Press+Statement+on+the+State+of+COSATU,+NALEDI,+plus+download

NALEDI

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=Press Statement on the State of COSATU=

For full document download click on this link:

 * [[file:State of COSATU Sep 2006, NALEDI.doc]]**

The paper focuses on the state of COSATU using documentary evidence and statistics from COSATU and affiliates, as well as other surveys and research by labour analysts and Statistics South Africa. The purpose of the research is to analyse the state of COSATU ahead of its Congress and to identify key issues for further research to be presented to the COSATU Central Committee in 2007.
 * Purpose and scope of the study**

This report has highlighted the fact that COSATU is a not in an organisational crisis, it remains fairly stable and coherent and able to articulate the interests of its members. It has recovered from membership losses, and while some unions have continued to lose members, others have grown significantly and have developed clear and effective recruitment strategies. The federation has also seen a period of increased strikes, effective mass mobilisations and worker militancy.
 * Summary of Key Findings**

There are, however, a number of pressures on the federation and affiliates that threaten the strength, representivity and stability of the movement, these include:


 * Weaknesses in organising those outside of permanent employment
 * Financial strain
 * Inadequate management of proactive organisational change
 * Inadequate representation of women and weaknesses in mainstreaming struggles for the transformation of gender relations

The key challenge for the trade union movement is to revive its efforts towards organisational renewal taking on board the need to integrate campaigns, recruitment and organising strategies and gender strategies within the organisational renewal process. There is a need to ensure that organisational renewal processes are participative and vibrant, unleashing the creativity and initiative of members and shop stewards rather than being driven from above.

A strong, well organised and democratic trade union movement is essential to the transformation of the country, and critical to the struggle for socialism. Insofar as COSATU and its affiliates are able to build on their efforts to organise, to reach out to new workers and deepen solidarity within their ranks, the federation will remain a central and powerful social force, capable of impacting profoundly on the trajectory of working class struggles and the future of our country.

An inequitable growth** Positive economic growth coexists with inequality, mass unemployment and poverty. The economy has generated new jobs but the quality of such employment has deteriorated. Permanent employment has virtually unchanged while casual and non-standard employment has increased.
 * Change in the Landscape and Impact on COSATU**
 * Democratisation and neo-liberalism
 * Dialogue and imposition
 * Protection and vulnerability
 * Solidarity and fragmentation

COSATU affiliates have largely not been successful in organising casual and externalised workers, apart from some modest progress in certain affiliates, for example, SACCAWU, SACTWU and SATAWU. Conscious and dedicated efforts to organise casualised workers are central to improving working conditions and bargaining power for both core and non-core workers. There is a danger of divisions between core workers and non-core workers created by differing pay and working conditions as well as job insecurity. This is where the role of trade unions is crucial in facilitating solidarity and struggles directed at the employer. Research conducted by SWOP and NALEDI identifies workers in three zones – core, non-core and extermalized.
 * Implications for union organising**

There is a need for renewed organising strategies focusing on more vulnerable workers and sectors. This will include designing adapting organising strategies and building alliances with other movements if COSATU is to recruit casual workers, build solidarity with the unemployed and workers in informal employment.

Social mobilisation and activism around a more redistributive stance by government have yielded partial victories in some areas suggesting that greater levels of mobilisation for redistribution by the state must be at the centre of COSATU strategy, however this needs to be significantly intensified, given that there have not been adequate changes to government policies on job creation, macro-economic policy and HIV/AIDS in particular.
 * COSATU Impact on Economic and Public Policy**

Three policy changes are suggestive that a more progressive economic policy is beginning to emerge; namely increases in government spending; modification of state asset restructuring policy and introduction of the policy of free basic services. More needs to be done to make a major dent on unemployment and poverty.

COSATU’s approach of combining collective bargaining with political struggle makes it unique. Its political struggle includes impacting on the democratisation and transformation process, as well as building a strong workers movement and working class organisation to struggle for socialism.
 * Political strategy**

Therefore, a key measure of how well the federation is doing in advancing transformative trade unionism is the extent to which COSATU’s struggles in the recent period have constituted anti-capitalist struggles, and the extent to which the federation is contributing towards deepened democracy that is reflected in outcomes that advance working class struggles.

The political strategy can move further in its boldness in challenging capitalism and pushing the boundaries of ‘what is possible’ in the current period.

Having said this, the report notes that COSATU has effectively combined workplace struggles and its political engagement. It however notes that struggles at the workplace are more defensive in nature.

The composition of COSATU is changing as a result of membership losses due to retrenchment of ‘low-skilled’ workers, combined with the growth of public sector unionisation. The federation represents growing numbers of workers with higher skill and education levels. Evidence shows that this has not led to a decline in militancy and political engagement.
 * Membership trends**

Membership in COSATU unions as a whole grew by 4% since the last Congress in 2003. This represents a reversal of membership losses between 2000-2003, during which time membership declined by 5%. This is on par with union membership growth in South Africa as a whole over the last 3 years, which was 4% according to LFS data. COSATU therefore declined by 1% between 2000 and 2006. Certain affiliates have seen significant growth in membership, for example SATAWU and POPCRU, followed by SACCAWU, SADNU, SADTU and SACTWU.

