COSATU+CEC+statement,+22+November+2007



=COSATU Central Executive Committee (CEC)=

Press statement 22 November 2007
The Congress of South African Trade Unions held a scheduled meeting of its Central Executive Committee (CEC) from 19-21 November 2007. National and Provincial Officer Bearers and representatives of all its 21 affiliates attended.

The meeting reviewed progress during 2007 and identified the following important developments:
 * Assessment of 2007**

The combined membership of all COSATU-affiliated unions has passed 1.9 million – a commendable achievement, on which the meeting congratulated its members. But that figure excludes millions of unorganised workers who need the protection of South Africa’s strongest trade union federation. The CEC resolved to step up its recruitment campaign and agreed that the agenda of all CECs will henceforth have a standing item on recruitment.
 * 1. Membership and recruitment**

The CEC welcomed the merger of PAWE and MUSA to form the Creative Workers Union of South Africa (CWUSA) and noted work in progress to create strong a single nurses’ union by uniting DENOSA and SADNU as part of a strategy to create a single public sector union.
 * 2. Movement towards realisation of the principle of “one union one industry”**

We welcomed the unity that exists between government and civil society as manifested by the existence of a comprehensive National Strategic Programme (NSP) to prevent and treat HIV/AIDS. As we approach World Aids Day 2007, COSATU has been working with government and its partners in civil society to improve the implementation of the NSP to prevent and treat HIV/Aids, and in particular to monitor the roll-out of antiretrovirals.
 * 3. HIV/Aids**

The CEC endorsed in principle the proposal to set up a trust fund to pay the widows and orphans formerly paid by Fidentia and referred it to the NOBs to take forward. There is to be a meeting with the Treasury and FSB next week. Meanwhile it was agreed that the curators must speedily finalise their work to recover the maximum amount of assets.
 * 4. Fidentia**

The CEC noted the formation of the new confederation, SACOTU. COSATU has written to the leaders of its two components, FEDUSA and NACTU, proposing a meeting to take forward COSATU’s longstanding campaign for one, united trade union federation and are awaiting replies. The CEC expressed scepticism of SACOTU’s claim to have 900 000 or a million members.
 * 5. Trade union unity**

Priorities for 2008
The CEC once again put the Jobs and Poverty Campaign at the top of its agenda for 2008.
 * Jobs and Poverty Campaign**

Despite our steady progress to build a new society founded on the vision of the Freedom Charter and the RDP, and the level of political stability and progress in providing basic services to the poor, we nevertheless still confront many challenges arising from our history and the ill-advised adoption of conservative economic policies, which make the full attainment of the Freedom Charter goals impossible. We still face excessive levels of poverty, unemployment and inequality.

Continuing on the present trajectory threatens the fragile social fabric we have achieved thus far. We will not substantially reduce poverty, unemployment and inequality unless there is a major shift in policy. Even under the most optimistic scenario we are unlikely to halve the 2004 levels of unemployment by 2014, let alone halve poverty, if we continue under the current path. Transformation of our society and economy has become a much more urgent task to meet the basic goals of the national democratic revolution to build an equitable and inclusive society.

This underscores the necessity of a democratic and interventionist state. The market will not carry out the reconstruction programme to eradicate decades of social exclusion and economic exploitation. Left to its own devices, the market only perpetuates inequality.

We need faster and shared growth, built on the platform of redistribution and industrial transformation, accompanied by serious efforts to change our industrial structure, create employment, redistribute incomes and assets to the poor, and open the doors of learning to all our young people, millions of whom are still excluded from higher education by their families’ poverty.

There are contradictory directions and shifts in economic policy. There are positive developments, including the adoption of an industrial policy framework, setting of explicit targets to reduce poverty, unemployment and a range of social wage measures. But on the negative side we note the persistence of a disastrous conservative monetary policy, which has resulted in higher interest rates being imposed on society to meet self-imposed scandalous inflation targets.

The fiscal policy remains highly inappropriate for our developmental imperatives. In particular the CEC expressed its disgust that the government is now building a surplus for the next three years, which will slow down public expenditure in the midst of the mountain of developmental challenges.

All these misplaced economic policies have combined to assault the living standards of South Africans, in particular working class communities. As if these were not enough of a burden, the rising costs of basic necessities - food, fuel and education - are devastating the lives of the poor and dragging more into poverty.

