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Shopsteward Volume 26 No. 2

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National Congress  |  Resolutions

2. SOCIO-ECONOMIC RESOLUTIONS


2.1. Broad Macro-Economic Framework and GEAR

2.2 Privatisation

2.3. Government`s Debt

2.4. EPZ, SDI, IDZ

2.5. RDP Implementation and Masakhane

2.6 Land Reform / Development

2.7 Food Security

2.8 Fisheries

2.9 Industrial and Trade Policy

2.10 Fiscal Policy

2.11 Monetary Policy

2.12 Labour Market Policy

2.13 Workplace Democracy

2.14 Funding of Public Education

2.15 Rationalisation in Education

2.16 Union Investment




2.1. Broad Macro-Economic Framework and GEAR

    1. The Government has adopted GEAR as its economic strategy
    2. GEAR has its main focus and trust the making of South Africa a paradise for investors, especially those from countries with very poor workers rights records
    3. GEAR cannot be relied upon to address decades of abject poverty of the majority of our people through the creation of sustainable jobs.
    4. GEAR calls on the government to reduce on social spending, thereby accelerating the rate of unemployment.
    1. COSATU rejects GEAR as an Economic Strategy and campaign for a macro - economic policy that is consisted with the objectives of the RDP.
    2. COSATU must campaign for the re-instatement of the Reconstruction and Development Programme on the centre stage of the government the Alliance and all progressive organisations in our country.
    1. The RDP is the programme for improving the quality of life of our people.
    2. The RDP has been always and should remain a people`s driven and centred policy
    3. RDP was our election mandate.
    4. RDP is a revolutionary programme.
    5. As Alliance we have lost ownership of this programme.
    6. There are no clear reports of the implementation of the RDP by government departments and there is no clear co-ordination.
    7. The Government Economic Strategy/policy "Growth, Economic And Redistribution" (GEAR) has brought about misery and hardship to the millions of our people in particular the rural masses: e.g. cut in transport subsidy, and health budget etc.
    1. The RDP must be defended by all democratic forces of the country.
    2. There is no alternative to RDP.
    3. RDP is our only instrument/weapon to bury apartheid misery and poverty.
    4. Gear and RDP are not the two sides of the same coin and that the two are not compatible; the objectives of the RDP will never be realised nor met by Gear.
    1. To reject the Gear at its current form.
    2. COSATU as a matter of urgency establish a National Reconstruction Fund where all affiliates RDP contributions will be channeled.
    3. To redirect our Pension/Provident/Retirement Fund investments into RDP linked projects
    4. Mobilising all COSATU members to work on the 27 April 1998. The production output of the day to be contributed to the Reconstruction Fund. This to be done on annual basis.
    1. That the past congress resolutions called for:
      • The state to prioritise the provision of jobs, housing, health care and free and compulsory education for the working class;
      • Nationalisation and re-nationalisation of selective industries such as the building and pharmaceutical industries and privatised former state enterprises as a way of achieving these immediate priorities, and
      • The RDP to advance our struggle for socialism
    2. That despite the 1994 elections and the adoption of the RDP,
    3. The capitalist class is still dominant over the working class therefore, the economy is in the hand of a few and the majority do not have access to wealth.
    4. The government has no direct control of the economy.
    5. Workers have no say in political decisions.
    6. No jobs are being created.
    7. High rates of taxes on the working class and low rates of company
    8. Poor social services such as health, education, social welfare, etc. and the continued cuts in spending on those services.
    9. There is no good investment strategy, therefore no jobs are being created.
    10. Low tariffs undermine local business.
    11. Interest rates are very high.
    12. The rate of inflation is higher than wage increases.
    13. <
    14. The value of the Rand is falling
    15. Absence of a proper transport infrastructure, leading to taxi violence.
    16. The high rate of crime caused by lack of jobs.
    1. The present government`s Growth, Employment and Redistribution (GEAR) economic strategy is committed to:
      • A bosses led economic growth
      • A withdrawal of the state from the economy
      • Cuts in state expenditure, including health and education
      • Job loss in the civil service
      • Large-scale privatisation
      • Deregulation of markets, including cutting of tariffs which will lead to further job loss
      • Labour flexibility and low wages
      • An overall approach of international competitiveness and export-led growth, unlike the RDPís commitment to meeting the basic needs of the people.
      • International competitiveness and labour flexibility will lead to greater profits for bosses and greater misery for workers, resulting in lower wages, longer hours, job losses, casualisation and sub-contracting;
    2. Related government economic policies around housing, land reform, education and social services effectively amount to privatisation of all of these;
    3. Gear is essentially an anti-working class economic programme and a setback in our struggle for socialism.
    4. The current government economic policy deviates from the RDP and that it is a direct contrast of the RDP though cushioned in the same language as that in the RDP
    5. That it bears many of the hallmarks of the Structural Adjustment Programmes
    6. That our comrades in government appear to be accepting the logic of those who drive the globalisation process
    7. That experience in other countries shows that GEAR can actually lead S A to compromise many of the aims of the RDP
    8. That an export - led economy defeats the ideals for sustainable job creation and therefore that of sustainable growth and development
    9. That S A has its own peculiar history which requires direct government intervention in order to address past imbalances
    10. That economic growth cannot be left solely in the hands of capital
    1. The adoption of GEAR by the ANC is a very definite shift in policy by the ANC and will seriously undermine the achievement of RDP objectives.
    2. GEAR is diametrically opposed to the interests of the working class and instead promotes the interests of the bosses.
    3. GEAR`s stated objective of providing 400 000 new jobs per annum by the year 2000 besides being inadequate to address the massive and growing unemployment problem in the country, will not be realised.
    4. Basic social service delivery, job creation and other RDP goals will remain at the level of rhetoric until GEAR is scrapped.
    5. That the hegemonic influence of the left needs strengthening
    6. That the RDP is being pushed to the sidelines
    7. An Economic strategy is a political programme of one social group or social class, which is aimed at achieving certain goals. Therefore, an Economic strategy involves political choices and leads to conflict between social groups.
    8. An Economic strategy needs to spell out the aims and goals of the
    9. economic process. i.e. It needs to state what problems are being dealt with or addressed in that strategy.
    10. It needs to state how the various parts of the economic process will be coordinate in order to fulfill your aims and goals.
    11. It needs to spell out what the role of the state will be in the strategy. That our Economic Strategy should aim at the following goals:
      1. Working Class control of strategic companies such as Banks.
      2. Ensuring greater state control over the economy.
      3. Ensuring that more land is available to the landless.
      4. Improving social services and infrastructure such as houses, health, education, transport etc., to the poor.
      5. Lower taxes for the working class and the poor.
      6. Job creation.
      7. Encouraging investment in new factories that will create and not on shares in the JSE.
      8. Promoting the development of local industries.
      9. That all the steps that we take are part of the process leading to a socialist society, democratically controlled by workers.
    1. COSATU calls on the ANC to abandon GEAR with immediate effect
    2. COSATU to embark on a campaign which involves civic, youth, student, women and other working class organisations to resist all elements of GEAR such as subsidy cuts, privatisation, labour market flexibility, etc.
    3. COSATU convenes a conference in early 1998, as part of a process to develop, in consultation with other working class organisations, an alternative economic model to GEAR which seeks to advance COSATUís stated commitment to socialism.
    4. To engage in a programme that re-asserts the alliance and the liberation movement to one which is sensitive to the interests of the working people and the poor in general
    5. We call upon all COSATU unions to contribute 10% of their total retirement funds to RDP related projects, i.e., infrastructure, housing, which may yield less interest rates.
    6. COSATU through its affiliates should contribute R1,00 per annum per member to an RDP Fund for a period of three (3) years
    7. COSATU to establish the RDP Fund, where all contributions by members, employers and other organisations will be kept and administered.
    1. Our ideological vision of a socialist society and the creation of a socialist state must underpin our economic policies.
    2. COSATU accepts that the economy must be dramatically restructured to meet the pressure of international integration and the eradication of social inequality in its population.
    3. It understands that this process will not be without pain for its members but the pain must be distributed equally to other sections of the society.
    4. We remain committed to the vision outlined in the RDP:
    5. "Eliminate Poverty, low wages and extreme inequalities in wages and wealth generated by the apartheid system, meet basic needs, and thus ensure that every South African has a decent standard of living and economic security and to create productive employment opportunities at a living wage for all South Africans" (clause 4.2.2 RDP Base Document).
    6. The only way to achieve this objective is if the South African economy grows substantially. Historically this kind of growth has only happened when government has intervened and invested in the economy.
    7. We cannot rely on private sector investment, international market forces and the reduction of government expenditure to create the kind of growth that will create jobs.
    8. For this reason COSATU rejects GEAR. Moreover, it is worker unfriendly, restrictive and anti-RDP.
    9. COSATU and the organs of civil society should approach Government to express their dissatisfaction with GEAR.
    10. COSATU completely rejects the "Growth for all Strategy" of the business controlled South African Foundation as a narrow attempt to entrench the bias in the economy towards large corporate interests at the expense of the majority.
    11. We accept that South Africa must become integrated into the world economy. This will mean ongoing involvement with the International Monetary Fund and the World Bank. But these multilateral institutions should not have the right to dictate economic policy to independent countries. COSATU will continue to develop its links with working class organisations internationally so it can negotiate with such institutions on the broadest possible front.
    1. To strengthen the campaign to close the apartheid wage gap, and in particular the gap between the income of the top and bottom earners in a company.
    2. To fight for policies which develop access to social services to all, where applicable at affordable prices, through the public sector, and these should include:
      • A national health care system

      • Affordable medicines for all

      • Affordable, decent housing provided by the state

      • Free and compulsory education for all until the completion of high school.

