Sidumo Dlamini`s Address to Nedlac Summit
5 September 2014
Deputy President, Comrade Cyril Ramaphosa
Minister of Labour, Comrade Mildred Oliphant
Nedlac Executive Director, Comrade Alistair Smith
Convenors of the four Nedlac constituencies
Comrades and friends
On behalf of organised labour I must begin by congratulating Nedlac on 19 years of invaluable work to take forward and consolidate our 20-year-old democracy, by enabling us to manage potentially divisive issues in a constructive and peaceful manner.
There are some who are very critical of this organisation, but we must always bear in mind where we would be today if Nedlac, together with the CCMA, collective bargaining chambers and other conflict-resolving institutions, had never been formed, and we lived in the kind of neoliberal free-for-all, dog-eat-dog environment that a small minority of our richest citizens seem to desire.
Of course that does not mean that we do not still face huge challenges, the biggest as always being the triple crisis of unemployment, poverty and inequality. They are the underlying reason for this year’s two big strikes, numerous smaller disputes and mushrooming community protests.
Unemployment is still rising; in the second quarter of 2014 it was 35.6% by the more accurate expanded definition which excludes those who have given up looking for work. In manufacturing industry we are continuing to see a job-loss bloodbath.
Such levels of joblessness inevitably lead to increasing poverty, not only among the unemployed themselves, but among the thousands of workers who have to share their meagre earnings with as many as ten dependent unemployed family members.
Meanwhile the bosses are getting richer and richer. As so often in recent years, the gap between the living standards of the workers and their employers is widest in the retail sector.
Shoprite has the highest income gap; the average total income of its CEOs is 725 times as high as the average wages of employees, and Christo Wiese, its chairman, executive director and largest single shareholder is the 3rd richest South African, and 506th richest person in the world, with a net worth of R34.67 billion.
The long-term solution to this triple crisis has to be what is hinted at in today’s theme – “working together for inclusive growth”. We do not want growth which is only measured in higher profits and share values, in the hope that a little of this will ‘trickle down’ to the poor, which it never does.
We need an economy based on manufacturing industry and growth that creates lots more decent jobs and a fundamental redistribution of wealth through a national minimum wage, comprehensive social security to abolish poverty, and an end to our iniquitous two-tier public services in education, healthcare and public transport.
We cannot tolerate a society in which not only is the distribution of the country’s wealth so skewed in favour of a wealthy minority, but that minority can buy better education, healthcare and now even access to TV Channels on DSTV which the majority cannot afford. We must reject the obnoxious ‘user-pays’ principle for our public services.
The blueprint for such a transformation is already there, in the ANC Conference policy for the ‘2nd Phase of the Transition’ and in documents like the Industrial Policy Action Plan, the National Infrastructure Plan and at least parts of the government’s New Growth Path.
The problem is the slow pace of implementation and the foot-dragging by wealthy investors to release the estimated R1.2 trillion in social surplus which they are refusing to invest in the economy.
Another reason is the conservative neoliberal economic policies in the National Development Plan and those of the Treasury and Reserve Bank, which are constantly putting the brakes on the expansionist, developmental policies promised in the ANC Manifesto and successive State of the Nation Speeches.
These policies include high interest rates, which drive small companies out of business and prevent the creation of new ones, tariff reductions to open up our markets to heavily tariff-protected imports from other countries, and policies such as the Employment Tax Incentive Act (ETIA), which is falsely presented as a solution to youth unemployment, when in reality it is nothing of the kind.
It has turned out to be nothing more than a hand-out mainly to labour brokers, who, instead of being banned as they should have been, are now being subsidised by the tax payers to enable them to continue exploiting young workers, giving them no training, usually no benefits and absolutely no job security.
We were incensed that this misguided piece of legislation was not debated in Nedlac, despite being clearly within the parameters of economic development and labour issues which we are obliged by law to discuss. We strongly suspect that the Treasury knew they would never reach agreement on this law within Nedlac.
We hope that we will not set a precedent for other government policies in the pipeline, including three important issues that we absolutely must discuss in Nedlac, and on which we demand a moratorium until this happens.
First is the reform of retirement funds. While we can all unite to refute the false rumours about pensions being ‘nationalised’, we cannot allow any changes in such a crucial area for workers without the fullest possible debate.
Any changes have to take account of our context – a developing country with massive levels of often very long-term unemployment, during which cashing in a provident fund may be the only means of survival. There must be a moratorium on the implementation of these changes until they have been properly discussed.
Secondly the immigration laws have already been changed without any proper consultation within Nedlac. While much media attention has focussed on the threat to tourism, it is vital that we also examine the impact of any changes on the security of the thousands of migrant workers, who have played such a big role in our economy for over a century and still do so today. We must place a moratorium on these changes until Nedlac has thoroughly discussed them.
Thirdly is the land question. Here we appreciate that the government has not jumped the gun and is, as we speak, opening up a debate at the Land Summit in Boksburg. We have to ask however how such an important event came to be arranged so that it clashes with our meeting here today.
