COSATU could still challenge SANLAM in court over its attempts to demutualise. At its CEC held in October, COSATU vowed to continue its campaign against the demutualisation of Old Mutual and SANLAM.
COSATU believes that the voting procedure that they used was unfair. In terms of this, a group policy with thousands of members worth millions of rand (or even billions) had just one vote – the same number of votes as that given to an individual who has just one policy worth much, much less.
COSATU is also concerned "that all South Africans, particularly the policy holders, need to be told of the implications of the proposed demutualisation and listing on the transformation of the South African economy."
"We call on Old Mutual not to continue to use policy holder money to campaign for demutualisation. To an extent that they continue on this route, we call on them to make an equal amount available for a campaign against demutualisation. These should appear side by side - be it in advertisements or letters to policy holders", says COSATU.
COSATU questions Old Mutual’s neutrality on this matter. It wants management to explain how they stand to gain from demutualisation. In other countries, management has used such schemes to enrich themselves.
In addition, COSATU says it will continue to raise the following issues:
COSATU still believes that the proposed restructuring will have a negative impact for a number of reasons:
Instead COSATU says that these companies should remutualise. This "would not preclude shorter term developmental and job creating measures such as those to be financed through the envisaged Umsobomvu Trust. In fact we believe that it is possible to address the questions raised by the two companies - globalisation and the unlocking of the reserves - through new legislation without going the route of demutualisation."
Meanwhile SANLAM has just passed the final hurdle to demutualise. 99% of those SANLAM policyholders that voted, voted "yes" to demutualise. And the High Court has also approved SANLAM’s demutualisation.
"We call on all those who hold policies with Old Mutual to reject this route", says COSATU.
The second Ditsela Educator Conference took place from September 16 – 19, 1998 in Johannesburg. Over 150 delegates attended the Conference. The majority of delegates were educators (full or part time) from Cosatu, Fedusa and their affiliates. Other delegates came from the Labour Service Organisations (LSOs) and international trade union organisations. Guests and speakers from the Department of Labour, funding organisations, federations and unions, the Gender Commission were also present.
Chris Bonner, Ditsela Director, reports:
A child had fallen down a ventilation shaft of an old coal mine. The villagers did not have a long enough rope with which to pull the child out. They had only two short ropes. The child was becoming weaker and weaker. The villagers were becoming frantic. Then they heard a tired little voice from deep down in the hole-"tie the ropes together - tie the ropes together".
This story told by one of the international delegates, illustrates one of the major messages to come out of the second Ditsela Educator Conference:
"Tie the ropes together – build on the past and strengthen the present: build unity in, and through, education".
A second important message coming from the Conference is illustrated by the Conference Theme – New Ways of Seeing- New Ways of Doing:
"Be prepared to respond to change and challenges creatively and constructively".
Why are these two messages important?
Conference identified that trade unions locally and internationally are operating in a harsh economic, and often harsh political, climate. This means that:
The 1997 Educator Conference focused on building a common framework for trade union education in South Africa, including a common vision and principles, a model for a trade union education system and an approach to recognition of trade union education.
In 1998 the focus switched to the people who "do" education – the educators themselves. Educators were encouraged to express themselves through the writing of papers on "new ways of seeing" trade union education. These papers were then discussed in four separate workshops where new ideas and action suggestions were generated. So many ideas came out of this process that a five year education programme could be developed!
Our international guests from Korea, Nigeria, Britain, USA and Southern Africa (Zimbabwe, Zambia, Namibia) added to the different "ways of seeing" and gave inputs on challenges and trade union education in their countries – either in the plenary session or in the workshops.
Delegates also saw many new things in the wonderful exhibition that was set up jointly by Ditsela, unions, federations and LSOs. It included high-tech exhibits such as the cyber café, where web sites could be viewed. Viewers could also see worker-generated exhibits such as worker histories written by participants on the Ditsela Advanced Trade Union Studies for Women course.
Extract from poem The Educator |
The Conference then switched to the "doing" of education, and various methods and mediums were explored. Participants in four workshops produced educational "material" or an educational activity. These were presented in a plenary session where all delegates were treated to:
Another "new (or revived) way of doing" emerged from the Conference. Worker poets presented their poetry and even developed their own "booklet" of poetry during the Conference. Poetry proved to be extremely popular amongst delegates, and is clearly a method of trade union education that should be developed.
The Conference ended by looking at progress made over the past year in "building a worker education movement" (1997 Conference theme) and at the problems encountered in funding trade union education.
From the many ideas and issues generated in the Conference, we need now to reflect on how we use these in the further development of effective trade union education which contributes significantly to building a strong labour movement.
Conference wall creations
For 3 hours, delegates at Ditsela’s conference were encouraged to think of their own union offices and how to use their walls to:
The results were fantastic!
We had a historical wall, an information wall showing what services different service organisations provide, a gender wall that educated and provoked debate, a mixed wall separated into a number of themes.
