COSATU+Memorandum+to+the+employers+and+government

Congress of South African Trade Unions
=Memorandum to the employers and government of South Africa=


 * [Embargoed until 11:00, 27 June]**

The workers of South Africa are on the march today in defence of their jobs.

The catastrophic loss of jobs and shocking levels of unemployment are by far the biggest threats we confront today. Tens of thousands of jobs have disappeared from the productive heart of the economy - mining and manufacturing. Thousands more workers face losing their jobs in the near future.

The unemployment rate is 40% if we count all those who want to work, and close to 30% under the narrower definition that counts only those actively seeking work. Economic growth remains relatively slow compared to other middle-income countries. In these circumstances, we cannot afford to lose any more jobs or economic capacity. Instead, we need urgent action to address the threat to these industries.

Because of mass unemployment and poverty, the loss of a single job means between five and ten people go hungry besides the worker. This aggravates the high levels of poverty and inequality inherited from the apartheid past, something we can ill afford.

At the same time, many employed workers face unacceptable conditions on the job.

The share of workers earning under R1000 a month has remained virtually constant. Even in the formal sector, one worker in four earns under R1000 a month. In the informal sector, agriculture and domestic work, the vast majority of workers get under R1000 a month. Even in the unions, half of our members get less than R2500 a month.

Low pay is reflected in the declining share of wages and salaries in the national income. In 1994, workers got 51% of the national income; in 2004, their share had fallen to 46%. That is an indictment for our democratic society. It demonstrates that there is no easy trade off between low pay and jobs – we have got low pay, and we’re still not getting the jobs.

In economic terms, business, not workers, has won the most since 1994. This is reflected in the fact that profits have risen a share of the national income. Capital successfully lobbied for tight macroeconomic policy and has resisted attempts to transform the economy. Thus, it has effectively sought to shape the direction of the NDR from its perspective, in the main by limiting the economic transformation agenda.

There no doubt that the democratic ANC-led government has registered progress in laying the basis for non-racial, non-sexist democratic South Africa as envisaged in the Freedom Charter. However, the task is far from over – political transformation has not been matched by substantial transformation of economic power.

Poverty and inequalities were the key feature of the apartheid system. The danger is that these inequities become a permanent feature of the new South Africa.

Government seems to be helpless in face of the scourge of retrenchments and is reluctant to intervene to counteract job losses. Government must seek to develop stronger programmes to avert job losses and create sustainable employment beyond the public works programmes.

Yesterday we celebrated 50 years of the Freedom Charter which amongst others declared, “There shall be work and security for all,” and “The national wealth of our country, the heritage of all South Africans, shall be restored to all the people!”

Now we want consistent action to build a better life for all! We want action to end exploitation of casualised, atypical and unemployed workers, and to ensure that every South African can get a decent job.

The strike today and rolling mass action in the coming months represent an attempt by the working class led by organized workers – the leading detachment of the working class - to ensure that in the next decade the trend of continuous decline of workers share of the national income is reversed. In this action, we welcome the support of other groups, including youth, students, the unemployed, faith-based groups, progressive NGOs and others.

The first protest strike and marches are today, Monday, June 27.

Our demands are: 1. From business: a. Business must make much more serious efforts to avoid job losses. Retrenchment and closure should be the last step taken, since they destroy economic capabilities as well as worsening poverty and inequality. b. Mining companies must do more to develop South African industry, rather than focusing on foreign mining opportunities. c. Retailers must stock 75% local goods, cutting back on imports. 2. From government: a. Strong measures to ensure a more competitive exchange rate, including a reduction in the real interest rate and a consistent stance on the part of government spokespeople. The overvaluation of the rand in the past two years has led to a flood of imports and undermined the profitability of the mining industry. In real terms, imports rose 25% between 2002 and the last quarter of 2004, while the volume of exports increased only 5%. The Alliance commitment to a competitive exchange rate has already helped, but must be taken forward more vigorously and consistently. b. Government at all levels should strongly pursue local procurement policies. c. Government must do more to assist businesses to avoid job losses and to help workers confronted by retrenchment. We appreciate the prioritisation of employment creation in government policy documents; now we must see more consistent action to put that commitment into action. d. Government must review its trade strategy to ensure that it stops destroying jobs. The WTO provides for special safeguard measures to protect industries under threat from Chinese imports. These measures must be applied urgently to save the clothing industry. Government must itself initiate safeguard measures to protect vulnerable industries, or as a minimum allow unions to apply for them, rather than business alone. 3. The Jobs and Poverty Campaign supports additional demands from affiliates that relate to employment and workers' conditions. In particular, COSATU demands: a. That local authorities immediately stop privatisation of basic services, which often leads to job losses as well as reduced and more expensive essential services for the poor. b. That SEIFSA immediately desists from insisting that NUMSA agree up-front to exclude SMMEs from agreements reached in the current round of wage negotiations. We demand an immediate end to the intransigence of SEIFSA in the wage negotiations. We reject the peanuts they have offered to the metal workers and join NUMSA in demanding a living wage for its members. c. Employers have sidestepped labour rights through casualisation and subcontracting, which let the actual employer avoid legal obligations. COSATU demands amendments to the LRA that will compel the workplace employer to negotiate with subcontracted workers on any measures that could cause them to lose jobs, and ensure that temporary workers have the same rights and benefits as permanent workers. We demand that the principle of equal pay for work of equal value be enshrined in the law as part of a deliberate strategy to end the exploitation of casualised workers. d. We demand an end to racism and apartheid style practices at the workplace. We want stronger actions for human resource development strategies and training as well as full compliance with the provisions of the Employment Equity law to reverse racial practices of the apartheid era. We demand stronger actions to promote blacks, women and people living with disabilities.

__Signed on behalf of COSATU__

__Signed on behalf of the employers__

__Signed on behalf of the government__

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

P.O.Box 1019 Johannesburg, 2000 South Africa

Tel: +27 11 339-4911/24 Fax: +27 11 339-5080/6940 E-Mail: patrick@cosatu.org.za**