We will not accept that such a Land Summit can replace the role of Nedlac to discuss such a key component of the struggle to transform our society and redress the injustices imposed on us by the 1913 Land Act and apartheid laws which robbed the African people of their land.
Another area where new legislation is being talked about is further changes in our labour laws. The recently passed labour law amendment acts were a good example of how Nedlac can play a positive role by helping to avoid potentially damaging unintended consequences in legislation and lead to better drafting.
While labour failed to win on the banning of labour brokers, we appreciate the many improvements in various acts, which, if effectively implemented, should greatly improve our labour relations environment, by making it easier for workers to get justice and to punish those employers who refuse to comply with the law.
Labour is however alarmed at suggestions from some quarters that we need further new laws to ‘deal with’ long strikes. Let them be warned that the workers of South Africa will never, never agree to reversing the gains we have enshrined into laws to enforce basic worker and human rights.
The idea of ‘compulsory arbitration’ for example, which is banned under ILO Conventions Number 87 and 98, and which would effectively be a law to force workers back to work, would be a blatant contravention of Clause 23 of the Bill of Rights which protects the right to strike, and would be unenforceable in a democracy.
Finally let us keep reminding ourselves of the accords, signed by all the Nedlac constituencies, which can help us to address some of the major challenges:
• The Basic Education Accord, premised on the realisation that our education system is not producing expected results from Grade 1 to 12, which will have a negative impact on job creation and the economic future of the country.
• The National Skills Accord, aimed at expanding and improving training.
• The Local Procurement Accord, to promote Proudly South goods and build our manufacturing base.
• The Green Economy Accord, which has a rich potential to create more jobs and create a healthier world.
• The Youth Employment Accord, which, unlike the ETIA, is full of genuine ways to create jobs for young people, many of which will also enable them to improve the lives of communities, clean up our environment and improve their education and skills.
Let us hope that as we approach the 21st year of our democracy we can finally turn the corner, start to turn words into deeds, see substantial numbers of decent new jobs coming on stream, a steady reduction in poverty and a radical redistribution of wealth so make us a more equal society, in which everyone feels that they are social partners and not oppressed subjects.
Patrick Craven (National Spokesperson)
Congress of South African Trade Unions
110 Jorissen Cnr Simmonds Streets
Braamfontein
2017
P.O.Box 1019
Johannesburg
2000
South Africa
Tel: +27 11 339-4911 Direct 010 219-1339
Fax: +27 11 339-6940
Mobile: +27 82 821 7456
E-Mail: patrick@cosatu.org.za
- See more at: http://www.cosatu.org.za/show.php?ID=9434#sthash.P7mHf6xt.dpuf
 |
| COSATU President Sidumo Dlamini addresses NEDLAC Summit. |
Deputy President, Comrade Cyril Ramaphosa
Minister of Labour, Comrade Mildred Oliphant
Nedlac Executive Director, Comrade Alistair Smith
Convenors of the four Nedlac constituencies
Comrades and friends
On behalf of organised labour I must begin by congratulating Nedlac on 19 years of invaluable work to take forward and consolidate our 20-year-old democracy, by enabling us to manage potentially divisive issues in a constructive and peaceful manner.
There are some who are very critical of this organisation, but we must always bear in mind where we would be today if Nedlac, together with the CCMA, collective bargaining chambers and other conflict-resolving institutions, had never been formed, and we lived in the kind of neoliberal free-for-all, dog-eat-dog environment that a small minority of our richest citizens seem to desire.
Of course that does not mean that we do not still face huge challenges, the biggest as always being the triple crisis of unemployment, poverty and inequality. They are the underlying reason for this year’s two big strikes, numerous smaller disputes and mushrooming community protests.
Unemployment is still rising; in the second quarter of 2014 it was 35.6% by the more accurate expanded definition which excludes those who have given up looking for work. In manufacturing industry we are continuing to see a job-loss bloodbath.
Such levels of joblessness inevitably lead to increasing poverty, not only among the unemployed themselves, but among the thousands of workers who have to share their meagre earnings with as many as ten dependent unemployed family members.
Meanwhile the bosses are getting richer and richer. As so often in recent years, the gap between the living standards of the workers and their employers is widest in the retail sector.
Shoprite has the highest income gap; the average total income of its CEOs is 725 times as high as the average wages of employees, and Christo Wiese, its chairman, executive director and largest single shareholder is the 3rd richest South African, and 506th richest person in the world, with a net worth of R34.67 billion.
The long-term solution to this triple crisis has to be what is hinted at in today’s theme – “working together for inclusive growth”. We do not want growth which is only measured in higher profits and share values, in the hope that a little of this will ‘trickle down’ to the poor, which it never does.
We need an economy based on manufacturing industry and growth that creates lots more decent jobs and a fundamental redistribution of wealth through a national minimum wage, comprehensive social security to abolish poverty, and an end to our iniquitous two-tier public services in education, healthcare and public transport.
We cannot tolerate a society in which not only is the distribution of the country’s wealth so skewed in favour of a wealthy minority, but that minority can buy better education, healthcare and now even access to TV Channels on DSTV which the majority cannot afford. We must reject the obnoxious ‘user-pays’ principle for our public services.