The CEC welcomed the decision of the Competition Commission on bread price-fixing but the CEC specifically demanded that the R99 million fine imposed on Tiger Brands should be used to reduce the price of bread, and not simply go into the fiscus, and be passed on to the consumer in higher prices.

The meeting also expressed outrage at Eskom’s proposed 18% price increase. COSATU will, through the existing coalition on the Jobs and Poverty Campaign and others, resist this attempt to impose such a punitive increase. We are canvassing members for a possible general strike if this 18% price increase is imposed.

It was agreed to intensify the struggle on all these fronts in 2008. We are in the process of finalising the demands that we shall submit through a new Section 77 notice to force negotiations on these demands. Should the negotiations fail, COSATU will mobilise the rest of the civil society to support a series of general strikes. We are also going ahead, through mass participation of the working class, to develop an economic charter that will contain the main economic demands of the majority.

Our engagement with the ANC, other allies and government seeks to build momentum towards a progressive developmental strategy focused on large-scale employment creation, reducing poverty and inequality and meeting the needs of our people.

The CEC noted that we are ending the year with a major achievement. The government finally published its Industrial Strategy Policy, albeit 13 years late. This is important, given the ever-looming threat from the developed industrialised countries that want to use the World Trade Organisation negotiations to protect their industries and keep out goods from the developing world whilst forcing liberalisation of our economies.
 * Industrial strategy**

We are disappointed by the veiled attack by the Minister of Finance on the government’s necessary attempts to protect South African industry, in his statement that we must open our economy to the chill winds of competition. Under his brief but disastrous stewardship as the Minister of Trade and Industry, the Minister of Finance opened up the economy to competition, by reducing tariffs by even more than the WTO was demanding. This he did without putting in place an industrial strategy. It was this disastrous path that contributed to the doubling of unemployment from 15% to 30% between 1995 and 2005.

We have continued to highlight the plight of farm workers and their families. COSATU will continue to give top priority to the campaign, spearheaded by FAWU, to improve the lives of farm workers and dwellers by enforcing the laws that are supposed to provide minimum standards and human rights, and force employers to treat them with respect.
 * Farm workers and dwellers**

This year we raised the bar to new heights in the living wage campaign. We will continue where we left off this year, all the more so in response to the assault on living standards by interest rate increases, food inflation, rising costs of transport as a result of the oil prices, etc.
 * Living Wage Campaign**

We shall follow up on the implementation of the public sector wage agreement, specifically around the occupational-specific dispensation, ratifying minimum service level agreements and filling of vacancies that lead to poor service delivery and place huge burdens on the shoulders of the remaining public servants.

Following the welcome Constitutional Court ruling on the Rustenburg Platinum case, we have audited all our demands to improve the protection of workers through the labour laws. We shall be examining how to reopen the Appeal Court ruling in the Fry’s Metal case on retrenchments being justified by employers’ ‘operational requirements’. We shall be presenting these demands to NEDLAC early in 2008 and mobilising our members for the envisaged resistance by the conservative elements in business and government.
 * Labour market**

The CEC set in motion plans for May Day rallies in 2008. We shall build on the highly successful 2007 May Day celebrations. It was agreed to maintain the theme of Jobs, Poverty and Inequality and relate it to the outcomes of the ANC 52nd National Conference. The main national rally will take place in the North West. Other rallies should be decentralised so that they take place close to where workers live. Mobilisation must start now and that publicity material is produced early.
 * May Day preparations**

As usual we shall continue with partnerships with local governments, and the Departments of Labour and Arts and Culture, but the CEC reaffirmed that COSATU must be able to organise its own, politically independent rallies and will never hand over control to government.

This historic conference has been fixed for 25-26 September 2008. A Commission on Socialism has been set up to prepare the agenda and produce discussion papers. The aim of the conference will be to form a united front of organisations that believe in a socialist future and chart the map towards socialism.
 * Conference of the Left**

The General Secretary, 1st Deputy President, 2nd Deputy President and Treasurer, and affiliate leaders, will be representing COSATU at the conference to merge the African sections of the International Trade Union Confederation and the World Congress of Labour in Ghana on 26-28 November 2007.
 * International solidarity**

A day of international solidarity action has been called for 26 January 2008, to coincide with the World Economic Summit in Davos. As well as the stalled World Trade Organisation talks on trade, the event will also highlight global warming, democracy and development in Africa, and solidarity with the peoples of Palestine and Western Sahara.