    3. To campaign for a review of tax policies in order to increase its progressivity, in particular through:
      • The introduction of a capital gains tax

      • Increasing the top tax rate for those earning huge salaries

      • Exempting further basic goods from VAT, and introducing a higher rate for luxury goods.

  1. SADTU
  2. Therefore resolve:

    1 To engage the government as a Federation in the drafting of a programme which must ensure meeting the needs of all citizens in the country.

    2 That the principal objective of all workers must be to achieve socialism.

  3. SARHWU
  4. RDP

    We are committed to the objectives of the RDP. We have noted that we have failed to implement this resolution particularly the funding of the RDP.

    We reiterate that we should strive for its implementation.

    There will be a need to review our approach to the RDP.

    To effect meaning to it COSATU should further identify areas within the RDP document that can be achieved in the short and long term so that we can take struggle around those issues.

  5. CAWU

  6. Noting that

    Therefore resolve that

  7. PPWAWU
  8. Noting that

    Believing that:

    Therefore resolve that:

  9. SARHWU
  10. The current macro-economic policy of the government should not be totally rejected. Whilst we note areas of disagreement we need to take in cognisance the fact that the climate for foreign investment must be conducive. In order that South Africa is not also rejected by the international community that played a pivotal role in our sruggle.

    An alliance summit should be convened to map out the socio-economic policy direction of the country. Which should guide the ANC government.

    COSATU should isolate problematic elements of GEAR to contest them in the summit.

    COSATU should before the summit commission NALEDI to start working on the document now in preparation for our policy conference in 1998.

  11. CWIU
  12. Noting that

    Noting that

    Further believing that

    Resolves that

  13. NUMSA
  14. SACTWU
  15. Resolves



2.2 Privatisation

    1. That racial capitalism in South Africa has produced a highly skewed distribution of income and wealth in which the majority find themselves at the bottom of the pile.

    2. That the African National Congress (ANC) led government is embarking on a wholesale privatisation of public assets.

    1. That retention of some public companies by the State remains essential in ensuring that the basic needs of the poorest sections of the society are met.

    2. That converting public monopolies into private monopolies will do no redistributive justice because those who have access to such assets are the rich minority as they have financial resources.

    3. Further believing State ownership is only one means of intervening in the economy.

    4. That wholesale privatisation will only cause job losses.

    1. That this Federation continue to oppose wholesale privatisation of state assets.

    2. That a Campaign against privatisation be embarked upon by the Federation.

    1. COSATU has on number of occasions resolved that we are opposed to privatisation.
    2. We have campaigned as a Federation against privatisation and commercialisation.
    3. The National Framework Agreement(NFA) was concluded with government to manage the process of restructuring within public assets and services.
    4. Notwithstanding the NFA the government continues to make unilateral decisions as far as restructuring is concerned and that many of these decisions outrightly promote privatisation.
    1. The use of the phrase "restructuring of state assets" by the government is nothing more than a code name for various forms of privatisation.
    2. Contrary to what many be claiming, privatisation does not lead to black economic empowerment but merely seeks to create a layer of black capitalists.
    3. Privatisation cannot meet one of its stated objectives of achieving a balanced budget, due to amongst others, the ongoing costs of servicing the "apartheid debt" which currently amounts to over R300 billion.
    1. We implacably oppose the governmentís privatisation policies or whatever it may be called and to re-affirm our commitment towards the provision of all basic needs of our people through the state and state intervention.
    2. We organise a campaign to educate and mobilise the working class against privatisation.
    3. We fight to re-instate the nationalisation demands of the Freedom Charter with respect, in the first instance, to those services which are basic human rights.
    4. We calls upon our international allies to support and intensify the campaign against the IMF and the World Bank and the current form of the global economy.
    5. We campaign together with other debtor nations for the debt we inherited from the apartheid regime and we jointly inherited from imperialist exploitation to be renounced.
    6. We campaign, in the short term, for the one Rand in five currently used to service the public debt, to be allocated to RDP projects.
    1. COSATU rejects privatisation as the single answer to the problems of state assets.
    2. It will only accept the restructuring of state assets if our existing employment base is defended and if social services are extended to the entire population. Where state assets are sold, the finances generated should be used to create a social welfare net.
    3. The following key assets for the provision of social services should not be privatised:
    4. land

      water

      electricity

      health

      education

      transport

    5. If these social services are already in state hands, we should defend them, if not they should be nationalised.
    6. COSATU will consider various types of partnerships between parastatals or other arrangements with the corporate sector as long as these partnerships or other arrangements are based on maximising benefits for its constituency and consumers as a whole.
    7. The Government should carefully look at relinquishing ownership of state assets on a case by case basis without abdicating its responsibility to deliver services to communities.
    1. That GEAR as an economic strategy would blindly lead to wholesale privatisation
    2. That wholesale privatisation would impoverish our people and that only few elite will benefit
    3. That S A needs transformation of the public service to one that efficiently and effectively delivers services
    4. That privatisation of basic needs like water will further impoverish the majority of our people as services will come at high costs
    1. Call for a moratorium on privatisation;
    2. To campaign against all areas of GEAR, including privatisation, welfare grants, job cuts, jobless growth, etc.
  1. SADTU
  2. Noting

    Believing

    Therefore Resolve

  3. SAMWU
  4. Noting that

    Noting further that

    1. The adoption of the privatisation policy by the ANC, at its December 1994 Conference, took place without consultation with COSATU.

    Believing that

    Resolves that

  5. NUMSA
  6. CWIU
  7. Resolves to

  8. SADTU
  9. Private - Public Partnership

    We have noted the increasing role of the private-public partnership in the South African Economy.

    Generally there is a declining employment from the public sector.

    The government too is moving away from direct involvement in the economy.

    The private sector is emerging as an alternative route for employment especially in the manufacturing sector.

    This increasing role between private and public will need a special focus particularly on our strategy for job creation.

    It will be necessary for COSATU to formulate a policy that will underpin our strategy on job creation through private- public partnership.



2.3. Government`s Debt

    1. A huge proportion of the governmentís annual budget is allocated to paying the Interest on debt. This debt repayment amounted to R 39.6 billion and (R396 000 000 000) or 20% of the 1997/8 government budget or 1 out of every R5.00. This amount is the second highest of the allocations. Only education was higher as R40 billion.
    2. Compared to other allocations of the governments budget the amount of debt repayment is extremely high, i.e. Health-care 11%, Pensions 10%, Housing 2%.
    3. Debt repayment is a huge waste of taxpayer`s money which enriched a minority at the expense of addressing the needs of the most impoverished .sections of the working class in housing, health care, education and social welfare.
    4. Presently the debt amounts to R 311 billion, most of which was incurred before the democratic elections of 1994. In fact most of this debt was incurred during 1990 - 1993 to secure much of the huge pension pay-outs to those who served apartheid well - the politicians, police and army generals, etc.
    5. These loans were made from both national and foreign financial institutions.
    1. This huge debt was made in order to finance the apartheid systems and its regime.
    2. This system is responsible for some of the worst violations of human rights in world history and has been condemned as "a crime against humanity".
    3. The majority of South Africans are still continuing to suffer from the results of specific acts of brutal oppression and the poverty which resulted from the system in their everyday lives.
    4. The repayment of apartheid debt is now at the expense of the very people who suffered under Apartheid and continue to do so in the "new South Africa".
    5. In terms of international law we can legitimately call for the scrapping of the debt on the basis of the doctrine of odious debt. This doctrine has been established in international courts of law for the purposes of allowing legitimate and democratic successor governments to disown debts incurred by previous government such as oppressive dictatorships.
    6. We have a legitimate basis for calling for the scrapping of apartheid incurred debt and redirecting this part of the governments budget towards addressing the needs of the working class, the unemployed, the rural poor, the abused women and children, the homeless and those in need of health-care.
    7. We confidently rely on support from the international community.
    1. COSATU to call all other sympathetic organisations to join a campaign to scrap all debt incurred by apartheid to redirect this money to improving the lost of the working class and the poor.
    2. To this end COSATU together with NGOs and supportive organisations will call for and organise a special conference before the end of 1997, to develop a programme of action for the scrapping of all debt
    3. A conference to be called for scrapping of all debt
    4. That COSATU actively support the international campaign against foreign debt.
    1. We reject the obsession around the deficit and the strategy to service it, because it places serious constraints on the development of communities and the delivery of basic needs.
    2. "Odious debt" (foreign debt) incurred by the previous government has to be reviewed.
    3. The Government should critically look at the internal debt repayment in terms of the period, interest rate, and re-evaluate those that were used to destroy underprivileged communities.
    4. Government should investigate other sources of borrowing that would not lead to an escalation of interest and also should explore creating its own institutions of borrowing.
  1. CWIU
  2. Noting that

    And believing that

    We therefore resolve

  3. SADTU
  4. The new government took over a corrupt state which had plunged a country in a financial crisis both domestically and international.