Delegates showed how wall newspapers can be used to provoke debate and as an education tool. ‘New ways of cooking’ was the caption one group put above a picture of a man, stirring a pot on a stove, dressed only in an apron! Everyone looked first at the man’s bare buttocks. Below the picture was a short educational story about gender oppression!
They also showed that the use of pictures can help with the problem of illiteracy. One group had a simple statement on their ‘wall’:
‘Wanted: a women general secretary’. Around this statement they placed photos of all the Cosatu affiliates general secretaries – all of them men!
Using wall newspapers to assist organisation
The message at the end of the day was: Yes, we must have well run offices. And if wall newspapers are thought out carefully, they can help the officials do their job. If officials are busy on the phone, they can point members to the wall where they will find the information that they want. Or members can read information that catches their eyes on the walls while they are waiting.
And if unions can put up wall newspapers in their offices – what is to stop shop stewards from doing the same thing with their own noticeboards in the factory?
Let’s hear from you!
Reclaiming the wallsDull, dreary local office walls could be brightened up if delegates at Ditsela’s conference "reclaim their office walls" when they get back to their offices. The idea of ‘wall newspapers’ has been floating around for many years. Tons and tons of information comes to union offices but it lies unread because union officials don’t know what to do with it when it arrives. If union offices are lucky enough (or unlucky as it turns out!) to have photocopy machines, the information is photocopied for the officials, the office bearers and sometimes even the shop stewards. But how many people ever read beyond the first dull, grey page. And yet, the local union office is where the union comes face to face with its members. But if you go to a union local office, what do you see: some old posters, outdated notices on brown, prestik-marked walls. Sometimes you see bright, white walls and clinical offices empty of everything – are these any better? And sitting around, or standing, wasting their time, are union members – waiting to be helped, waiting to find out the answer to a small question like "Comrade, when is my case going to court?" The administrator looks anxiously out to see the growing queue of workers, she is the only one to help them, her frustration grows and workers’ irritation grows. Is there any difference between this office and the local government office, the bank, the local police station? |
A Victory of Workers?
Can the new Employment Equity Bill tackle this country’s record of having the most unequal distribution of income in the world?
In our workplaces:
COSATU's support for the Bill
COSATU supported the underlying philosophy of the Bill because it:
This plans must:
COSATU's concerns
COSATU had 2 key concerns about the Bill:
COSATU's proposals
COSATU proposed amendments to deal with both these concerns. It said that employers should do an analysis /audit of the wage differentials between all occupational levels and implement measures to close such differentials as part of their employment equity plans.
After lengthy negotiations a new formulation was developed. This said that employers must attach a statement showing remuneration and benefits received in each occupational category and level of that category’s workforce. Employers must also progressively reduce the wage gap.
COSATU proposed that companies whose turnover is above a certain threshold should also be covered, even if they employed less than 50 employees. It has now been agreed that those companies whose turnover is over R10 million a year must comply.
Those companies with less than 50 workers and below this turnover must still take steps to "promote equal opportunities".
Enforcement of the Act
An employer can be fined from R500 000 up to R900 000 if s/he contravene sections of the law. But unless workers on the ground pick up that employers are contravening the Act, it will be very difficult for the Director General of Labour to catch the employer.
Parliament has passed the Bill. It is now waiting at the NCOP. In the meantime, shop stewards need to:
"The Western Cape will be brought to a standstill should steps not be taken by the provincial government to secure its citizens in black working class areas like Guguletu, Michells Plain, Hanover Park and Wynberg."
That’s the message from Cosatu Western Cape after physical attacks by unknown assailants on various leaders of the democratic movement over the past few months.
In the most recent attack,
Num official, cde Mario Wanza, was assaulted by 5 masked gunmen at his house on a Saturday night.
"As Cosatu we condemn all acts of violence and intimidation and believe it to be the last desperate acts by fringe groups who find themselves becoming increasingly marginalised", says Cosatu.
Cosatu does not know who is responsible for the attacks but says it could be:
Placing the problem firmly at the feet of the provincial government and the police, Cosatu says that "police resources … are still designed to defend white privileges with no regard for equity or the defence of black people’s lives."
Cosatu has now demanded that:
Cosatu has told the provincial government that if it fails to address its demands by October 27, Cosatu will file a section 77, LRA application and embark on protest action "until our demands are met".
(Since early this year, Cosatu members have been taking a high profile stance against violence and crime by travelling and talking to people on trains and in other areas. (more details in the next Shopsteward)
Strike figures are up this year because of a number of big national strikes that stretched into weeks – Tgwu early this year, Cwiu and then Numsa.
Long drawn-out strike action not only frustrate workers, but also make a speedy negotiated settlement very difficult and sometimes lead to workers venting their anger onto non-striking workers.
Cosatu does not condone any violence that has accompanied some of our strikes even though these have been isolated incidents. We believe that this can be avoided if employers move from the current intransigent mood to one committed to real negotiations. The employment of scab labour in industries where workers are on strike has also inflamed the already vulnerable situation.