On 8 December 2008, COSATU’s existing Free State/Northern Cape Province will launch a new structure in the Northern Cape province and thereafter will function as two separate provincial structures.
 * New Provincial structures**

We shall step up our efforts to organise women workers into unions, to ensure that they are elected as shop stewards and into other leadership positions, and to build their capacity, as part of conscious efforts to affirm their position within the trade union movement. We shall implement our quotas, based on the proportion of female and male membership.
 * Revitalising COSATU gender strategy**

The CEC elected COSATU’s delegates to the ANC national conference and reaffirmed that policy questions, not the ‘succession race’, should dominate discussion at the Conference. COSATU is campaigning for the delegates to adopt policies contained in its National Congress resolutions and the many progressive policies adopted by the ANC’s June Policy Conference. We have produced a document (//Annexure 2 attached//) comparing the ANC Policy Conference resolutions with the COSATU’s standing policies in order to educate our members so that they can deepen the already large area of overlaps between the ANC and COSATU policies.
 * Preparation for ANC Conference**

The CEC fulfilled the mandate given by the Fourth Central Committee to finalise the names of other comrades we would like to see serving in the National Executive Committee of the ANC. We are already lobbying to ensure that we achieve the goal of ensuring that the NEC of the ANC broadly reflects its constituency.

Given that the Conference will have long-term ramifications for the ANC and its allies, the CEC looked at possible post-conference scenarios. It agreed that we must evaluate the outcome of the Conference and finalise the debate on how we should position ourselves in the context of this outcome, guided by the main conclusion of our 9th National Congress - that the struggle continues.
 * Post-conference scenarios**

It was emphasised that a united ANC is the top priority, as a divided ANC will not help workers. It would be a mistake however to underestimate the element of class contestation underlying the leadership contests.

The CEC received a report on the follow-up to the 4 October 2007 special CEC resolution on the COSATU President, Willie Madisha. These events have to be seen in the context of the great unity and cohesion displayed at the National Congress and Central Committee, in sharp contrast to media reports of deep divisions. This period has however been characterised by:
 * The unity and cohesion of the Federation**

1) Growing use of newspapers to misrepresent discussions at constitutional structures, most of them based on leaks that appear to be engineered by a small clique that is uncomfortable with a number of radical COSATU policies and the militant role the federation has been playing. 2) Personalising decisions of the constitutional meetings and, through sources, systematically campaigning to present decisions as being taken by the COSATU General Secretary, or the clique he is supposed to be leading. This personalisation of issues has emboldened people such as the ANC’s National Chairperson and its Head of the Presidency to make similar insulting personal attacks on the General Secretary and thus drag down the level of what ought to be a debate about policies to personal abuse. 3) A tendency by some to disown decisions taken in constitutional structures in public or even publicly undermining the decisions taken by the constitutional structures.

It was agreed that CEC members must not oppose CEC decisions in public after its meetings, especially if they are defending a position that was defeated at the meeting, nor to personalise differences of opinion. The proposed Code of Conduct (//see below//) will spell this out and immediate action will be taken against anyone found to have breached these rules.

The CEC agreed there is a need to engage immediately with the ANC to explain COSATU’s position on the Alliance Pact, and finalise more detailed proposals in a document, which will compare and contrast the ANC, SACP and COSATU positions. The CEC was concerned at reports of potential distortions of COSATU’s position, which suggest that we are proposing a ‘social accord’, which is something entirely different.
 * The Alliance Pact**

Preparations for the 2009 election campaign start in earnest in 2008. It will be necessary to plan for the national and provincial elections to ensure that in return for the mobilisation of COSATU’s membership behind the ANC, the federation is able to influence the content of the manifestos and the selection of candidates. As the COSATU congress has pointed out, we shall no longer sign a blank cheque. We need to see how the ANC is able to shift to the left with clear measurable outcomes. We shall evaluate progress at our May CEC as part of finalising our preparations.
 * 2009 elections**

The CEC adopted a draft Code of Conduct for the Federation’s leadership, members and staff and referred it to the NOBs for final editing. The Code has sections dealing with:
 * Code of Conduct**