    The financial crisis has manifested itself into a national debt.

    We believe that the new government is not obliged to pay the debt which was not incurred by it.

    The continued servicing of the debt have major socio-economic implications for the country such as the inability to address the spiral unemployment and under employment.

    To further stimulate the economy the previously incurred debt must be scrapped.

    Alternatively it should be paid at favourable terms.

  5. NUMSA



2.4. EPZ, SDI, IDZ

    1. The record of the South African Labour movement of protecting and improving labour standards.
    2. Attempts by employers and past government to undermine and reverse gains made by the labour movements through struggle.
    3. The tendency by neighbouring countries to introduce Export Processing Zones.
    4. Export Processing Zones are used in third world countries as means of suppressing workers and thereby destroying the labour movement.
    1. A trade union movement is duly bound to improve and protect the lives of workers.
    2. A trade union movement should be a watchdog to government and employers.
    1. COSATU should vigorously oppose attempts by business and government to establish Export Processing Zones.
    2. COSATU in all regions should oppose the attempts by Provincial Governments to have Export Processing Zones as part of their economic development agenda.
    3. COSATU should campaign for any discussions on Export Processing Zones to be part of the NEDLAC agenda; provinces should not have the right to form Export Processing Zones. Workers, shop stewards and the public should be informed about the dangers of having Export Processing Zones.
    1. We remain opposed to EPZ etc as they down-grade labour standards.
    2. In engaging those who propagate the concept, the following principles underpin our engagement:
    1. That EPZs even if some working conditions are regulated by LRA would still be negative to the regional economy
    2. That EPZ investors are footloose capitalists who are a threat to job security
    1. Reject Gear as an economic strategy, on the basis that it is an anti - working class economic strategy
    2. To call on the Alliance partners to reject GEAR - with immediate effect
    3. To campaign against all areas of Gear: privatisation, welfare grants, job cuts, jobless growth, etc.
    4. To unite with civic, youth, student, women and other organisations to campaign against GEAR and using as a common programme :
      1. The Social Equity document
      2. The RDP
      3. COSATUís 1992 Economic Policy Conference resolutions
    5. Campaign for an economic strategy that will implement the objectives of the RDP, including the rejection of privatisation in favour of nationalisation and re-nationalisation in order to ensure delivery;
    6. Call for a moratorium on privatisation;
    7. Strengthen COSATUís role in NEDLAC through greater accountability of NEDLAC representatives, regular report backs to workers and a programme of mass action to back up working class demands.
    8. To mobilise, educate and organise workers and people in the Southern African region, in South Africa and internationally against globalisation
    9. To vigorously campaign for a world economy based on Peopleís needs
    10. To embark on programmes within Labour ITCís, for redistribution of the international wealth
    11. To engage the alliance in a programme that re-asserts the RDP as a guiding policy for economic growth and development
    12. To mobilise, organise and educate the S A society on the nature and implications that GEAR has on the development of our society
    13. To work towards building an economy that appreciate our natural resources and add value to them for the benefit of our country

      2.1. Community participation in the project development

      2.2. Capacity building as it relates to human resource development and training programmes

      2.3. Diversification of investment to avoid possible failures

      2.4. Backward and forward linkages to stimulate local and regional industries to such zones

      2.5. Guarantee labour standards

      2.6. RDP based development.

  1. SACTWU
  2. Noting that

    Believing that

    Therefore resolves that

  3. NUMSA
  4. CWIU
  5. Noting

    We therefore resolve



2.5. RDP Implementation and Masakhane

    1. To engage in a programme that re-asserts the alliance and the liberation movement to one which is sensitive to the interests of the working people and the poor in general
    2. To mobilise and educate workers and the entire democratic movement around the social accord
    3. We call upon all COSATU unions to contribute 10% of their total retirement funds to RDP related projects, i.e., infrastructure, housing, which may yield less interest rates.
    4. COSATU through its affiliates should contribute R1,00 per annum per member to an RDP Fund for a period of three (3) years
    5. COSATU to establish the RDP Fund, where all contributions by members, employers and other organisations will be kept and administered.
    6. To ensure the implementation of the RDP as understood by the working class the following elements should constitute key parts of our economic strategy:
    7. To campaign against all areas of GEAR :-

        privatisation, welfare grants, job cuts, jobless growth, etc.

    8. To unite with civic, youth, student, women and other organisations to campaign against GEAR and using as a common programme :
      1. The Social Equity document
      2. The RDP
      3. COSATUís 1992 Economic Policy Conference resolutions
    9. Campaign for an economic strategy that will implement the objectives of the RDP, including the rejection of privatisation in favour of nationalisation and re-nationalisation in order to ensure delivery;
    10. Call for a moratorium on privatisation;
    11. Strengthen COSATUís role in NEDLAC through greater accountability of NEDLAC representatives, regular report backs to workers and a programme of mass action to back up working class demands.
    12. To mobilise, educate and organise workers and people in the Southern African region, in South Africa and internationally against globalisation
    13. To vigorously campaign for a world economy based on Peopleís needs
    14. To embark on programmes within Labour ITCís, for redistribution of the international wealth
    15. To engage the alliance in a programme that re-asserts the RDP as a guiding policy for economic growth and development
    16. To mobilise, organise and educate the S A society on the nature and implications that GEAR has on the development of our society
    17. To work towards building an economy that appreciate our natural resources and add value to them for the benefit of our country
    1. Rebuilding of our country is not a sole responsibilities of our Government.
    2. Rebuilding of our country will require a collective effort from all South African Citizens.
    1. Masakhane is not only about the paying of services, but is about collective re-building of our communities.
    2. Masakhane is about all of us contributing towards the betterment of our own communities.
    1. To educate people about Masakhane Campaign and what it means.
    2. To mobilise communities behind Masakhane Campaign.
    3. To assist our local government in delivering services to communities.
    4. To encourage all COSATU members to participate in the Masakhane Committee as community members and workers.
    1. Rebuilding of our country is not a sole responsibility of our Government
    2. Rebuilding of our country will require a collective efforts from all South Africans
    1. Masakhane is not only about the paying of services, but is about collective rebuilding of our communities
    2. Masakhane is bout all of us contributing towards the betterment of our communities.
    1. To educate people about Masakhane Campaign and what it means
    2. To mobilise communities behind Masakhane Campaign
    3. To assist our local government in delivering services to communities
    4. To encourage all COSATU members to participate in the Masakhane Committees as community members and workers
    1. The advent of a democratic order, as manifested by the 1994 breakthrough, was greeted with a great deal of optimism by the oppressed in particular the rural people, who are the most disadvantaged
    2. This for the oppressed, signified the dawning of a better life. A better life
    3. for the working class means the translation into realisation of demand for
    4. better social conditions and a living wage.
    5. Majority of the electorate that put the ANC in government are the poor
    6. coming from the rural areas.
    7. These demands are clearly outlined in the Reconstruction and Development Programme adopted by the Alliance as 1994 Election Manifesto.
    8. The Apartheid regime did not create an infrastructure in the rural areas, hence the slow delivery in most areas in the country.
    1. COSATU reaffirm its support on the RDP and continues to mobilise the Alliance to put its whole weight on it and reject the gear.
    2. As a practical way of implementing the RDP the congress should pronounce on the contribution by both the workers and the employers.
    3. COSATU should encourage professional teachers, nurses, doctors etc. to move to the rural areas to provide for the necessary education and health care facilities and other vital services / services in general. Some form of incentive for all those who will be progressive and heed this call should be formulated through the Alliance by the government.
    4. COSATU campaigns for beneficiation of our products and the creation of clusters in the rural areas so as to avoid wastes of our raw materials.
    5. A percentage of the total Urban Economy (GDP) should be ploughed back to the rural areas, which produce raw material, for the Rural Development Programme and to provide the necessary infrastructure like roads, hospitals/ health centres and schools. Most of this should be earmarked for human Resource Development through Basic Education, Training and ABET.
    6. COSATU together with the Alliance should encourage and support, materially and otherwise, the initiatives to establish a Rural Social Movement which shall be based on our basic principles of democracy. This movement should drive the programme of both Economical and Human Resources Development .
  1. CWIU
  2. CAWU
  3. Noting that

    Believing that:

    Therefore resolve

  4. PPWAWU
  5. Nothing that

    Believing that

    Resolves

  6. SAAPAWU
  7. Noting that

    Therefore resolve that



2.6 Land Reform / Development

    1. Land reforms should promote small and medium size farmers.
    2. Farm workers must be allowed farming and grazing rights.
    3. There is a need for a conference on rural development involving unions and non-governmental organisations. Critical to this conference would be to look at:

      3.1. Land reform and tourism

      3.2. Reforming Trust land

      3.3. The role of the Land Bank to carry out effective transformation

      3.4. Certain changes to the Constitution i.e. the property clause.

  1. NUMSA



2.7 Food Security

    1. Accessibility
    2. Availability
    3. Affordability
    1. The efficiency of domestic producers and processors
    2. Trade policy
    3. Competitiveness of wholesale and retail markets
    4. The use of producer and consumer subsidies, and
    5. Taxes.
    1. Economic growth
    2. Redistribution, which includes:
      • target aid, including food stamps and school feeding schemes, and

      • welfare benefits, including pensions and unemployment benefits.