While we accept that the Labour Relations Act allows employers to employ scab labour, under the disguise of replacement labour, we maintain that this exacerbates the problem as it effectively minimises the efforts of employers to work towards reaching a settlement. Our argument has been vindicated. This year we saw prolonged negotiation disputes with employers opting for the unconstructive route of hiring scab labour.
It is unacceptable for employers to plead poverty whilst at the same time placing expensive advertisements to advance their arrogant positions. It is extremely outrageous for employers to set pre-conditions for negotiations to take place. We believe that the attitude portrayed by most employers in the current wage negotiations is in line with Business South Africa's ‘Growth for all’ plan. They are calling for labour market flexibility, lower wages and a wage freeze.
Their attitudes are just another form of downward variation, because they are tending to offer nothing above the current wage levels. This undermines the collective bargaining clauses covered by the Labour Relations Act. It is typical of South African employers to hold on to the past even when there are new laws that seek to minimise the number of disputes. The approach by Samiea, that of offering increases only on minimum rates of pay, means that most workers may not receive any increase at all.
We call on all our members to embark on peaceful demonstrations and not to allow themselves to be provoked into acts of violence.
Cosatu calls on unions and employers involved in negotiations to embark on a settlement route with renewed vigor. We also urge employers to respect the picketing rules as outlined in the Labour Relations Act. This needs to be negotiated between the union and employers.
We further call on the international trade union movement, in so far as they have links with companies involved in disputes, to embark on solidarity protest action.
FAWU
Fawu members organised in Clover and Dairy Bell are on strike.
In Clover, the union demanded an increase of 8% or R300, whichever is the greater. The company offered 7% across the board or R190, whichever is the greater.
The union gave Sacca notice (in terms of Section 66 (2)(b) of the LRA) of its intention to embark on a secondary strike in support of Clover workers. Discussions were being held with Saccawu for support, as they also organise in Sacca.
The company issued notices of intention to retrench Fawu members in most of their plants. This was viewed by the union as an attempt to undermine the strike as well as a clear abuse of the Labour Relations Act.
Meanwhile Fawu members organised in Dairy Bell embarked on a protected strike on 28 September. About 2000 workers are involved.
The union demanded an increase of 7% and R1600 minimum to be implemented from 1 June 1998. The company offered increases ranging from 3.3% - 7% to be implemented from 1 October 1998.
At the time of going to print Fawu was discussing the possibility of organising a secondary strike in support of these workers.
NUM
Mineworkers in different mining sectors are striking for a living wage and the closing of the apartheid wage gap.
At the time of going to print workers at Newcastle Diamond Cutting had been striking for six weeks. The strike was prompted by a range of issues including wages, the issue of recognition agreement negotiations in line with the LRA, and whether substantive issues are negotiated at central or plant level.
NUM’s position is that negotiations should take place at plant level.
At Westplats in Rustenburg, the key leadership was suspended for 12 months, while one was dismissed after management claimed that union leaders had held them hostage during wage negotiations.
Num has appealed against management’s decision.
SACCAWU
About 4,000 Saccawu members in the Edgars group (Jet Stores, ABC, Cuthberts, Sales House, Edgars)
are on strike. During this year’s round of wage negotiations, the company announced a loss of 28% of their profit base in the previous financial year and on this basis declared a wage freeze. But workers are questioning why they must accept a wage freeze when their directors recently awarded themselves a 20% pay rise!
Saccawu says profit margins at Edgars Group are very high and in most instances they source their merchandise abroad. With the lowering of tariffs since 1994, the company is making a large profit. However, this is still not benefiting customers who continue to see higher prices than many other clothing retailers who source the bulk of their merchandise locally.
At the first meeting between the company and the union, the company walked out of the negotiations before they even started, threatening that unless the union agrees to remove the question of wages and other demands which have cost implications, it would not start negotiations with them.
This clearly sets a very bad precedent and undermines the fundamental principles of collective bargaining.
The strike is a national one, with all eight regions participating. Union members from other unions - Fedcraw and Nudaw - are also participating in the picket lines.
Police harassment
The strike has taken an ugly turn with workers being shot at and abused by the police.
Members have also been arrested in various centres, with the Randburg court setting bail at R5000 per person. The union is considering suing the Minister of Safety and Security for this appalling behaviour. Some white SAPS members literally became a danger to the strikers and dragged customers into the stores where workers were picketing.
At the time of going to print the unions and Edgars were to go to mediation in an attempt to settle the dispute.
First motor strike in 50 years
Low wages and wretched working conditions caused the five week motor industry strike by 50 000 NUMSA members in garages, panel beating shops, components factories.
The strike set a number of firsts:
The battle was an attempt to end poverty wages and to get real wage increases on workers’ actual rates of pay. A worker on the lowest grade earns as little as R560 per month – a figure below the Poverty Datum Line.
The strike forced many car manufacturing companies to close down because of a lack of components and many petrol stations became self-service.
