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Address by COSATU Provincial Secretary, Tony Ehrenreich,Input in Unions in the Global Econoy at Cornell University in New York- April 2005 |
Unions in the global economy
Speech by Tony Ehrenreich, COSATU Western Cape Provincial Secretary, at Cornell University, New York, U.S.A. April 2005
Introduction
Let me at the outset express my gratitude for the opportunity to exchange ideas on what is central questions confronting trade unions across the world. The quest to building a world predicated on social justice is one that workers throughout the world are grappling with. The engagement with institutions like yours gives us all an opportunity to stand back and reflect on the challenges and the appropriateness of our responses In times of rapid change like we have seen in the last 3 decades, the ambiguities in our society increases and there is no doubt that this throws up immense challenges that cannot be responded to by dogma, but must force us into a conversation that tries to define global solutions that are supported by local actions.
Each labour movement across the world will respond to these questions and challenges, mindful of both its own culture and history, but also the levels of economic and social development in its own country. Our own perspectives as Cosatu is borne out of a great victory over the scourge of apartheid, a victory made possible by the selfless sacrifices of people within South Africa, but also because of the sacrifices contributions and solidarity of many international communities, including your own organisation and institutions. For this we are both grateful and challenged to reciprocate, in struggles elsewhere. Argentina, Zimbabwe and China are probably uppermost in the list of those needing global solidarity.
There are 3 areas of focus in my comments
SA and its direct impact from globalisation consequences options for the future
History of Cosatu political development
Our federation, Cosatu was forged in the struggle against apartheid and had naturally taken on a range of issues that had extended well beyond the shop floor. This is what we call social trade unionism, and it is a tradition that we sustain. Making sure that we engage on the shop floor and industry questions, but also never neglecting the broader struggles within our society around poverty, unemployment and social service delivery.
The social issues like HIV aids, education, health care, public transport, and housing
Alliance
It is this broader agenda that was the corner stone for the tri-partied alliance in South Africa, between Cosatu, the ANC and the SACP. Whilst this alliance led the national liberation struggle, it continues to be an important vehicle in the deepening transformation within our society and the engagements on the continent and globally. This alliance forged in the struggle against apartheid makes it difficult for the ANC government, who is taking more and more conservative positions that go against the interest of working families, to try and marginalise Cosatu.
10 years on
When we look back at the dawn of the first decade of democracy there is no doubt that the changes in South Africa have been far reaching. For a women who walked for miles for water and firewood that today is able to turn on a tap and a stove, the changes have indeed been revolutionary. For the extensive legislation that continues to drive the agenda of change in race and gender relations we are held up as an example for the world. The fact that our democratisation had happened in a climate of relative peace is in itself an achievement and a testimony to the enduring alliances that were build during this period of struggle and liberation. The advent of our democracy has happened at a time of rapid globalisation that signalled the dominance of the neo liberal agenda. Whilst we had achieved great successes in changing the political construct in SA the economic construct remained largely unchanged.
Compromise why
Some would argue that this is as a result of outside interest that played an instrumental role in the process of change within South Africa SA experienced a controlled transition from racialised to deracialised capitalism , that then paved the way for the integration of SA into the global economy. The transition was limited to a change in the political system while leaving the economic structures largely in place. An agenda of radical reforms in SA would have sent a signal across the world that transitions are only complete when the economic and power relations have also been dealt with . we have come a long way but we also missed an opportunity. This may have to be analysed in the prevailing balance of power at the time.
Today business realises that there has to be some economic accommodation and so supports the notion of black economic empowerment , but this is really just a situation where black political leaders are using there struggle credentials to get into business and legitimate unequal ownership, instead of insisting on greater social justice being advanced through BEE.
The changes in SA are interesting because they raise the question of whether it is possible to have national alternatives of transforming social and economic structures in the context of a global regulatory framework of neo liberalism, that essentially undermines the role of the nation state in defining its own policies.
consequences
The consequences of the neo liberal agenda and conservative policy choices within South Africa have had the following effect.