    3. Subsistence farming, which includes providing:
    1. Decreasing trade barriers [for example quotas and tariffs on imported products]
    2. Decreasing consumer and producers subsidies, and
    3. Lowering taxes for the lower income earners.
    1. That COSATU establishes a task-team to develop a food security policy proposal that is in line with the broad principles as contained in the RDP and in line with the vision of "a better life for all".
    2. That this food security policy proposal shall contain as its other central theme the establishment of a social security net that ensures that no one goes hungry and will revive schemes such as school feeding schemes.
    3. That a living wage demand and campaign serve as the basis and be part of food security issues that will ensure that the buying power of disposable/real wage on food products is increased.
    4. To propose a legislation to be put in placed in which companies are forced to donate perishable and other food items instead of dumping these as part of their strategy to restore the prices of these products.
    5. To meaningfully engage the tripartite alliance and attempt to secure an alliance policy position on food security. To also engage other organs of civil society that broadly belong to the democratic movement.
    6. That COSATU embarks on a campaign [in line with the world food summit of Rome] to mobilise broad social support in forcing the government to take into account policy proposals before the ultimate cabinet approval of food security policy which must address poverty.
      • financial assistance

      • technical assistance

      • land redistribution.

  1. FAWU
  2. Background

    Food security forms part of the governmentís agricultural policy. There are two concepts covered by the broad term "food security". The first is national food security and the second is household food security.

    National food security refers to the ability of the country to provide adequate food supplies for its citizens, while household food security refers to the ability of households to access and afford adequate food supplies. While national food security is necessary, it is not enough to ensure adequate food supplies for every household. This was shown by the Apartheid Government. Even though enough food was being produced in the country, thousands of people were still left starving. Therefor, who has access to food, who can afford to buy food and who are controlling the distribution of food are more important issues to household food security than how much food is being produced in the country.

    The democratic Government has expressed a desire to follow a policy of household food security rather than national food security. Food security involves three components:

    Accessibility deals with the provision of infrastructure, transports and markets. This is controlled by the state, and the political and economical policies which help facilitate these goals [e.g. the RDP].

    Availability deals with economic growth, trade, sustainable farming techniques and environmental considerations such as the effect of fertilisers and pesticides on the soil. This encompasses both state policies [i.e. economic growth and trade] and issues affecting producers [i.e. farming techniques and environmental considerations]

    Affordability is the most important aspect for labour. There are two components to affordability, namely food prices and consumer income. Hence it is important to emphasise the need for a living wage and social safety nets. These are, in turn, influenced by many factors.

    Food prices are affected by:

    Consumer incomes are affected by:

    Food security is one component of the domestic Governmentís agricultural strategy. This agricultural strategy is influenced by other macro-economic policies pursued by the Government.

    In 1997, the Growth, Employment and Redistribution [GEAR] macro-economic strategy was launched by the ANC-led alliance. GEAR has established certain guidelines for the economy that will affect agriculture. Some examples are:

    Lowering taxes will help the lower income earners to be able to buy food. However, lowering trade barriers and subsidies will not be as helpful.

    Lowering tariffs and quotas means that food imports from other countries can enter the South African market without being charged. If too many imported goods enter the domestic market, domestic producers will face more competition. If local producers cannot compete with international producers, South African producers will perish and employment will decline.

    Decreasing producer subsidies will mean that financial support for all producers [including informal producers] will no longer take place as it did under Apartheid. There will therefor be little support for both previously disadvantage people who are trying to become commercial farmers on existing commercial farms. Decreasing consumer subsidies means that prices at the supermarket may increase because the Government is not helping to keep the prices low by subsidising them.

    Household food security is a promising development in terms of the Governmentís approach to agriculture. However food security is affected by other policy developments. A suggestion would be for the Government to disclose the finance allocated to achieving food security. This would need to be included as part of the financial commitment to decreasing consumer and producers` subsidies, tax legislation, tariff reduction, etc. In order to make food security the most important goal in agriculture policy, the Government must ensure that other macro-economic policies assist their ability to achieve household food security.

    RESOLUTION

    Noting that

    Promotion, provision and achievement of food security is the primary task and role of the government as it is with all other issues such as producer subsidies.

    Though the RDP did not stipulate details on the Agriculture and food security in particular, it nevertheless advocates elements of food security such as school Feeding schemes.

    In general the governmentís [GEAR] macro - economic strategy and fiscal discipline [e.g. less social spending] is a potential constrain to government providing the resources for the purpose of food security.

    Believing and understanding that

    Food security is an attempt to go beyond the commitment of national food self sufficiency by promoting household food security.

    Food security must also underpin Agricultural transformation [including land reform] and in particular rural development, as an important principle.

    The best approach to food security is the one that combines the issues of affordability, accessibility and availability. The primary approach should be the setting up of a social security net [that include food stamps/ coupons, feeding schemes, etc.] by the state that will ensure access to food by those who canít afford it.

    Further believing that

    Food accessibility should include the capacity to distribute food by way of provisions of transport, infrastructure and markets.

    The world produce enough to feed its inhabitants and that food could be made available in the country via relevant policies such as prices, subsidies, trade policies, etc.

    Affordability can be raised through living wages/salaries, for those who have a constant source of income. A living wage increases the individuals [or householdsí] buying power and thereby access to affordable food items.

    Therefore resolves



2.8 Fisheries

    1. The government must change the way that fishing licences and quotas are given. They must make sure that communities also get fishing licences. They must also do more to stop people without licences catching fish.
    2. Communities, industries and Unions must take part in changing the industry.
    3. 3. Community based fishing should be encouraged. this will create more jobs for poor people living on the coast. The community can help to make sure that people without licences do not catch the fish.
    4. The Government should look at helping local communities to set up co-operatives to process and sell fish.
    5. The rights of small-scale fishers must be protected.
    6. Local communities must be allowed to catch a certain amount of fish. The government must help these communities to buy nets and boats.
    1. Small business should be allowed entry into the pelagic fishery particularly in terms of catches that can be made inshore;
    2. The long lining of hake could provide opportunities for a wider range of entrants;
    3. Regarding West Coast rock lobster, hoop-netting can be operated inexpensively in could therefore be used as a means of broadening access.
    4. The are several small scale fisheries that are either underdeveloped or are completely new. After appropriate development, this industries could offer opportunities for small business and other new entrants. Examples include the development of fishers on whelks, West Coast limpets, white mussels and some sea weeds and kelp.
    5. In many cases companies own the fishing vehicles, the quotas, the factories, and the markets. If this food chain could be broken up, it could create opportunities for new entrants in various aspects of the industry. Further, private boat owners has been allocated quotas that have to be sold to specific factories. This could lead to unfair practices, for example factories may set low prices or even refuse to purchase catches. Such unfair practices must stop. Private boat owners should be allowed to sell the catches to any factory.
    1. It does not reflect FAWUís view of restructuring raised during the FPDC process
    2. It does not promote job security, job creation and the health and safety of fishing workers.
    3. It does not specify what percentage of the TAC will be reserved for the historically disadvantaged.
    4. It does not promote acceptable methods for development and empowerment.
    5. It does not incorporate appropriate measurers for enforcement and notably omits community participation in policy the resource
    6. It does not offer viable mechanisms for achievement of bio-diversity and sustainable utilisation.
    7. It does not deal with food security.
    8. It does not put an end to paper quotas;
    9. Its criteria for allocating quotas is vague;
    10. It does not spell out how the consultative advisory forum will be constituted;
    11. It does not show how competitiveness and globalisation are relevant;
    12. It does not deal with the issue of foreign participation and joint ventures;
    13. It does not deal with the opening of new fisheries;
    14. It does not compel scientific research to take into account socio economic factors;
    15. It does not deal with the monopolistic nature of the industry;
    16. It does not provide terms and clear times for the restructuring of the industry.
    1. The National Congress of COSATU rejects the white paper produced by the Department of Environmental Affairs.
    2. COSATU will work with the Alliance and International bodies in particular the International Transport Federation - (ITF) in developing a progressive policy that will address the RDP principles and recommendations raised by the International Development Research Centre.
    3. COSATU accepts the critique discussion document produced by FAWU as the framework document to develop its submission to governmentís whiter paper on fisheries.
    4. Amnesty should be addressed as the matter of priority even before the finalisation of the debates on the white paper.
    5. Interim relief should be put in place for all affected people.
    1. A meeting of the Alliance to reach consensus on a common vision, policy and a way forward.
    2. Developing a comprehensive fisheries policy that reflect FAWU position
    3. Engage Minister Pallo Jordan, ANC study group and parliament committee on the policy
    • 72% of the hake quota
    • 75% of the abalone quota, and
    • 71% of the sole quota
  1. FAWU
  2. BACKGROUND

    Historically, access to marine resources was unrestricted. In order to facilitate the monopolisation of the fishing resource by a few white companies system of quotas was introduced. In this way many black fisher folk lost the access rights they had had for generations. At the present time, the fishing industry is completely biased in favour of a few large and medium sized white companies. This is illustrated by the fact that just three (3) companies hold.