The agreement
The motor sector is covered by a Bargaining Council. More than 19000 employers who employ more than 160 000 workers fall under this Agreement. The Agreement sets out working hours, minimum rates of pay for different jobs, sick leave and so on. The Agreement has never granted wage increases on workers’ actual rates of pay but only on the minimum rates of pay.
While employers refused again to give increases on actual rates of pay, they did agree to set up an Industry Policy Forum where this issue, and the restructuring and transformation of the industry, will be negotiated. Other details of the agreement are:
Legal victories
Major legal issues were fought and won in the labour courts. These will have positive spin-offs for future strikes by workers and their unions in all industries across the country.
Courts have said that:
Even though Numsa negotiated picketing rules with employers, once workers were legally locked out, problems did arise. There are allegations that some police showed unnecessary force.
NUMSA intends to investigate the possible launching of civil action against the South African Police Services. These actions will advance the cause of labour and educate those who ought to protect workers rights and not denigrate them.
Dumisa Ntuli, Numsa information officer
Iscor workers down tools
Iscor’s 18 000 workers country-wide – including the Mynwerkers Unie, Numsa and other unions in Iscor, downed tools in a wildcat stoppage recently over Iscor managers gift to themselves of R8,4 million. One manager allegedly received more than R280 000 and the CEO – R1,7 million.
This came just a few months after the same management announced a dramatic down-sizing of Iscor plants that would result in just one plant being reduced from 14250 to 8000 workers to save costs and to make the company viable!
Talks with Iscor are continuing.
Dumisa Ntuli, Numsa information officer
Wage gap grows!
"Between 1994 and 1997, average monthly pay for workers grew by 55%. For executive directors it grew by 106%." That’s according to Cape Town based labour research organisation – Labour Research Services.
Recent strikes at Edgars, Iscor and at UWC in the Western Cape have all centred around the ‘wage gap’.
While South African managers and directors are the first to compare their pay and bonus packages to their counterparts in Germany, England or other developed countries, when it comes to South African workers, they use a different yardstick.
They compare South African workers’ pay with workers in less developed countries. Of course South African workers earn more than their counterparts in less developed countries, so workers are told ‘tighten your belts’.
While workers know exactly what they take home, there is no transparency on take home pay of directors and no law requiring companies to reveal this.
The Johannesburg Stock Exchange has developed a code of conduct for listed companies – those companies that trade their shares on the stock exchange. This code spells out what companies should disclose, including directors’ fees. But it is up to companies to disclose how much, or how little, to tell their shareholders.
Perhaps it is time for shareholders and workers to form an alliance to ensure that both parties benefit!
CWIU
A 4 week strike by about 40 000 chemical workers in August, has resulted in new moves to form a bargaining council for all 7 sectors (plastics, consumer chemical, petroleum, industrial chemicals, pharmaceuticals, industrial rubber and glass) that went on strike. Prior to the strike each sector bargained separately in an informal centralised bargaining forum????.
During the strike, workers created new ways of solidarity. Like the Numsa strike, the Cwiu strike also established important new legal precedents for workers across all industries. Cde John Appolis Cwiu branch secretary (???) reports.
Background
This was the first national strike in the chemical industry. More importantly, the Union entered the national strike with almost 80% of its shop stewards newly elected early this year.
The features of the solidarity
Workers displayed a high sense of solidarity:
Workers grouped themselves according to industrial areas. They assessed the strong and weak factories, targeted the weak ones and strengthened the ones where employers were on the offensive. All workers in a particular industrial area marched and sometimes occupied selected factories. Workers from the targeted factory did not participate in these actions as they could be charged with misconduct.
This solidarity bolstered the workers in the area, multiplied the pressure on employers, broke workers’ isolation from one another and presented a formidable force against scab labour.
Salaried staff, administrative and clerical workers, laboratory assistants, those that fall outside the bargaining unit, also took part in the strike. They did so knowing that they would not benefit from the issues under dispute and threatened with dismissal from employers who claimed the strike did not protect them.
Workers put collective pressure on employers to protect these workers. And the Union took their case to Court. Recently the Labour Appeal Court confirmed that even though they do not fall under the Bargaining unit, the fact that they are employed in the same factory as other Numsa members and are members of the Union that is on a legal strike means that they are protected.
Temporary and contract workers also took part in the strike. When employers threatened them with dismissal, we also took their case to Court. The same Labour Appeal Court ruled that they too were proteced.
This judgment is a major victory for both temporary, contract workers and those not in the bargaining unit.
The Union also called out those members who were not part of the centralised bargaining process on a legal sympathy strike. In a few plants we refrained from embarking on a sympathy strike because of the absence of a sufficient link.
Obstacles/difficulties
The strike showed up a number of difficulties:
We did have a united programme of action with Sacwu. But Sacwu went on strike 2 weeks before us and returned to work when we were about to enter our second week of striking. This created many problems - Sacwu reached their own separate wage agreements and employers attempted to use these as benchmarks for the whole industry.
Our Union adopted a very principled position on the strike and Sacwu. We said that where we share a factory with Sacwu and we find ourselves in a minority, then our members must strike with Sacwu.