Trade liberalisation
Our integration within the global economy as a signatory to the WTO has obliged us to reduce our tariffs in a way that led to a surge of imports. These imports have seen more than 1million jobs being lost in the manufacturing sector. The clothing and textile industries have been decimated. The engineering industries in the midst of an electrification drive that pushed up demand for electrical appliances had seen white goods manufacturing capacity virtually collapse because of cheaper imports . These global trade rules have also removed the potential for developing countries to use tariffs as a safeguard against infant industries , as the USA and EU did during there periods of industrialisation . The question must then be asked how does developing countries move up the value add chain and build high value add industries if they cannot support those industries in the short term . This condemns developing countries to exporting raw materials and importing high value add products, thus maintaining the poverty trap they are in
Sector summits
Pharmaceutical products and food processing had taken a huge knock. Many of these on the back of subsidised imports from the US and the EU. During this period unemployment rose from 16% to close onto 40% of the South African work force. This represents about 8 millions workers who have no income or prospects of employment, through no fault of there own.
The above factors along with casualisation, labour brokers and subcontracting had seen good jobs being replaced by atypical types of employment that led to a decline in the aggregate levels of income in working class communities. This decline in income in the bottom 60% of the society has seen the levels of inequalities in the society increasing. This in a country that already had a genii coefficient second only to Brazil in the early 1990's.
The governments drive to privatise has seen a number of social services being threatened. This had a bearing on water, telecommunications and transport and health care.
Fiscal and monetary policy especially high interest rates, and cut in budget deficits have had a contractionary effect on the economy ,with sluggish growth being the result . the last 2 years have seen increases in growth rates on the back of exports in raw materials.
The cut backs in social expenditure have also seen many public service workers loose their jobs.
social security the demand for a basic income grant is continually rejected by government even though this at worst would cost about 30 billion a year - government has given tax cuts to the wealthy and corporations amounting to about 60 billion rand over the last 8 years , this money could have been used to fund the basic income grant, in some vain hope that it would trickle down to the poor - poverty and unemployment is a tax on the poor, as it is poor workers who support their brothers and sisters who do not have employment.
Institutional framework result of friendly state
Cosatu is a federation of 2 million workers that is located at varying levels of organising in different industries. The clothing, mining and engineering industries have about 40% unionisation rates while the agricultural and constructions industries have at best about 10% organising levels. We have a policy of one union one industry and one country one federation, and so have been able to build fairly powerful institutions in some of our sectors. Clothing, metals and mining have national centralised bargaining structures called bargaining councils that negotiate from wages to conditions of employment as well as social funds e.g. medical aids, pensions, maternity benefits.
We have an employment conditions commission where we as business, labour and government set conditions of employment for vulnerable sectors like taxi drivers, domestic workers and agricultural workers.
We have a tri-partheid institution called Nedlac where business, labour, government and community comes together to reflect on social policy. Government is also obliged to bring any legislative changes that would have a socio economic impact to Nedlac for an engagement. One of Nedlac's main provisions can be found in Section 77 of the Labour Relations Act. This is a provision in the law that allows the union movement after having tabled demands negotiated these with government and business to be able to embark on lawfully protected industrial action. This means we can effectively call a general strike on social policy that threatens our interests as working families.
We also have set up special dispute resolution institutions at which workers can have there disputes arbitrated on speedily, lawyers are not allowed here as the main test is one of fairness.
B.C.O.E is legislation that provides a floor of conditions that all workers are entitled to by law; you cannot contract out of these provisions.
L.R.A. regulates the industrial relations environment for all workers also covers areas of basic organisational rights.
Labour aristocracy - this is a constant criticism about workers who have jobs in the SA labour market , it could not be further from the truth as it is workers who support the unemployed
Picking up the gains - indication of the sympathetic state - joint collaboration to ensure that all workers have access to the legislative framework that has been put in place.
Organisational focus
Building political power for the engagement with both capital and the state
At the organisational level Cosatu has embarked on a 2015 plan that is designed to;
7 Improve our organisation presence amongst workers, unity amongst federations
- Employment equity, quotas for woman.
- xenophobia
- Improve the education amongst our shop stewards and members on union policies and campaigns,
- Maintain and strengthen the principle of worker control in the federation.