    Overall, across all species, approximately nine tenths (9/10) of the resource is controlled by a hand-full of companies. Since 1994, some of these companies have attempted to blacken their faces. They have also sold minority shares to some black business consortia. Further a few members of the black elite have been given quotas. None of the above amounts to any kind of restructuring. None of the historic imbalances have been addressed. The above have merely been attempts to confuse the issue and to frustrate any process that attempts to restructure the industry.

    Prior to, and after the 1994 election, there were various initiatives by Alliance members to outline an equitable and just policy of reconstruction and development for the fishing industry.

    THE RDP

    The RDP outlines the broad framework within which policy development should occur,

    "The primary objective of fisheries policy is the upliftment of impoverished coastal communities through improved access to marine resources and the sustainable management of those resources through appropriate strategies".

    THE INTERNATIONAL DEVELOPMENT RESEARCH CENTRE (IDRC)

    In 1995 the IDRC published the environment reconstruction and development guide. This document outline the following recommendations for fisheries policy.

    THE FISHERIES POLICY DEVELOPMENT COMMITTEE

    On the 27th October 1994 the Minister of Environmental Affairs and Tourism initiated a process of developing a National Fisheries Policy. Mr Mandla Gxanyana, General Secretary of FAWU, was appointed to lead the policy development committee whose task it was to develop a national fisheries policy. The committee initiated a massive process of investigating the development of a national fisheries policy. It was the most comprehensive, inclusive, and far reaching fisheries policy development process ever conducted in South Africa. The report of the FPDC was handed to the Minister in June 1996. It was understood that this report will form the basis of a white paper on the sea fisheries policy.

    Regarding access rights, the FPDC looked at the number possible solutions to facilitate the entry of historical disadvantaged people into the fishing industry. One of the models outlined a particularly useful and effective way of transferring access rights to historically disadvantaged people. In terms of this model the following example was used to illustrate how the procedure might work. If the company hold rights to particular fishery, these rights should be reduced by a total of (10%) spread of a period of 5 to 10 years i.e. a process of attrition amounting to about (1 - 2%) per year. This process can be followed by each company with respect to the existing rights in particular fisheries. After the reduction of rights has taken place, a second phase could begin in the terms of which the holder should be granted long term security, guaranteeing possession of the remaining rights.

    During phase one, potential new entrants should be assessed to ensure that they have adequate potential and capacity to make of the rights which for which they apply. They should pay a purchase price of the right allocated. They should also be able to receive financial and technical assistance from the state. The state will be able to use the income from the purchase prices for the financial and technical empowerment of the historically disadvantaged entrants.

    The FPDC also outlined other examples of changes that could create opportunities for new entrants:

    RESPONSE TO WHITE PAPER

    The white paper does not address the needs and aspirations of the victims of apartheid, including artisan fishers, fishing communities and workers. Further more it does not recognise the important contribution that workers has made to the development and wealth of the industry.

    It does not offer a political settlement does addresses the wrongs of the past, in the terms envisaged by the RDP. It does not provide the terms and clear times for the restructuring of the industry.

    SUMMARY OF THE CRITIQUE OF THE WHITE PAPER

    The following paper is unacceptable to FAWU for the following reasons;

    The state must make a bold and direct intervention to restructure the industry, so that the needs of the historically disadvantaged South Africans are met.

    Resolves

    PROGRAMME OF ACTION

    FAWU is currently its programme of action. It will include;



2.9 Industrial and Trade Policy

2.9.1. Building an Overall Framework for Industry and Trade Policy

    1. Believes that to reconstruct and develop the economy requires an interventionist state especially with regard to industry and trade policy.
    2. It dismisses "GEAR" as being inappropriate to address the socio-economic and political ills of apartheid industrial policy.
    3. We reject free market purity in favour of interventionist policies. But we do not want the removal of market forces altogether. Market forces on their own will not build internationally competitive industries and they will not always work in the national social and economic interest. For example, market forces may not see the value in generic education and training but rather favour expenditure on narrow short term task-specific skills. An interventionist approach could employ taxation sticks and incentive carrots to encourage industries to invest in education and training.
    4. We have to move our industry policy away from the bias towards commodity production to a strategy for the development of more high value-added products for both domestic consumption (import replacement) and exports. COSATU believes that current strategies (e.g. cluster studies, Spatial Development Initiatives) place too much reliance on existing commodity and semi-processed raw material production as the basis of industry policy. This is particularly important as the continuing support and extension of these industries (e.g. the new ISCOR plant at Saldanha) encourages capital intensive production rather than labour intensive production.
    5. We will argue out our interventionist policies in NEDLACís Trade and Industry Chamber. It will also have to do some hard thinking about which sectors offer long term growth potential and which ones donít. There are some areas where the high skill, high wage scenario cannot survive and it will be necessary to develop adjustments for those industries or sectors. Some of these sectors employ COSATU members so our attitude will have a direct effect on their employment.
    6. South Africaís economy and particularly its labour market are impossible to separate from the Southern African region. Since the election of a democratic government, our regional neighbours are complaining more and more that their less protected industries are swamped with products from South Africa. There is no value for South Africa in destroying the regionsí industries as they will eventually be unable to pay for South African imports and our industries will suffer.
    7. Instead we should see the region as the greatest long term potential as a market for South African goods and services. However it will remain potential for as long as it is economically underdeveloped. In the development of the Southern African economies we should not only rely on private investment but also use the potential for collective action by public enterprise (e.g. transport, utilities) to increase regional economic growth.
    8. In developing sectoral industry policies we should be conscious of the potential for co-operative development particularly in those industries that our cost structure cannot sustain. Japanís use of its Asian neighbours represents a useful, if not always savoury, model of this process.
    9. Practically for COSATU this means a greater emphasis on our international activity in our region.
    10. An Industrial Policy must have a local content provision in the final product.
    11. We reject the current relaxation of local content provision as it has led to the collapse of the white goods sector and the envisaged telecommunication agreement with AT&T.
  1. NUMSA
  2. COSATU

2.9.2. Tariff reduction and Trade barriers

    1. Tariff reduction without supporting policies in affected sectors leads to job losses.
    2. We object to the governmentís rapid reduction to the agreed time frames.
    3. We therefore call for an immediate moratorium on any further reductions particularly those sectors that are geared towards the support of the RDP.
    4. We call for the setting up of a tripartite-partite forum funded by the IDC to do an audit of the effects of tariff reductions on particular sectors or industries and make proposals to renegotiate the agreement with WTO. This forum should also investigate how foreign policy impacts on those trade agreements.
    5. We support the proposal by COSATU for the replacement of GEIS (hasnít this gone now???) with a National Restructuring Fund that assists companies to address the fundamental problems of lack of competitiveness in the areas of education and training, technology upgrades and work organisation.
  1. NUMSA

2.9.3. Investment patterns

    1. GEAR is advocating for economic conditions for foreign investment.
    2. Foreign investment has not been directed at improving productive capacity and creating jobs but rather in new management techniques, technology, malls etc.
    3. Government has cut its investment in social expenditure.
    4. We therefore need an Investment Code that will require prospective investors to do the following:
    5. Invest in boosting the productive capacity
    6. Invest in labour intensive sectors that create jobs
    7. Emphasis to be on training and skill development
    8. Adherence to labour laws.
    9. The IDCís future role should be geared towards job creating activities that address the basic needs of our people.
    10. We recognise the current problem of the IDC now in that it concentrates on mega projects which create very few jobs. We call for the reorientation of the IDC from its focus on capital intensive mega projects to incorporate labour intensive projects as well
    11. The IDC board should be restructured and a labour representative be seconded to the board.
    12. Local investment socio-economic upliftment programmes be encouraged through 5% procurement of retirement funds.
    13. Government should invest in infrastructural developments.
  1. NUMSA

2.9.4. SMMEs

    1. Government should provide incentives to SMMEs but not at the expense of workers
    2. SMMEs should be used as a tool for collective empowerment instead of self-enrichment.
  1. NUMSA

BLACK BUSINESS

    1. The efforts of black business, and managers to secure support for their advancement and progress, as victims of apartheid.
    2. The practice of many black business to exploit workers, undermine industrial council agreements and flout health and safety standards.
    3. The tendency by some black managers to secure their own advancement in the corporate world, through on the one hand, harsh policies towards workers and on the other hand emphasising their own blackness.
    1. To campaign that any special affirmative action for black business must be linked to respect for workers rights.
    2. To request COSATU to meet with black business organisations and to discuss labour practices policies.
  1. SACTWU
  2. Noting

    Resolves

2.9.5. CORPORATE GOVERNANCE

  1. NUMSA
  2. We reject participation in corporate governance i.e. participation in company boards. The agenda/interests of employers is not the same as the agenda/interests of workers. In public enterprises our agenda must be to look at how we transform those companies from the bottom right to the top.