We wanted the same approach from Sacwu but we didn’t get it. In fact, when Sactwu settled and returned to work, they did not even have the decency to inform us. Where they were in the minority, they worked whilst our members were on strike. The Union will have to look at this lack of solidarity in the chemical industry.
After the strike was over, employers started targeting and dismissing those that had been the most militant and active shop stewards and workers during the strike for alleged misconduct. They also targeted temporary and contract workers for dismissal.
The new LRA says we can’t strike over dismissals, so workers’ hands are tied. They have had to watch helplessly as employers attempt to break the organisation by taking out shop stewards and militant workers. The Union has had to place our hope on the outcome of arbitration but in the meantime the union is being weakened.
There was little solidarity within the federation. In some instances, there was a real potential for conflict between our members and members of another Cosatu affiliate. Cosatu needs to address this urgently. Perhaps the recent CC’s decision to formulate a role for Cosatu in the process of collective bargaining can help to bring about a culture of solidarity.
Conclusion
The global meltdown of the capitalist system is going to place more pressures on workers as capitalists struggle to keep going. We do not have a choice but to build on the solidarity like that achieved in the Cwiu strike, both internally and across the globe, to resist this attack.
The first national strike by 40,000 chemical workers in August, has led to some real improvements in wages.
Workers from 7 sectors (plastics, consumer chemical, petroleum, industrial chemicals, pharmaceuticals, industrial rubber and glass) went on strike.
During the strike, workers created new ways of solidarity. Like the Numsa strike, the Cwiu strike also established important new legal precedents for workers across all industries. Cde John Appolis, Cwiu branch secretary reports.
The features of the solidarityWorkers displayed a high sense of solidarity:
Workers grouped themselves according to industrial areas. They assessed the strong and weak factories, targeted the weak ones and strengthened the ones where employers were on the offensive. All workers in a particular industrial area marched and sometimes occupied selected factories. Workers from the targeted factory did not participate in these actions as they could be charged with misconduct.
This solidarity bolstered the workers in the area, multiplied the pressure on employers, broke workers’ isolation from one another and presented a formidable force against scab labour.
Salaried staff, administrative and clerical workers, laboratory assistants, those that fall outside the bargaining unit, also took part in the strike. They did so knowing that they would not benefit from the issues under dispute and under threat of dismissal from employers who claimed the strike did not protect them.
Workers put collective pressure on employers to protect these workers. And the Union took their case to Court. Recently the Labour Appeal Court confirmed that they were protected.
Temporary and contract workers also took part in the strike. When employers threatened them with dismissal, we also took their case to Court. The same Labour Appeal Court ruled that they too were proteced.
This judgment is a major victory for both temporary and contract workers and those not in the bargaining unit.
Obstacles/difficultiesThe Union also called out those members who were not part of the centralised bargaining process on a legal sympathy strike. In a few plants we refrained from embarking on a sympathy strike because of the absence of a sufficient link.
The strike showed up a number of difficulties:
We did not have a united programme of action with Sacwu. Sacwu went on strike 2 weeks
before us and returned to work when we were about to enter our second week of striking.
This created many problems - Sacwu reached their own separate wage agreements and
employers attempted to use these as benchmarks for the whole industry. Our Union adopted a very principled position on the strike and Sacwu. We said that
where we share a factory with Sacwu and we find ourselves in a minority, then our members
must strike with Sacwu. We wanted the same approach from Sacwu but we didn’t get it. In fact, when Sactwu
settled and returned to work, they did not even have the decency to inform us. Where they
were in the minority, they worked whilst our members were on strike. After the strike was over, employers started targeting and dismissing those that had
been the most militant and active shop stewards and workers during the strike for alleged
misconduct. They also targeted temporary and contract workers for dismissal. The new LRA says we can’t strike over dismissals, so workers’ hands are tied.
They have had to watch helplessly as employers attempt to break the organisation by taking
out shop stewards and militant workers. The Union has had to place our hope on the outcome
of arbitration but in the meantime the union is being weakened. There was little solidarity within the federation. In some instances, there was a real
potential for conflict between our members and members of another Cosatu affiliate.
Perhaps the recent CC’s decision to formulate a role for Cosatu in the process of
collective bargaining can help to bring about a culture of solidarity. Conclusion The global meltdown of the capitalist system is going to place more pressures on
workers as capitalists struggle to keep going. We do not have a choice but to build on the
solidarity like that achieved in the Cwiu strike, both internally and across the globe, to
resist this attack.
The privatisation of water reached crisis levels recently with Cosatu threatening strike action in Nedlac.
This is what has happened in Nelspruit. Private water company, Biwater, is to take over water provision for the area. But it will also get a subsidy for the next 30 years from the Nelspruit municipality. Out of this subsidy it must provide water and draw its profit.
The Cosatu CC in June came out strongly to say that it believes that this is not the only option for water provision. Already Samwu is exploring alternative options.
Public-public partnerships
In the Eastern District Council in the North West province Samwu has worked closely with the council and Rand Water Board to set up "public-public partnerships" as an alternative to privatisation.
