its assets, it should undertake a proper, systematic study of the
impact on services for the poor and on employment, as well as on investment
and the overall income distribution.
Government must work with us to make the NFA function,
by re-affirming its legal status and application to all parastatals,
including liquid fuels and the ports, and by demonstrating a commitment
to reach agreement on restructuring - not just to consult with no
intention of listening.
The parastatals must contribute to a substantial improvement
in infrastructure - water, electricity, telecommunications and transport
- in our communities, at affordable rates.
Relieve poverty and hold
down the maize price!
We demand public works and community development programmes
on a mass scale, creating jobs especially for the youth. We can create
tens of thousands of positions building and repairing infrastructure
like roads, schools and clinics, and caring for people with AIDS,
children and the elderly. We need rapid design and roll out of these
programmes to provide immediate relief for the jobless, help develop
skills and give our young people, in particular, a chance to contribute
to society.
A 95% windfall profits tax for all producers and sellers
of maize would take away the superprofits earned from speculating
in maize - and the profits could be used for poverty relief. Government
must urgently expand feeding schemes, including stronger school feeding
schemes, food supplies for people with HIV and the elderly, and the
distribution of maize in the poorest communities.
Government must begin to implement the proposals of
the Commission on Comprehensive Social Security on social grants.
The Commission called for an expansion in the child support grant
and ultimately introduction of a Basic Income Grant.
Programme of Action
We have asked business and government to engage on our demands at
NEDLAC. But we need to show our strength and determination if we expect
that engagement to lead to any firm results. For that reason, COSATU
has set up the following programme of action.
The Financial Sector Summit will take place on August 20. Although
we have made some important gains, business must be pushed to implement
the agreements. Together with the SACP, we will hold a mass rally
outside the Summit.
The World Summit on Sustainable Development is taking place at the
end of August. There will be a huge civil society and Alliance demonstration
on August 31, where we will show the leaders of the world our determination
to fight for a future for ourselves and our children. Come and demonstrate
against privatisation!
We will work with civil society organisations to set up a programme
of pickets at retail stores, demanding a reduction in food prices,
starting in September. The detailed programme of action is covered
in the Shop Steward.
Build our unity - build our strength
We call on all COSATU members to build our mass movement for jobs,
against privatisation and poverty. Every shopsteward, every member,
every office bearer must help with educational work and mobilisation,
not just in the unions, but with civil society as whole.
Finally, the newly amended Labour Relations Act and the Basic Conditions
of Employment Act came into force on the 1 August 2002. The Minister
of Labour launched the new laws in a public ceremony in Gallegher
Estate on 29 July. As stated in previous editions of the shop steward
these amendments represented a profound and significant victory for
workers.