The blueprint for such a transformation is already there, in the ANC Conference policy for the ‘2nd Phase of the Transition’ and in documents like the Industrial Policy Action Plan, the National Infrastructure Plan and at least parts of the government’s New Growth Path.
The problem is the slow pace of implementation and the foot-dragging by wealthy investors to release the estimated R1.2 trillion in social surplus which they are refusing to invest in the economy.
Another reason is the conservative neoliberal economic policies in the National Development Plan and those of the Treasury and Reserve Bank, which are constantly putting the brakes on the expansionist, developmental policies promised in the ANC Manifesto and successive State of the Nation Speeches.
These policies include high interest rates, which drive small companies out of business and prevent the creation of new ones, tariff reductions to open up our markets to heavily tariff-protected imports from other countries, and policies such as the Employment Tax Incentive Act (ETIA), which is falsely presented as a solution to youth unemployment, when in reality it is nothing of the kind.
It has turned out to be nothing more than a hand-out mainly to labour brokers, who, instead of being banned as they should have been, are now being subsidised by the tax payers to enable them to continue exploiting young workers, giving them no training, usually no benefits and absolutely no job security.
We were incensed that this misguided piece of legislation was not debated in Nedlac, despite being clearly within the parameters of economic development and labour issues which we are obliged by law to discuss. We strongly suspect that the Treasury knew they would never reach agreement on this law within Nedlac.
We hope that we will not set a precedent for other government policies in the pipeline, including three important issues that we absolutely must discuss in Nedlac, and on which we demand a moratorium until this happens.
First is the reform of retirement funds. While we can all unite to refute the false rumours about pensions being ‘nationalised’, we cannot allow any changes in such a crucial area for workers without the fullest possible debate.
Any changes have to take account of our context – a developing country with massive levels of often very long-term unemployment, during which cashing in a provident fund may be the only means of survival. There must be a moratorium on the implementation of these changes until they have been properly discussed.
Secondly the immigration laws have already been changed without any proper consultation within Nedlac. While much media attention has focussed on the threat to tourism, it is vital that we also examine the impact of any changes on the security of the thousands of migrant workers, who have played such a big role in our economy for over a century and still do so today. We must place a moratorium on these changes until Nedlac has thoroughly discussed them.
Thirdly is the land question. Here we appreciate that the government has not jumped the gun and is, as we speak, opening up a debate at the Land Summit in Boksburg. We have to ask however how such an important event came to be arranged so that it clashes with our meeting here today.
We will not accept that such a Land Summit can replace the role of Nedlac to discuss such a key component of the struggle to transform our society and redress the injustices imposed on us by the 1913 Land Act and apartheid laws which robbed the African people of their land.
Another area where new legislation is being talked about is further changes in our labour laws. The recently passed labour law amendment acts were a good example of how Nedlac can play a positive role by helping to avoid potentially damaging unintended consequences in legislation and lead to better drafting.
While labour failed to win on the banning of labour brokers, we appreciate the many improvements in various acts, which, if effectively implemented, should greatly improve our labour relations environment, by making it easier for workers to get justice and to punish those employers who refuse to comply with the law.
Labour is however alarmed at suggestions from some quarters that we need further new laws to ‘deal with’ long strikes. Let them be warned that the workers of South Africa will never, never agree to reversing the gains we have enshrined into laws to enforce basic worker and human rights.
The idea of ‘compulsory arbitration’ for example, which is banned under ILO Conventions Number 87 and 98, and which would effectively be a law to force workers back to work, would be a blatant contravention of Clause 23 of the Bill of Rights which protects the right to strike, and would be unenforceable in a democracy.
Finally let us keep reminding ourselves of the accords, signed by all the Nedlac constituencies, which can help us to address some of the major challenges:
• The Basic Education Accord, premised on the realisation that our education system is not producing expected results from Grade 1 to 12, which will have a negative impact on job creation and the economic future of the country.
• The National Skills Accord, aimed at expanding and improving training.
• The Local Procurement Accord, to promote Proudly South goods and build our manufacturing base.
• The Green Economy Accord, which has a rich potential to create more jobs and create a healthier world.
• The Youth Employment Accord, which, unlike the ETIA, is full of genuine ways to create jobs for young people, many of which will also enable them to improve the lives of communities, clean up our environment and improve their education and skills.
Let us hope that as we approach the 21st year of our democracy we can finally turn the corner, start to turn words into deeds, see substantial numbers of decent new jobs coming on stream, a steady reduction in poverty and a radical redistribution of wealth so make us a more equal society, in which everyone feels that they are social partners and not oppressed subjects.
Patrick Craven (National Spokesperson)
Congress of South African Trade Unions
110 Jorissen Cnr Simmonds Streets
Braamfontein
2017
P.O.Box 1019
Johannesburg
2000
South Africa
Tel: +27 11 339-4911 Direct 010 219-1339
Fax: +27 11 339-6940
Mobile: +27 82 821 7456
E-Mail: patrick@cosatu.org.za
- See more at: http://www.cosatu.org.za/show.php?ID=9434#sthash.P7mHf6xt.dpuf
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