At ODI Water Supply in the North West Province, a public-public partnership is underway between the Eastern District Council and the Rand Water Board.
The Rand Water Board has taken over the responsibility of building the capacity of the existing workforce and infrastructure of the Eastern District Council for the next three years. At the end of the period, everything will be handed back to the Eastern District Council.
In Cape Town, the "in-house option" is being tried. Since November 1996, there has been a process of integrating the different water departments in the new Metro council.
Through a series of meetings, Samwu and waterworks management steadily re-allocated existing resources and workers, identified and fixed infrastructure problems with the result that hundreds of new standpipes and a general extension of water was achieved by March this year, in all areas throughout the metro.
"The process of integration was not simply dealt with as a mechanical exercise. It was done with the explicit aim of extending and improving the water services," says Lance Veotte, Samwu's Water Sector Co-ordinator.
Both Samwu members and management willingly sacrificed a lot of their own time to reach the goal of total transformation, and both parties have indicated that they will continue to work together to maintain and extend water delivery further.
However, this process was nearly derailed by the Department of Community Development (DCD). It threw two million rand at a task team for the purposes of hiring consultants to investigate a public-private partnership for the Metro.
When asked if that money could rather be invested in waterworks infrastructure, Minister Moosa told Samwu that "the fund which we have for public-private partnerships will only be used for that purpose. It can't be that municipalities are allocated money from that fund and then use it for something else."
Samwu has also been involved in another exciting project in Cape Town with the Departments of Water and Forestry. A project to fix all leaks in Ikapa Homes in areas like Guguletu, Nyanga free of charge is being launched in early November. (More in the next Shopsteward)
Public-private partnerships
Since April last year Samwu has been fighting against the privatisation of water in Nelspruit and the Dolphin Coast. In both these areas millions of rands of government money has been used for consultants and the tender process to privatise the water but public-public partnerships and the in-house option were never once considered.
When Samwu tried to resist these public-private partnerships, DCD said that too much money had already been spent on the privatisation process to back track.
As Shopsteward went to print, Cosatu’s CEC had just endorsed a draft framework on the restructuring of municipal service provision between it and government. The framework sets out principles of service delivery and regulates the involvement of the private sector only where government cannot deliver.
Anna Weekes
Samwu media officer
The long awaited Presidential Jobs Summit will at last take place at the end of October. In his address to parliament early this year, President Mandela described the Jobs Summit as one of the most significant events since the 1994 democratic elections. It has the potential to unify the country and offer hope to the majority of workers - most of whom are referred to as the working poor - and the unemployed.
The federation, as part of the labour caucus in NEDLAC, has put forward a number of proposals which are aimed at creating jobs, stemming job losses and creating a climate within which further discussions on macro-economic issues can take place.
However; you cannot create jobs, stem job losses, grow the economy 6~ deal with poverty and unemployment unless you have a framework that creates and permits such conditions.
As a federation, we make no apologies for putting forward a bold plan necessary for job creation. We believe that solving the unemployment crisis is critical if we are to have a stable society. Unemployment is the root cause of poverty, crime and other social ills which poverty breeds. Unemployment is caused by a long history of mismanagement of the economy, de-skilling and under-development and an ongoing shortage of sustained investment in infrastructure and industry. The Presidential Jobs Summit can be useful to address this situation.
However, for it to succeed will require bold vision, innovation, political will and support by the majority of South Africans.
Our interests as workers - both organised and unorganised - and those who depend on us, the bulk of whom are unemployed, are materially linked to the success of the Summit.
The Summit must succeed in creating new jobs and consolidating and improving the quality of working life in South Africa.
Labour has proposed that workers donate a day's wage as workers to this worthy cause. COSATU has suggested a day in March 1999. Let's carry out these revolutionary ideas for the sake of our country.
We are going to the Summit willing to commit workers' money - be it from a day's wage, from our retirement funds or redirecting our investment companies into social and productive investment -
so too must the government and business contribute. I think it will do them a lot of good were they both to put money into reconstruction and development.
1999 Elections
The elections campaign has started in earnest We will use future editions to outline in detail what we are doing as COSATU to ensure that our future is
secure. But if you want to vote:
Even President Mandela will not be allowed to vote if he has no bar coded ID and if he has not registered as a voter. I have a bar coded ID, so I will register as a voter at the end of November. Then I will be able to vote. Make sure all of you do the same.
SASBO Congress
A few weeks ago SASBO held its national congress. It was a first of its kind. Some voices called on SASBO to suspend its affiliation to COSATU, but the overwhelming majority had no doubt that their future lies inside COSATU and the motion was defeated.
This is a sign that workers in SASBO are willing to take bold steps to safeguard their future in the federation and to continue to influence policies in COSATU through effective participation.
Mbhazima Shilowa
General Secretary
On October 30, the long-awaited Jobs Summit will take place. As Shopsteward went to print, a number of framework agreements had been agreed to while other bilateral agreements were still tentative. While significant progress has been made in some areas, some critical questions remain unresolved. In this article we set out labour’s position as at October 16. Find out the final details of the Jobs Summit from the press, radio, your local union office.