2.9.6 Public Works Programmes

  1. NUMSA
  2. These should be negotiated in NEDLAC but with the involvement of unions organising the various sectors.

2.9.7 Customs and Excise

    1. We are experiencing job losses through illegal goods entering our markets and the dumping of goods on our markets. These institutions are still managed by corrupt officials from the old guard.
    2. We therefore call for the restructuring of these institutions to reflect the population and conform to the need of our economy.
    3. We also call for the replacement of corrupt officials and the setting up of a monitoring structure with labour representatives.
    4. Structures in government e.g. BTT must be strengthened to ensure proper monitoring of dumping and reporting to the WTO to ensure that it does not take place.
  1. NUMSA

2.9.8 State Procurement Policy

    1. Pressure Government to ensure that any State Procurement Policy complies with the following conditions:
      1. the policies must not be used to keep firms alive which fail to meet minimum standards;
      2. policies must be transparent so that corruption can be minimised;
      3. establishing competitive relations between firms may not be the most effective policy;
      4. decisions should not be made simply by judging the good or service, but also the production process etc.;
      5. centralised purchasing can only be relaxed after basic standards have been achieved;
      6. the establishment of national markets should not be jeopardised by misguided regional, local or agency devolution;
      7. assistance should be provided for new or innovative firms which are considering tendering; and
      8. purchasing policy should be tied to research and development efforts.
  1. NUMSA
  2. Noting that

    As a large purchaser of goods and services from private Ė and other public suppliers, the public sector is in a unique position to establish conditions that must be met if contracts are to be entered into. Market power can be a mighty effective incentive to suppliers.

    Resolves to

    We further call for

    The restructuring of the state tender board and an immediate institution of a commission of enquiry to investigate contracts that have been awarded. If any government employee is found to be guilty of colluding with parties to get the tender, s/he should be criminally charged. Laws to be passed to enable this to take place.

    And believe that:

    The government should remain a non-signatory to the WTOís Procurement Policy so as to avoid parastatals eg. Eskom, Telkom, purchasing equipment abroad.

2.9.9 Cluster studies

    1. Cluster studies should be needs-driven and linked to RDP initiatives, example housing delivery programme (finished product determine the establishment of clusters)
    2. We reject the notion of export-driven studies
    3. Our participation in the cluster studies should be to defend the interests of workers, particularly changes to work organisation.
    4. We should secure funding (IDC, DTI, Japanese Grant Fund) for training and capacity building for our comrades participating in these structures.
    5. Develop report-back and mandating mechanisms throughout these processes.
  1. NUMSA

2.9.10 Pricing of raw materials

    1. The pricing of raw materials is a major restriction on the ability of higher value added industries to become internationally competitive. e.g. the price of ISCORís steel for a local manufacturer is 60% higher than if the same manufacturer were to buy ISCOR steel in another country. Government can change this both through its ownership (IDC) and policy approaches such as:
      1. import/export controls on strategic materials (energy, steel etc.)
      2. costs and efficiency of transport (rail, road and shipping policy) and communications,
      3. design and environmental regulations,
      4. exploration permits and mineral and energy policy,
    2. Infrastructure development will have a major impact on both basic living conditions and foreign exchange earning industries, particularly tourism.
    3. Governmentís interventions should be biased towards the satisfaction of the basic needs of our people.
  1. NUMSA
  2. Believing that

2.9.11 Incentives

  1. NUMSA
  2. These to be re-evaluated in line with the objectives of the RDP.
  3. With regard to SMMEs the following should be observed:
  4. Adherence to current labour standards
  5. Sustainable job creation and displace employment
  6. Strict monitoring mechanisms on their progress

2.9.12 Competition Policy

  1. NUMSA
  2. To labour, any competition policy should not lead to job losses, down-grading of labour standards and deterioration of social welfare.

2.9.13 Social Accord

    1. COSATU will negotiate with Government around economic policy on two principal aspects. If these two principles cannot be achieved within the Government`s Macro-economic parameters then we do not accept those parameters.
    2. These two principles are:
      • to put strategies in place that protect and restructure our existing formal sector industries while laying the ground work for new areas of employment (a Social Plan). We should focus on developing high value added manufacturing and service industries in the context of increasing Southern African economic co-operation.

      • to put in place a social welfare base (i.e. health care, shelter, transport, and access to economic opportunity - land and capital):

        • that improves the standard of living of those (the majority?) at the bottom of the income scale and

        • provides for those who are affected by the restructuring of formal sector companies/industries.

    3. Should this engagement mean the signing of an Accord between Business, Government and Labour such an Accord will only be agreed to if the Accord would advance the achievement of the objectives outline in point 12 above. Elements of this Accord would have to cover the following, amongst others:
      • all changes to work organisation must engender productivity not competition between workers

      • education and training must provide portable skills, improve productivity, give workers access to technological development, multi-skill workers (and not multi-task them)

      • any agreement on wages of guaranteed inflation plus productivity increases could only be agreed if there is improvement in the social wage of the working class i.e. an increase in social pensions, improvement to public transport, housing, health care, land, legislation to force all employers to pay for retirement funds of all workers in the formal sector, or a combination of all of these.

      • No Accord can be signed on the basis of agreeing to wages less than inflation unless there was some guarantee from Business and Government on effective price controls.

    4. If Government fails to engage with us on the basis of these two principles in point 12 above, then COSATU will find creative ways of engagement including mass mobilisation around specific areas to force Government to move from its restrictive fiscal approach to a redistributive and caring fiscal policy.
    5. We must argue for employment growth through interventionist industry and trade policy in the long term and a safety net of universal welfare, because we are genuinely concerned for a broader constituency than formal sector workers. This is very important because each year our bargaining processes increasingly privatise the health and retirement systems of the country. If the Government sold some of its non-essential assets, the proceeds could provide the capital for nationalising the health care system and extending public transport.
  1. NUMSA

2.9.14 Local content

    1. An Industrial Policy must have a local content provision in the final product.
    2. We reject the current relaxation of local content provision as it has led to the collapse of the white goods sector and the envisaged telecommunication agreement with AT&T.
  1. NUMSA



2.10 Fiscal Policy

2.10.1 Taxation

    1. The tax system is still highly inequitable.
    2. Demands for the reduction in corporate taxes are based on the false assumption that South African companies actually pay high rates of tax.
    3. A thorough ongoing review of the taxation system should be based on the following principles:
      1. All taxes should be progressive (low for the poor, high for the rich)
      2. Sufficient resources should be available for the efficient collection of tax;
      3. The system should allow for effective exemption for unemployed, as well as those who receive disability and social pensions;
      4. Zero rating for basic commodities;
      5. All citizens should be registered for tax purposes;
      6. pension and provident funds should be exempt from tax at retirement;
      7. Effective fringe benefit, luxury, and capital gains taxes;
    4. Should there be no serious attempt to redress the inequities of the tax system then COSATU calls for a major campaign of all civil society bodies and the alliance on tax.
    5. We support the proposal by Government that any SMME which obtains a contract in the public sector must be registered with the Receiver of Revenue.
    6. We urge investigations into how a health card which would give access to basic health services and would be accompanied by proof of lodgement of tax returns, or the registration with the Receiver of Revenue as earning insufficient to pay tax, could assist with widening the net of tax revenue.
  1. NUMSA
  2. COSATU believes that:



2.11 Monetary Policy

    1. We note the importance of monetary policy as an instrument to drive economic policies and delivery of social services.
    2. We reject GEARís provisions as:
      1. They advance high interest rates
      2. They advance a one-sided approach on cutting down inflation
      3. They encourages us to consider a mythical notion that the lack of investment in South Africa is the result of non-saving.
    3. Reserve Bank
      1. We demand the restructuring and democratisation of the Reserve Bank.
      2. Elected representatives should control the Reserve Bank.
  1. NUMSA



2.12 Labour Market Policy

    1. We reject the governmentís and businessí proposals on Labour Market Policy as they advance:
      1. The lowering of labour standards
      2. Job losses
    2. We believe that Labour Market Policy should:
      1. Close the apartheid wage gap
      2. Train and develop the workforce
      3. Through NEDLAC guide the impact of Public Works Programmes to ensure training in communities and job creation.
    3. Outsourcing
      1. Outsourcing should not downgrade conditions of employment of workers in the same industry
      2. The employers should consult unions 6 months prior to outsourcing.
      3. There should be full disclosure of information.
    4. Labour Brokers
      1. These should be regulated and workers in these sectors should enjoy full rights and benefits of full-time workers.
    5. Wages
      1. Wages should be separated from productivity incentives.
      2. There should be a national minimum wage.
    6. Training and skill development
      1. All workers should enjoy access to paid training.
      2. We support COSATUís position on a 4% levy on companies for training.
  1. NUMSA

2.12.1 SCAB LABOUR

    1. The damage caused to worker interest by scabs who work while the majority of workers are on strike.
    2. The large scale unemployment which makes it easy for employers to employ scab labour with the result that employers refuse to bargain in good faith, or seek to bring strikes to a speedy end.
    3. The violence associated with scab labour.
    1. The social consensus in most of Europe, not to use scab labour.
    2. The legislation in parts of Canada, which prohibits scab labour.
    3. The statement made by the ANC, before and after the election that it is against scab labour.
    4. The lack of a prohibition on scab labour in the Labour Relations Act.
    1. To campaign for the prohibition of scab labour in legislation.
    2. To call on the government to put an end to the use of scab labour through:
      1. Requiring companies which tender for government contracts, to sign an anti-scab code.
      2. Requiring companies receiving any government incentives, such as export and regional economic development incentives, to sign an anti-scab clause.
      3. Agreeing not to use scab labour in areas of the public sector, and parastatals, where workers are striking legally.
    3. To campaign in all industries for an end to scab labour, by putting a demand to employers in all our bargaining forums.
    4. To link any discussion on productivity at plant level, with a demand for an end to scab labour.
  1. NUMSA
  2. Noting:

    Further noting

    Hereby resolves

2.12.2 Labour Legislation

    1. That South Africa has and is in the process of transforming Labour Relations, basic conditions of employment, skills training and other Labour Associated Laws and statutes within the period of the first five (5) years of the new democratic government
    2. That some of these Laws are more directed towards co-determination than broad Labour would prefer and therefore pose the danger of directing the working class agenda into co-optive associations with Capital
    3. The union is challenged to face the implications occasioned by the new Laws either by adjusting its organisational practices and policies and or by restructuring itself and thereby locate itself for maximum exploitation of the opportunities located by the new Laws
    4. The union held various workshops and meetings with a view to arrive at policy formulations as a result of the new LRA. Many positions have been adopted but remain largely unknown to members and or are not coherently presented as policy
    5. The new LRA falls short of providing organised labour with its objectives
    6. There remains a number of fundamental issues still to be included in the new LRA
    1. In factories where we are organised, non-members also benefit from any agreements on improvement on wages and conditions of employment.
    1. That COSATU must fight for better than minimum provisions which are reflected in the LRA; and in that regard, ensure that it includes demands on the following provisions :-
      1. the duty to bargain
      2. the right to strike over individual dismissals
      3. the right to strike
      4. exclude the right to lock - out
      5. an improved severance package - of no less than four (4) weeks per year of service - for retrenched workers
      6. when challenging the unfairness of a retrenchment, COSATU must demand compensation for the loss of future earnings and personal belongings
      7. COSATU will embark on a campaign, through collective bargaining, to fight for the above issues to be agreed by employers in the industry different industries.
    2. That CCMA Commissioners not include Company Industrial Consultants - whether presently practising or not
    3. COSATU must re-affirm the current policy around Workplace Forums
    4. COSATU would pursue the fight for duty to Bargain as an amendment to the LRA.
    5. COSATU should remain opposed to workplace forums as per the provisions in the LRA. Powers of Work Place Forums must be transferred to the Shop Steward Committees. The EXCO will be responsible to co-ordinate these activities.
    6. The Congress mandates the EXCO to open and initiate comprehensive discussion on the Close Shop and study its implication at all levels.
    7. In order to address the problem of free-riders, COSATU affiliated unions should trigger the Agency Shop as stipulated in section 25 of the new LRA where unions are in majority.
    1. COSATU will continue to campaign for better workers rights.
    2. COSATU encourage the continuation of the process for the membership Education on these Laws. The Congress instructs its Education structures to reflect this objective in its annual programmes of Education.
  1. CWIU
  2. Noting

    Believing that

    We therefore resolve

    ACTION PLAN

2.12.3 Women Workers

    1. The proposed BCE Bill has many provisions that will affect women workers negatively such as;
      • Downward Variation which will allow companies to attack maternity and child care rights,

      • Responsibility leave is only three days and includes compassionate leave and excludes casuals,

      • It provides for sick leave to be reduced to 75%, in exchange for an unpaid day off,

    2. That companies will use these provisions by reducing the sick leave and maternity leave,
    1. To reject the variation model of the BCE Bill and campaign for all rights be extended to casuals and tempís. (1997)
    1. There is a need for extensive challenge of the sexual division of labour and stereotypes that limit women`s access to certain positions.
    2. Encourage employment of women in our sectors and abolish gender bias in promotion and recruitment procedures (e g biases in advertisements
    3. Employers should implement affirmative action programmes to redress the sexual division of labour by employing females in typical male jobs.
    4. Education & Training in companies should target women and ABET should be run during working hours with paid education leave.
    5. Job-creation schemes should prioritise the employment of women.
    6. The state & employers should assist with the implementation of childcare facilities to facilitate the full participation of women in the workplace and with parental rights agreements.
    1. That COSATU work towards an increase in the employment of women in all areas of work and especially in higher paid job categories. This requires a conscious attempt to integrate gender aspects in COSATU affiliate wage policies by linking the demand of equal wages for equal work and equal wages for work of equal value to the living wage campaign. This will ensure that affiliates take up the struggle against the oppression & exploitation of women, ensuring that this is not regarded as a "women`s" issue but a problem of every member of the union.
    2. Women and men should have equal status in all facets of life.
    3. Present ideology plays a major role in restricting women to typical female jobs. Education from pre-school to tertiary education is necessary to combat a stereotype sex role.
    1. We need to devise mechanisms that will empower women in the federation.
    2. Further develop education & training modules (on women` needs).
    3. Develop organisers to understand women`s demands/concerns.
    4. Encourage male comrades to take part in gender education programmes so as to raise understanding of the concept of gender.
    5. Integrate gender into mainstream union activity.
    1. We should implement an affirmative action campaign including training shop stewards to serve as Affirmative Action officers.
    2. Campaign for safe transport.
    1. Support implementation of CEDAW, Beijing Platform of Action and the Womenís Charter for effective equality.
    2. Participate in the process towards the formation of a movement for the emancipation of women.
    1. Sexual harassment must be outlawed.
    2. We need to define policy principles and adopt a code on Sexual Harassment.
    3. Such a code to include sections on:
    1. To start and intensify the environmental awareness at schools, churches, workplaces and in the community at large.
    2. To direct the cleaning campaign towards employment creation through the recycling of materials like paper, tins, aluminium, steel, iron, copper etc.
    3. That youth and women in particular, as they form a higher percentage of the unemployed, should be fully trained to play an important role in the recycling process.
    4. That our training and education institutions should promote the recycling process as an important light industry.
    5. That the government should provide financial assistance towards the establishment of this light industry.
      • confidentiality
      • report procedure
      • procedures for settling grievances
      • informal procedure
      • correctional / disciplinary procedures
      • dispute resolution
      • implementation of policy.
  1. CWIU
  2. Women and the Basic Conditions of Employment Bill

    Noting that:

    Therefore resolve

  3. NUMSA
  4. 1 In Employment / at the Workplace

    2 Wage Equity

    3 The Federation

    4 Implementing these ideas

    5 Women everywhere

    6 Sexual harassment

    7 Women in the wider community

2.12.4 Wage Accord & Policy

    1. COSATU should avoid entering an accord which leads to deteriorating employment standards and wage freeze.
    1. That apartheid emolumentary policies created a lot of disparities in the conditions of service for all workers.
    2. That such policies were structured along skills and racial lines.
    3. That the majority of workers are unskilled because of lack of proper training at the workplace.
    4. That current wage negotiations in the public service are not favourable to the principle of reducing the apartheid wage gap.
    5. That the top bureaucrats in the public service still earn on average twenty times more than the lowest paid public servants.
    1. That the governmentís wage moderation strategy avoids dealing with the existing wage gap.
    2. That signed agreements in both the public service bargaining chamber at the central level and the Education Labour Relations Council would assist in the reduction of the wage gap if properly implemented by the government.
    3. That broad-banding principles are still necessary to reduce the wage gap with the exclusion of performance related pay.
    1. That wage negotiations in the public service be entered into with a view to reducing the wage gap.
    2. That the government be caused to agree to an annual wage increase of no less than the rate of inflation as a matter of policy.
  1. NUMSA
  2. SADTU
  3. Noting:

    Believing

    Therefore resolve:

2.12.5 Affirmative Action

    1. Prior 1994 elections companies and everybody accepted the need for restitution.
    2. Affirmative Action was seen as a need and everybody was prepared to implement it.
    3. The government has not yet legislate Affirmative Action.
    4. The co-operate world today doesn`t see the need of Affirmative Action only parastatals do affirm.
    5. Our legal system doesn`t protect the Affirmative Action hence prosecutors have challenged appointments of this nature
    6. Our commitment to none racialism has compromised affirmative action
    1. That the government must legislate the Affirmative Action how, and it should prescribe the quota`s / demographics and should have penalties on companies that do not perform.
    2. To use the parastatals to ensure that blacks are affirmed like the poor Afrikaners.
  1. SARHWU
  2. Noting:

    Believing

    It is the duty of the government to level the playing field and to upgrade those who were previously disadvantaged.