According to LFS data, general union membership increased by 10% from 2.8 million to 3 million, while union density[|[1]][1] remained around 36%. South Africa still has a relatively high union density compared to some developed countries. Still more than 64% of those employed in the formal sector are not unionised.

Despite the phenomenal growth in union membership, union density remains low in wholesale and retail at around 23%. Construction, retail and finance experienced positive employment growth. These are also the sectors that reported substantial levels of irregular employment, albeit to varying degrees. It can be deduced from this fact that unions have not succeeded to recruit workers in irregular forms of employment. In sectors where irregular workers constitute a majority, this poses a serious danger to unions organising in these sectors. The number of women in total employment has increased and as a result women now constitute 37% of formal employment. By some estimates, women represent more than 30% of COSATU’s membership but are highly under-represented in leadership structures. This masks the fact women membership is fairly concentrated in the formal sector, particularly the public sector.

Women constitute a vast majority of irregular workers and these are generally un-unionised. Therefore, despite a reasonable presence of women in COSATU’s overall membership; a substantial number of women, in vulnerable sectors are outside of unions.

Young people under the age of 35 are also fairly under-represented in unions constituting less than 15% according to the NALEDI survey (2006). This comes as no surprise since the bulk of young people under 35 years are unemployed.

The NALEDI Survey of Workers and Secretariat report make the following observations about the COSATU membership:


 * Just over 70 percent of COSATU members are African, 21 percent coloured or Asian, and 7 percent white. 80 percent of black trade union members are COSATU members, compared to about 40 percent of five white unionists. It is estimated that COSATU women members make up about 36% of membership in line with their proportion in the workforce. Workers aged less than 30 years old make up a third of non-members but only 15 percent of members in both COSATU and other unions.
 * A quarter of COSATU members counted as professionals – mostly teachers and nurses – while 21 percent were semi-skilled production workers and 13 percent were elementary workers. In contrast, skilled and clerical workers made up a larger share of members in other unions. Just 14 percent of COSATU members, and 10 percent of other union members, had only primary education; most of the rest had some secondary, and about a quarter had a tertiary degree.
 * Between 2000 and 2006, membership in COSATU as a whole declined by 1%. Membership grew by 4% between 2003 and 2006. This was a revival compared to the 2000 to 2003 period, when membership dropped 5%.
 * The overall stabilisation in membership masked substantial differences between affiliates and sectors. In particular, a few unions – POPCRU, NUMSA, SATAWU, SADNU and SACTWU – reported substantial growth over the past three years. In contrast, the remaining unions saw a fall in membership.
 * The changes in membership did little to change COSATU’s sectoral structure. In 2006, around a quarter of COSATU members were in manufacturing; mining accounted for a seventh, as did private services (including retail, communications and transport), and the public service, including local government, contributed two fifths.

The September Commission and the 2003 Congress Resolution underscored the necessity of organisational renewal or organisational development. Organisational renewal is understood as a multifaceted strategy of improving internal effectiveness, building organisational strength, improving service to members and recruitment of members. There is a need to invest attention and focus on efforts to renew the organisation in particular in terms of recruitment and organising strategies, gender, workplace strategies, building locals and increased focus on trade union education. There is a need for more research and analysis on the extent of worker control within affiliates and the federation and the impact of the current environment on this principle and practice.
 * Organisational Renewal**

=State of affiliates=


 * **//Membership://** Few unions in the sample reported membership growth, namely, POPCRU, NUMSA, SACCAWU and SATAWU. Union membership is concentrated in particular regions or establishment/firms. Women in SADTU constitute the majority and gender breakdown was not available from other unions. All union reported campaigns to recruit new members and it seems that gains do not make up for lost membership. Most unions have not met their particular targets set by COSATU. However, SATAWU, POPCRU, NUMSA, SADNU and SACCAWU all grew by more than 10% (SATAWU by over 60% and POPCRU by 40%).
 * **//Union finances://** all unions derive most of their income from member’s dues, i.e. between 70%-90% comes from subscriptions. An increasing number of unions also derive income from investment and commissions from service providers. In terms of financial health some unions have experience surpluses consistently during the period under review, whereas a number have experienced deficits. Salary and overhead costs represent by far the bulk of union expenditure followed by a distant second by activities. A number of union provide funeral schemes and this also represent a significant area of spending. Legal fees also constitute another area in which unions are spending although this is not analysed separately. No union reported a strike fund and this is a matter of concern in that unions do not allocate resources in advance. From a financial planning point of view this can introduce systemic risk in that a union that did not allocate resources for industrial action suddenly have to spend a lot of money.
 * **//Organisation Development strategies://** most unions report that they have embarked on an OD process. However this is still to filter into how unions conduct their business. Most OD processes have focused on changing structure and less on operations and service to members.
 * **//Collective bargaining://** unions in this sample have focused on wages and conditions of employment and have recorded important gains for their members. However it is a matter of concern that issues of equity, skills development and workplace restructuring have not received sufficient attention.

=Issued by NALEDI 14 September 2006=

2021 words

[|[1]][1] The proportion of the employed that belong to unions.