Background
As part of labour’s preparations for the jobs summit, it put forward proposals on:
Macro-economic issues
Labour has argued for the adoption of a macro-economic declaration drafted by one of the Working Groups. The group has identified the key elements of an appropriate, employment generating macro-economic framework. This includes aspects of macro-economic policy which need to be adjusted to meet this objective, including investment policy, fiscal and monetary policy, taxation, regulation of the financial markets, and maximum use of public sector resources to these ends. A tentative agreement has been reached.
Financing mechanisms
Labour proposed the following seven financing mechanisms:
There is in-principle agreement with government on a post-summit process to look at restructuring of the public sector pension fund, to release resources for employment creation and social investment.
There is no agreement on labour's proposal for legislation to be introduced to require all retirement funds and the insurance industry to invest a prescribed portion of their assets in housing and other employment generating projects. However, there is an in-principle agreement that a mechanism is needed to channel these funds into these projects.
Labour is still waiting for government to revert on the other finance mechanisms it proposed. Labour has to give more details on its proposal for the proceeds of one day’s output to be channeled into a job creation fund. COSATU's October CEC agreed that a normal working day in February 1999 should be set aside for this purpose.
Programmes and projects for job creation
A National Public Housing Programme
A framework agreement is close to finalisation on a Presidential Lead Housing Project aimed at the delivery of affordable mass public housing for rental. An initial pilot project is proposed to construct between 50-150 000 houses, spearheaded by a national housing agency.
Construction of the housing should start not later than mid-1999.
Public sector restructuring
Labour has proposed a National Framework Agreement on restructuring the public sector. This framework will ensure that the public sector is restructured according to the needs of service delivery, and not because of fiscal considerations, or the blind need to cut back the public service to meet budget deficit targets. This would also ensure that the public service is expanded. Where it is agreed that there is a shortage of personnel to deliver basic services, and that where it may be bloated, public servants should be redeployed to where they can be usefully employed.
The agreement would confirm the public sector bargaining council moratorium on retrenchments. The details of the agreement would be negotiated after the Summit. Government has agreed in principle to labour's proposal, although it is still waiting for the final mandate on this matter.
Youth Brigades/A National Youth Service programme
A framework agreement is close to finalisation on a national youth brigade/ youth service programme, aimed at training unemployed youth, and deploying them in community projects. Three lead projects which will involve the setting up of youth brigades will be: Working for Water, Cleaning and Greening the Cities, and other Public Works Programmes.
Youth Brigade volunteers will not receive a wage, but an allowance, and will only be employed for a limited period.
Income grants for the unemployed and those earning below a certain income
Government has not been able to agree to our proposals for social security measures to support the unemployed in advance of the job summit. But it has committed itself in principle to implement a comprehensive social security system. After the summit, the parties will discuss labour’s proposal for a basic income grant aimed at assisting those living in poverty and the unemployed.
Amendments to the LRA on retrenchments
The Labour Relations Act presently makes retrenchments too easy for employers. COSATU wants the Act to be changed so that workers are able to strike on an employers’ decision to retrench.
The ANC recognises the problem and is considering a proposal by COSATU on this matter. There is no full agreement on the wording as yet, Government will respond during the week.
Productivity Agreement
COSATU is tabling a productivity and equity agreement with a number of key principles:
Business has raised concerns about the job security, closing the wage gap and increased investment clauses.
Industrial Summit
Labour has proposed that each industry must convene jobs summits. Government has agreed to the concept and is now investigating how best to finance this proposal.
Tariffs
COSATU has called on government to halt tariff reductions in industries where thousands of jobs have been lost. There must be an investigation in those industries affected by job losses to seek to increase tariffs to the WTO levels, and, where there is a real need, to consider increasing it above the WTO levels.
At this stage government has not agreed to COSATU's demand.
Social Plan
There is broad agreement between all parties at NEDLAC on a social plan to try to deal with job loss. Employers will be encouraged to find alternatives to retrenchments. Where this is not possible, they must retrain the workers they plan to retrench.
Customs and Excise
Organised labour has tabled a set of 14 demands to improve South African border controls and customs controls. Government supports the need for changes to the Customs and Excise infrastructure, but has not put forward a firm proposal in response to the COSATU proposal.
Buy Local
COSATU has called for a campaign to promote consumers buying goods and services that are made in South Africa.
There is no agreement on these campaigns as yet. The main dispute is over COSATU's demand that retailers must set targets on the quantity of local goods that they will stock.
Business is very unenthusiastic about this proposal. Labour may need to campaign to get retailers to agree.
Domestic Investment
COSATU wants to promote a campaign to get businesses and investors to invest in South Africa.
But it also wants to put a check on speculative investment in the financial markets.
This speculation has caused a major crisis in the South African economy.
