Tuesday, September 07, 2010

South African Public Sector Strike Suspended

South African Public Sector Strike Suspended

Labor actions continues in mining sector

By Abayomi Azikiwe
Editor, Pan-African News Wire

Leaders of the unions involved in the public sector strike that has crippled the educational and healthcare sectors in the Republic of South Africa, have called for the suspension of the work stoppage in order to discuss the government's latest offer. An estimated 1.3 million workers have been on strike since August 18 demanding a 8.6 percent pay increase and a R1000 montly housing allowance.

"Labor has decided to suspend the strike and this does not mean we have accepted the state offer," all 19 unions representing the state workers said in a joint statement. The strike has generated a widespread debate over the future of economic policy within South Africa which is governed by the ruling African National Congress(ANC).

In a statement issued by the Congress of South African Trade Unions (COSATU), the largest labor federation in the country, and the Independent Labor Caucus, it says that the government has succumbed to the demands by labor" in relationship to pay raises and other issues.

"This is a victory in the history of public service negotiations where the employer was forced to reopen negotiations," the COSATU-ILC statement read.

The ruling ANC issued a statement saying that "The African National Congress welcomes the suspension of the public sector strike by the unions. We believe this is a step in the right decision in ensuring stability and normality in our public sector offerings, particular around education and health services." (ANC Statement, September 6)

The strike has reportedly cost the government R1 billion per day and represented the largest public sector labor action since 2007. The ANC government has offered the unions a 7.5 percent increase and a R800 per month housing allowance.

The ANC took control of South Africa in 1994 when the first non-racial democratic elections were held inside the country ever since the formation of the racist settler colonial system dating back to 1652.

Although the ANC controls the government, the economy is still dominated by multi-national mining and manufacturing interests.

At present the unemployment rate has been estimated to be 25 percent. A decline in real wages is making it extremely difficult for workers and the poor to purchase food and other essential services.

In a recent speech by the Blade Nzimande, the Minister of Higher Education for the ANC government and the Secretary General of the South African Communist Party (SACP), he addressed the high rate of unemployment, especially among the youth.

"To have three [million] to seven million 18-24-year-olds sitting at home doing nothing is a ticking time bomb. The situation right now is worse than 15 June 1976, the eve of the Soweto riots. Feel it. It is here," Nzimande said.

Other Labor Actions Underway

The public sector strike in South Africa is indicative of the broader struggles being waged by labor throughout the country. The National Union of Mineworkers (NUM) went out on strike September 6 at Northam Platinum demanding a 15 percent pay increase.

NUM represents 8,000 workers out of the 8,600 member work force.

In August, the Automobile Manufacturers Employers Organization (AMEO) and the National Union of Metalworkers (NUMSA) accepted a 10 percent pay raise after an eight-day work stoppage.

Growing Relations with China

With the possible resolution of the public sector strike, the South African government can commit additional resources to addressing the economic crisis that has affected countries throughout the African continent and the world. More details have emerged in regard to the outcome of President Jacob Zuma's visit to the People's Republic of China during late August.

In an article published August 30 on the leadershiponline website in reference to China-South Africa relations, it states that "President Zuma’s three-day official visit to China with 13 members of his government and some 370 business and other civil leaders has seen the announcement of a comprehensive strategic partnership between the two countries and the signing of no less than 12 agreements between companies from both sides, ranging from memorandums of understanding to possibly develop power grids, the setup of a cement plant in South Africa, on mining and transport infrastructure." (leadershiponline.co.za)

In assessing the impact of the Zuma visit to China, the website notes that "It has taken South Africa one important step closer to adding the status of being the Africa representative on the informal Bric grouping of developing nations (Brazil, Russia, India and China) to that role with the G-8 and G-20 summits."(leadershiponline.co.za)

Economic relations between China and South Africa have accelerated in recent years. In 2009 China became South Africa's largest individual trading partner replacing the United States and being second only to the European Union.

As the impact of the capitlist economic crisis worsens, various states on the African continent and other underdeveloped regions will seek alternative relations with China and various Asian, African and Latin American states.

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