    Resolving

2.12.6 Health and Safety

    1. Government should subsidise the costs of medicines to assist the poor.
    2. There is a dire need for education on AIDS awareness:
    1. Government should not run these AIDS awareness programmes
    2. More research must be done in order to find a cure for the disease.
    3. There should be no discrimination against people/workers who have contracted AIDS.
    4. There should be no tests for AIDS for purposes of employment.
    5. Proper provisions relating to core schemes, medical aid, provident fund and insurance schemes to take care of AIDS sufferers.
      • what is it?
      • how is it transmitted?
      • how to avoid it?
      • consequences thereof?
  1. NUMSA
  2. AIDS

2.12.7 Child Labour

    1. Child labour is fast becoming a problem internationally and in South Africa as it transforming itself in several aspects including child prostitution.
    2. Statistics are not readily available in our country as it had been neglected by the previous regime. This has not yet received enough attention by our own government.
    3. The South African society still needs to be conscientised about the negative results of child labour.
    4. The only available checking mechanism is through the Identity Document which is obtainable at the age of 18 years, which also becomes available at the age of 18 years, which also become the age limit in which children become eligible to vote for a government.
    5. Those who are making children to work are trampling on their rights and needs as children.
    1. The labour movement has a moral responsibility to protect and care for these children.
    2. COSATU could play a leading role in initiating campaigns linked to the UNICEF to highlight the plight of these children.
    1. COSATU and the Alliance should campaign for laws to protect and eradicate child labour.
    2. The voting age and Identity Document age limit should either be reduced to 16 years or the child labour age should be 18 years.
    3. COSATU should mobilise funds for the campaigns to highlight the plight of the children.
    4. COSATU to mobilise / pressurise government to implement ILO Conventions.
  1. SAAPAWU
  2. Noting that

    Believing that

    Therefore resolve that

2.12.8 Jobs Summit

    1. We welcome the Job Summit initiative.
    2. All parties should make their agendas public for the job summit.
    3. All parties involved in the Summit should openly declare their willingness to review the economic policy and explore on the content and where possible look for alternatives.
    4. There should be an Alliance Summit before the Job Summit where the Alliance partners should look at the content and agree on an approach.
  1. NUMSA



2.13 Workplace Democracy

    1. We need to be productive, but as a union we reject the ideology and proposals for competitiveness.
    2. We will oppose any attempt to make us compete against our fellow workers.
    3. We should reject the new management and production techniques, as they do not lead to genuine worker participation and democratisation of the workplace.
    4. that instead of focusing on making different companies competitive, as a union we should devise industrial policies that will lead to:
    1. We need industrial policies and industry-wide frameworks to deal with the issues identified below.
    2. We adopt the following Guidelines on how to deal with elements of the new production and management system

    1. that as a federation we recommend that COSATU affiliates should not trigger workplace forums
    2. that instead of getting involved in co-determination structures, affiliates should fight for extended collective bargaining to negotiate issues relating to production and issues which up to now have been regarded as management prerogative
    3. that affiliates should put to employers in the next round of negotiations that at:
      1. investment decisions
      2. changes to company structures
      3. strategic business plans
      4. targets, schedules and line speed
      5. production planning systems
      6. quality issues
      7. personnel planning
      8. new work methods and work re-organisation
      9. restructuring the workplace
      10. product development plans
      11. introduction of new technology
      12. merit increases and bonuses
      13. company social responsibility programmes
      1. national frameworks on how to deal with the above issues at plant level
      2. industry-wide model disciplinary code
      3. industry-wide guidelines for hiring, transfer and promotion
      4. guidelines on mergers and transfers
      5. guidelines on partial and total closures

    1. that in our fight for the above we must insist on:

    1. the right for the union to be directly involved in the negotiations. In multi-union plants and where management argues that we are not representative, we must opt for joint union structures where unions that are active in the plant will be proportionally represented
    2. voluntary dispute resolution mechanism
    3. the duty of the employers to disclose information
    1. 200 hours of training should be guaranteed but not limited for all workers.
    2. Training should be offered during working hours. If after working hours, it must be paid.
    3. How this works must be dealt with at plant level.
    4. Fight for the creation of a labour pool at industry level and deal with details at a plant level.
    1. The process must be jointly administered by management and union. Both parties must be trained as RPL assessors.
    2. RPL is compulsory for employers but assessment of employees is up to the employee concerned.
    3. No employee must be down-graded as a result of a RPL.
    4. Interviews, demonstrations, written tests, portfolios, will be used to assess workers.
    5. All skills acquired must be paid for, even if they are not being used or applied.
    1. The union must intervene both at shop-floor level and at a macro-level where industrial and macro-economic policies are being made. The survival of companies depends not only on shop-floor restructuring but also on a vibrant and interventionist industrial policy. For example, on the policies on the price of raw materials and government support for industrial development.
    1. Employers must negotiate with unions on work re-organisation by giving information, and discussing their strategic plans with unions
    2. We must fight for employment security, job creation and resist lowering of manning levels through natural attrition.
    3. Wages and bonuses must be separate.
    4. A company must give 6 months notice of the introduction of new technology. This notice period must be before the decision to purchase the machinery has taken place.
    5. Teamwork is only acceptable if:
    1. All productivity payments must be separate from the base rate.
    2. All productivity gains must be shared equally. When dividing this equally, comrades at plant level can consider tax implications.
    3. Productivity must be a matter for negotiation, not consultation.

    • the development of our productivity capacities
    • job creation

    • strategic business plans
    • introduction of new technology
    • use of machines and line speed
    • plant utilisation and layout
    • benchmarks, targets and production schedules
    • product development plans
    • work organisation and work processes
    • quality assurance programme
    • working time and patterns
    • company and organisational structure
    • investments in human and capital resources
    • social responsibility programmes
    • training and skills formation
    • grading
    • personpower planning
    • affirmative action programmes
    • productivity and performance assessment
    • remuneration, bonuses, incentive schemes and wage structure
    • wealth sharing schemes and dividends policy
    • the union triggers the teams

    • work teams have a real say over targets, line speeds etc.

    • team leaders are democratically elected and rotated

    • team leaders canít take disciplinary action, this to remain with management

    • the union can take up production issues

    • the union can meet with its own members outside of the team

    • participation in teams is voluntary

    • shop stewards can address team meetings and union-related issues can be discussed in green areas/team centres

    • the team does not have to meet its target if one of its members is absent.

  1. NUMSA
  2. Competitiveness and new management techniques

    We resolve that

    a. Issues for negotiations

    For many years management has unilaterally restructured our workplaces. But the campaign of restructuring by management has intensified as each company strives for competitiveness.

    Depending on the company`s agenda, unions have or have not been involved in the process.

    Big and wealthy companies have tried to implement their restructuring proposals with the blessing of unions.

    It is high time that as a union we should put forward a programme of workplace democratisation, in line with our ideal of workers control. As a union we must demand that the following issues should be negotiated with unions:-

    By demanding that the above be negotiated with unions, we are calling for collective bargaining rights to be extended to the areas highlighted above.

    b. Extension of collective bargaining calls for clear dispute resolution mechanism

    Whenever we negotiate workplace change programmes we must insist on dispute resolution mechanisms that will give us the space to choose what weapons to use to further our interests.

    It is for this reason that we must reject proposals for compulsory arbitration. Arbitration must be voluntary and we must reserve our right to take independent action if we are in dispute on the above issues.

    1. Workplace forums

    Hereby resolve

    - Company level They demand to have the right to negotiate on:

    - Central level The need for:

    2. Training:

    3. Recognition of Prior Learning (RPL)

    4. Work re-organisation/shop-floor restructuring:

    At shop-floor level:

    3. Productivity



2.14 Funding of Public Education

    1. That apartheid education has generated vast inequalities regarding:-
      • Resources
      • Skills
      • Process of Learning
    2. That every single aspect from pre-school to university level was marked by an inequitable balance biased in favour of the historically white communities.
    3. The need to compensate for ravages of apartheid education which will inevitably include upgrading the educational infrastructure, facilities and educational input.
    1. That attainable policies are in place to ensure equity and redress.
    2. That target educational funding becomes critical for underdeveloped and rural communities to benefit in a qualitative way.
    1. That public schooling as enshrined in the government legislation is irrevocably the only way of ensuring that every child has access to education without fail.
    2. That the government has both political and moral responsibility to bring about social justice in education.
    3. That under-funding of public education will give private education an unfair advantage in terms of the quality of education.
    1. That the federation ensure adequate funding of public education by the government.
    2. That a campaign be embarked upon by the Federation where reasonably possible to ensure that public education is not undermined.
  1. SADTU
  2. Noting

    Further noting

    Believing:

    Therefore Resolve:



2.15 Rationalisation in Education

    1. The need to right-size the educator sector in accordance with the government policy and available resources.
    2. That the educator sector is inevitably labour intensive in its nature.
    1. That the agreement on rightsizing in the Education Labour Relations Council (ELRC) has no room for retrenchment.
    2. That right-sizing of the educator sector is done in order to achieve equity in the funding of education between provincial education departments.
    1. That any form of downsizing in education be vehemently opposed.
    2. That the educator sector be upsized where necessary and further that retraining of educators be embarked upon to enable educators to contend favourably with the challenges of the new curriculum.
  1. SADTU
  2. Noting

    Believing

    Therefore resolve



2.16 Union Investment

    1. The majority of COSATU affiliates as well as the federation itself have embarked on an investment spree.
    2. These unions have also established investment companies.
    3. There is no clear-cut policy on investment and investment companies.
    4. That union investment in companies resulting in workers taking up positions in the management of these investments - it is not worker control but co-option.
    1. COSATU has the right to manage its resources, including its investments.
    2. In order to have a proper management of financial resources, COSATU requires a clear investment policy.
    1. To campaign vigorously for independence from capital and to oppose investment companies and all forms of co-option
    2. To oppose the establishment of investment companies.
    3. To call for COSATU to invest its resources in socially useful projects that will lead to the rise in the living standards of life for the deprived communities.
    4. To make sure that the poor and working class will benefit collectively from such investments by the union.
    5. Such socially useful investments can take the form of making money available from our Provident Funds for building houses, clinics and other necessary infrastructure. The majority of Provident Funds money should be invested in government bonds and enabling legislation to this effect must take place, this should include tax incentives for such investments.
    6. To make sure that the above is possible, COSATU must fight for the control of the Provident Funds.
  1. CWIU
  2. Noting that

    Believing that

    Thereby resolve

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