COSATU is proposing:
"Adjustments to Gear are necessary" – ANC NECThe ANC NEC which met on October 16-17 agreed that the basic objectives of the current policy remain critical for the successful transformation of the economy. In realising the objectives, there has to be a continual assessment of the context. The impact of the current international financial crisis on the economy was reported on and fully assessed. Structural changes already achieved have clearly strengthened the economy and made it more resilient in the face of external pressures. The NEC received a report on the deliberations of the IMF, Commonwealth and the World Bank. The NEC noted that the international crisis was particularly serious and that there has not been clear leadership on how to deal with this crisis. There was a very real threat of a severe reversal of development and industrialisation leading to greater poverty and job destruction particularly in developing countries. This threat looms over South Africa. It is in this context that we have to continue to strengthen our economy and make carefully considered adjustments to policies where necessary to deal with the financial crisis and its impact on our economy. Of concern is the effect of lower growth and high interest rates on employment creation and investment. The projections of Gear on growth, interest rates, and employment will not be met in the time frames intended. Adjustments to address this are necessary. The NEC agreed that detailed work needed to be done to address these changed circumstances, whilst retaining the coherence and strength of its policy. Tri-partite Alliance The NEC reiterated the commitment of the ANC to the Tri-partite Alliance and it mandated the ANC delegation to the Alliance Summit to pursue the immediate objective of strengthening all components of the Alliance and enhancing unity in action to attain the objective of "a better life for all". The Jobs Summit The report on preparations for the Job Summit was welcomed. It was clear from the report that a great deal of agreement had been reached on the appropriate policy adjustments and programmes to deal with job creation in the present circumstances. |
Msizi Nthalinthali wakes up at 3:30am every morning of his life to go to work. He comes home after 9pm. He earns R1000 a month. Msizi is a taxi driver.
He is also a member of the recently dissolved South African Taxi Drivers’ Union which has just joined the Transport and General Workers’ Union (TGWU). He and his fellow drivers of taxis are also "the most vulnerable workers in our country", says TGWU general secretary, Randall Howard.
According to TGWU taxi coordinator, Maurice Bokaba, the taxi industry was a viable economic venture in the 1980s. Back then, there were no laws that regulated the industry. There were no laws that said who could operate taxis and how many taxis could operate.
"Many retrenched people got involved in the taxi industry because it was so easy to do so", says Bokaba. As a result the market was flooded and is now completely saturated.
Bokaba has no doubt that this is a key factor in the taxi violence which flared up in the early 1990s. "Violence emanated from employers and not workers", he stresses. "The root cause of violence is that there are so many taxi associations fighting for the same routes." Bokaba also points out that workers have become victims of this violence because they are not aware of their rights. They are being used by taxi owners.
In 1992 workers organised in the South African Taxi Drivers Union (Satdu) developed a legal document to challenge the status of taxi drivers so they could be covered by the LRA.
By 1994 they had developed direct links with the Department of Transport and began to work on formalising the industry. This saw the setting up of the National Taxi Task Team (NTTT). The NTTT recently made recommendations to the Department of Transport which include:
"The implementation of these recommendations now rests with provinces", said Bokaba. "The formalisation process means operators must register. A process will be set in place to check all taxi associations".
Taxi bargaining council?
Bokaba believes it is a very positive step that TGWU is now organising in the taxi sector and says workers will benefit greatly from their union membership. "This will strengthen our hand to bargain with employers", he points out. "The establishment of the South African Taxi Council (employer umbrella body) will also assist the formalisation process" as it represents all employer bodies and has recognition status. "Workers are looking at …the possibility of setting up bargaining councils", he adds.
The establishment of a National Taxi Labour Relations Forum (which was agreed upon in 1996 after a bosberaad with employers) will also help to regulate the process. "For us, regulation means better employment conditions", says Bokaba. Howard adds that a regulated industry should mean a "peaceful, efficient, reliable, affordable and safe" industry.
For him the issue of violence is top of the agenda. "Recruiting is one thing, organising (taxi drivers) involves politicisation. One of the key things is to educate them against being used as cannon fodder for employer violence", Howard says.
Other issues
Outside of this, perhaps the most significant move in the industry is the research to be conducted by the Employment Conditions Commission on working conditions in the taxi industry. Bokaba says this report should be finalised by the end of February 1999. The research will come up with a framework in which to develop a programme to improve working conditions in the industry.
Improving working conditions for drivers, will also help taxi users. "TGWU will be taking up a campaign of drivers saying ‘NO’ to driving defective vehicles", said Howard.
Workers in the taxi industry have taken a great step in joining TGWU. The challenge now is to ensure speedy regulation of the industry, the development of health and safety standards for drivers, and mostly to guarantee that all workers are covered by labour legislation such as the Basic Conditions of Employment Act and the Labour Relations Act. Because only then will people like Msizi Nthalinthali not have to get up at 3:30am for R1000 a month.
And if Cosatu members support TGWU’s campaign for drivers to say ‘NO’ to driving defective vehicles, then we could see taxi drivers and workers joining hands to "Arrive Alive".
Kim Jurgensen
