The Cape Chamber of Commerce responds to Cosatu

The Cape Chamber is disappointed by Cosatu's attack on it in a press release issued 6 February 2013 and would like to correct the organisation's allegations.

Firstly, Michael Bagraim is a past president of the Chamber and was quoted in all media coverage speaking as a labour expert and not the Chair of the organisation (a designation which does not exist), unless he was speaking in his personal capacity on behalf of his law firm.

Secondly, the Chamber is a non-partisan organisation which does not support any political party - a stance which is enshrined in its constitution. The Chamber leadership speaks on behalf of its members as it sees fit, based on the needs of business, without fear, favour or prejudice.

Thirdly, many of our members, both black and white, were affected by the unrest, both directly on farms and exporters of produce, and indirectly through interrupted transport and manufacture in the region. The notion that we should apologise to our black members is moot, since we had their full support to advocate for a swift and meaningful settlement to protect their businesses and the livelihoods of their employees.

Similarly, additional protests in the retail sector will have further negative effects on business, but more insidiously on our consumers - particularly in our most vulnerable communities. The current President, Fred Jacobs and Executive Director, Viola Manuel, were also extensively quoted on their calls for a more pragmatic and realistic approach to the agricultural disputes. This has been at the heart of our comment around labour unrest in the country for more than a year now.

Pay is an input cost that has to be factored into operational expenses. This is an economic reality and is supported by all our labour laws. The increases which have been imposed come without proper analysis and due consideration to the sustainability of individual operations.

The Chamber has been advocating for a more empirical approach to wage negotiations. The fact that the current labour framework is not working can most clearly be demonstrated after the Chamber spoke to some farm owners in the affected regions.

The salary differential between an entry-level employee in agriculture, based on the new minimum wage, and what the farmers are earning is currently 1:13. Meanwhile, the differential between an entry-level public sector employee and a minister is 1:34. Yet the same organisational value exchange principle should hold in each organisation. South African wages have become increasingly skewed after many years of sectoral determination without the use of sound metrics and analysis.

It is not for nothing that Governor Gill Marcus has been questioning the sustainability of what she referred to as the wage-price spiral.

The Chamber will continue to advocate that business must be an integral part in finding a sustainable solution to the current labour framework obsolescence.

Finally, the Chamber would like to applaud Cosatu's call for it to assist in getting labour and AgriSA around the table. We are happy to announce that through the Chamber's African Commercial Dispute Settlement Centre, a team of mediators will help find a path towards more effective future negotiations between the organisations. This will of course require all parties leaving any and all calcified preconceptions at the door. 

Statement issued by Monique Johnstone, Public Relations and Online Marketing Co-ordinator, Cape Chamber of Commerce and Industry, February 7 2013

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