 * Honesty, loyalty and accountability
 * Discipline
 * Openness and objectivity
 * Self-criticism
 * Professionalism / leadership behaviour
 * Resolving differences
 * Fairness and non-discrimination
 * Honour confidentiality, privileged information and privacy

The CEC discussed the implementation of the 13 September and 4 October Special CEC resolutions, which established an independent commission that will make recommendations to the February 2008 CEC.
 * Taking forward 4th October CEC resolution**

The NOBs have appointed the following persons to the Commission: 1. Charles Nupen, chairperson; 2. Sophie De Bruyn; 3. Advocate Nomazotsho Memane; 4. Peter Harris.

The Commission’s terms of reference are:

1. To determine if the COSATU President, Willie Madisha, did make public statements and the nature of these statements, 2. To determine the impact (positive or negative) of these statements on COSATU, 3. To determine how the President’s handling of the matter may have presented COSATU and the President, and in particular to consider if he brought COSATU into disrepute, 4. To recommend appropriate action that COSATU should take, 5. Depending on the outcome of the investigations in respect of the matters referred to in paragraph 1, 2 and 3, to investigate and to determine the impact of such events on COSATU, its NOBs and the relationship between the President and the NOBs. Without limiting the generality of this investigation, the Commission is required to determine, in particular: a) Whether the recent events have led to a destruction of trust between the NOBs and the President; alternatively, whether there is any level of trust between the NOBs and the President? b) Whether in light of the police and SACP investigations into the donation, the President is still able to discharge his responsibilities as President of COSATU? c) Whether and to what extent the recent events have damaged the reputation of the President and that of COSATU?

The CEC approved detailed terms of reference for the commission, which have been agreed between the NOBs and the commissioners. Hearings will take place in January and February 2008 and they will be held in private. The commission is a private commission and will not be conducted in full glare of publicity. The commission is not probing allegations of a half-million rand donation to the SACP by businessman Charles Modise.

The CEC gave its full support to the 16 Days of Activism against the abuse of women and children, and urges all its members to take part in all the events during the campaign.
 * 16 Days of Activism**

Financial institutions led by the big banks are attempting to undermine transformation of the financial sector. The CEC was shocked that the National Treasury strongly supports big business in its refusal to align with the minimum targets in the Broad-based Black Economic Empowerment Act Codes of Good Practice released by the Department of Trade and Industry in February. COSATU has issued a statement, which is attached as Annexure1 (//below//).
 * Financial Sector Charter**

If the issue cannot be resolved, COSATU will review its position on economic transformation, and financial sector transformation in particular. We will debate whether we should reaffirm the only Charter we need is the Freedom Charter, which called for the nationalisation of the banks.

The CEC approved the following year planner for 2008:
 * 2008 Year Planner & Calendar**


 * **__Meeting__** || **__Dates__** ||
 * **CEC** || 26–28 February ||
 * || 26–28 May ||
 * || 18–20 August ||
 * || 24–26 November ||
 * **PECs** || 23–24 February ||
 * || 24–25 May ||
 * || 17–18 August ||
 * || 22–23 November ||
 * **Provincial Shop Steward Councils** || 19-20 April ||
 * || 08-09 October ||
 * **Fincom** || 07-Feb ||
 * || 09-May ||
 * || 01-Aug ||
 * **NEDCOM** || 21-22 April ||
 * || 21-22 October ||
 * **NGC** || 06-07 May ||
 * || 22-23 October ||
 * **International Relations** || 08-09 May ||
 * || 14-15 October ||
 * **Campaign Committees** || 24-Apr ||
 * || 23-Oct ||
 * **SIC Lekgotla** || 12-13 February ||
 * || 28-29 October ||
 * **NOB Lekgotla** || 18-19 February ||
 * || 03-04 November ||
 * **Conference of the Left** || 25 –26 September ||


 * Annexure 1**

Financial institutions led by the big banks are attempting to undermine transformation of the financial sector by refusing to align with minimum targets in the Broad-based Black Economic Empowerment Act Codes of Good Practice released by the Department of Trade and Industry in February.
 * Financial Sector Charter**

Banks and other financial institutions that participate in the Financial Sector Charter Council refuse to align with the Codes. They are responsible for the country's flagship transformation Charter collapsing before it is even gazetted.