- Ensuring working class leadership of the democratic movement in South Africa, including of the ANC
- defending our political gains made during the first decade of democracy,
- Building stronger links with civil society,
- Challenging the hegemony of capital at an ideological level -- TINA
- Contributing to the strengthening of the labour movement on the African continent.
- Ensuring that we build greater solidarity with our global allies including the establishment of a more progressive agenda within the ICFTU ,
- But also confronting the global multi-lateral institutions like the ILO, the IMF, the world Bank, the WTO and the United Nations
Federation - vs. - affiliate
There is an ongoing debate within Cosatu about the strength of the federation vs. the role of the affiliates. Whilst there is an appreciation for the role of both, we believe that we have to clearly define the different areas of focus in an ongoing way. The benefits of economies of scale and political influence are appreciated at the federation and the federation does the main political lobbying, in conjunction with the bigger unions who have dedicated lobbying capacity, this applies both to the party and government. The federation drives many of the national and global debates in conjunction with the affiliates. The constant accountability built into the structures minimises the tensions that does exist from time to time. We run an annual recruitment drive in the federation to help get the numbers up in the affiliates. There is a constant engagement and interaction between the centre and the affiliates, overseen by worker leaders so as to ensure that officials [full time employees of the union] don't unduly influence this dynamic relationship.
A programme is presented to the Cosatu executive committee that outlines the work areas and the budget required, the contributions of the affiliates to the centre is determined by this. These debates are robust as they are largely political in nature, but the one principle we absolutely believe in is the sanctity of union organisation, so debates never reach the point where the continued unity is at issue.
The increasing demand for global interaction amongst labour centres raises the need for more effective centres, whilst the relentless attack on the condition of workers on the shop floor demands a response there; we have no option but to find our balance.
Confronting globalisation
There is no doubt that the inequalities between the North and the South are increasing, that the levels of underdevelopment and debt in developing countries and Africa specifically are on the rise. This must bring about greater social polarisation that threatens global stability because of so many people being excluded at the most basic level of survival. This marginalisation and inequalities has also brought about a crisis of legitimacy and authority in the global institutions and so we see social movements rising up around the world resisting and responding to both the policies of structural adjustment programs and the consequences.
In many ways this dissent has brought about a critical mass of organisation calling for greater social justice and questioning the agenda of the multi-national corporations and the emerging type of trans-national capitalism. This neo liberal agenda is being regulated by the multilateral institutions like WTO, WB, IMF, and to a lesser extent the ILO and UNITED NATIONS, effectively undermining the role of the nation state.
This is effectively being characterised as an anti globalisation movement, demanding democratisation of the global system. This crisis of legitimacy as well as the deepening economic and social crises in many developing economies threatens to exacerbate the conflict that is already a feature of the global system. How do we respond to this in a way that avoids conflict at a global level and undermines some of the more reactionary possibilities?
The one thing that is absolutely clear is that the future is not predetermined and we are all the collective agents of this future, hence the necessity for greater global cooperation.
There are a range of possibilities some of which are outlined here,
- Global fascism founded on increased military spending and wars to contain the downtrodden and marginalised across the world , this degeneration of the world will be borne out of an inability of neither the forces from above or those from below are able to bring about a resolution of crisis and conflicts
- An alternative to global capitalism must be a transnational popular project predicated on the need for the popular mass of humanity to develop a class consciousness
- Global radical reformist programme that sees the more reformist wing of the WSF and the more reformist of the WEF coming together to work towards such a project of global restructuring.
Global reforms of the multilateral institutions would be infinitely better than the present course. A system of transnational social governance over the processes of global production ,could be the first step in the radical redistribution of wealth and power to poor majorities.
We should harbour no illusions that transnational capital can be tamed, but neither should it be, either or, in the debate, on whether to constrain the power of global elites or to overthrow the system of global capitalism. The two are not incompatible. Local and global actions must be linked to a common programme, if we are to be successful
The one thing that is true beyond all else is that the present course is not sustainable, the deep social and political crisis in the world cannot be ignored, political confrontation is inevitable, and the form is up to us. But a new world that puts people before profits is possible. We can build a better life for all of our people, we must.
Thank you for your interest. Good Luck