At the heart of the dispute is that the banks and others refuse to increase the Charter's black ownership target to 25%. They want to retain the 10% direct black ownership target. The CEC was shocked that the National Treasury strongly supports big business in its refusal to align with the Codes. It is reactionary and against the national interest for any government minister or department to support the banks and other financial institutions in their efforts to thwart financial sector transformation.

The Charter Council has been assured that Treasury not only supports the refusal to align with the Codes, but also will go so far as to block any compromise that business might propose in the ownership alignment process. This attitude flies in the face of the Codes, which set higher transformation targets overall than the Charter, including employment equity and skills development targets.

Most BBBEE ownership deals in financial institutions to date, including some of the big banks, are less than 10% and would not meet the Codes' criteria for measuring diversity of ownership, including gender and broad-based measures. Aligning with the Codes would require financial institutions to do additional empowerment ownership deals to bring them in line with the rest of the sectors in the economy. How can Treasury support financial institutions, some of the richest in the economy, having lower black ownership than construction, manufacturing or tourism companies? There may as well be no BBBEE policy or legislation if this is the way the key ministry in the sector can ignore it.

The Treasury-Business pact seeks to ensure that ownership targets in the Charter - and the big deals concluded on the basis of these - remain intact and are not aligned with, or measured by, the Codes. This would mean black ownership in the financial sector remains limited to a small elite group and that the massive instant wealth of a few select individuals is protected. We believe this is the crux of the problem - the private sector and government want to protect the few black businessmen and women they have invited into their elite ownership club. The Charter has created a handful of black millionaires, with small minority shareholdings, but it is business as usual at the banks, insurance and investment companies.

Financial sector industry associations, led by the Banking Association, are threatening that increasing black ownership will be seen by foreign investors, rating agencies and international markets as shifting the BEE goalposts. We reject these empty scare tactics as a blatant attempt by the major financial institutions to use the Charter to shield themselves from transformation. It has been clear for the past eight years that the BEE regulatory environment would be settled only when the Codes were finalised. Nothing has changed - no goalposts have been shifted, no uncertainty created.

We believe the industry associations and their member institutions have been highly irresponsible if they have lead investors and shareholders to believe the Charter would protect them against transformation instead of promoting it. Workers have allowed their unions to participate in the Charter because it promised meaningful and sustainable change in the financial sector so that it would serve the interests of all our people particularly the poor and those who were served by this industry. We will settle for nothing less.

COSATU believes that sector charters should require transformation performance at least equal to, but preferably better than, the minimum targets and measurements in the generic Codes of Good Practice. Black economic empowerment should benefit a broad base of participants as envisaged in the BBBEE Act and not be limited to the current small elite. It comes as no surprise that while banks resist transformation through the Charter, they top this week's list of offenders to be prosecuted by the Department of Labour for flouting the Employment Equity Act.

COSATU has resolved to call on its representatives on the Financial Sector Charter Council should withdraw from the Financial Sector Charter Council until it operates in a way that allows representatives to exercise their fiduciary duties and make sure that that there is genuine transformation in this sector. It will thus be necessary for all Charter participants, including business and the Treasury, to engage in Charter negotiations in good faith and not on the basis of secret deals made outside the Council, to protect cosmetic changes.

The Charter must meet the Codes minimum targets, with the proviso that any additional empowerment deals must benefit the working class and genuine broad-based empowerment partners in terms of criteria agreed by the Council.

In the event that consensus cannot be reached on alignment on ownership, COSATU will call on labour representatives to withdraw permanently from the Council and use other forums to achieve genuine and total financial sector transformation.

If the impasse cannot be resolved, COSATU will review its position on economic transformation, and financial sector transformation in particular. We will debate whether we should reaffirm the only Charter we need is the Freedom Charter, which called for the nationalisation of the banks.


 * [|Click for:] Annexure 2, Comparison of COSATU policy with ANC policy, 22 November 2007**


 * Patrick Craven (National Spokesperson), Congress of South African Trade Unions**
 * 1-5 Leyds Cnr Biccard Streets, Braamfontein, 2017**


 * Tel: +27 11 339-4911/24, Fax: +27 11 339-5080/6940/ 086 603 9667**
 * Cell: 082 821 7456, E-Mail: patrick@cosatu.org.za**