Statement by the Central Executive Committee of the Congress of South African Trade Unions, November 25 2011
The Congress of South African Trade Unions held a scheduled meeting of its Central Executive Committee from 21-23 November 2011, with the national office bearers and affiliate and provincial leaders in attendance. Among the many issued discussed were the following:
Political backdrop
The CEC met against a backdrop of a world in crisis, with glaring manifestations of the inherent chronic failures in the system of capitalism internationally, which are happening in the heartland of capitalism - in the USA and all over Europe.
This reality is a warning that in South Africa we may be heading in the same direction. The question is whether when such events unfold our formations will be at the head, or will be reacting from the periphery or be dragged by the masses and follow from behind. This reality reminds all of us about our responsibility to continually confront and expose capitalism for what it is - a system that brought misery to our people!2.
COSATU's political role
This global and national crisis makes it more necessary than ever to maintain and deepen the unity and strength of the workers' movement. Without maximum unity COSATU will cease to be the hope of South Africans across class and colour divides; it cannot be the moral compass, a fearless spokesperson of the mostdowntrodden and a reliable friend and ally of the oppressed and exploited across the globe.
There was a thorough and frank debate on perceived differences within the federation and the ongoing challenges threatening our unity and our relationship with our alliance partners.
The meeting reaffirmed the unity of the federation, based on the following mandates from the June 2011 Central Committee:
- We need to defend the Polokwane progressive policy framework, and the Manifesto undertakings, and build on these as a basis to make further advances.
- In engaging with the ANC leadership on this political platform, we need to be constructive but critical, and refuse to allow political paralysis. We need to ensure that they help us to help them.
- The new tendency of tenderpreneurs represent a serious threat to the revolution, and must be isolated and exposed.
- We need to defend the ANC's leadership collective elected at Polokwane, against the new tendency which is attempting to destabilise it and put it on the back foot.
- It is premature to engage in succession debates, as this distracts us from the primary political tasks of taking forward our transformation mandate. We will encourage our members to assess the leadership of all Alliance formations, at the right time.
- We need to continue to engage from a working class perspective, unapologetically pursue our class struggle, and analyse our political challenges based on the material realities which confront us, rather than a narrow commitment to this or that grouping or leader.
Our assessment, in relation to these six mandates, paints a worrying picture of the political state of the Federation. We have sought to confront the difficult challenges, including the perceived dangers to the federation, some of which are not necessarily backed by strong evidence but are trends that if not confronted will destroy the federation altogether. This however shouldn't be overstated - the political centre of the Federation continues to be located in a progressive consensus in the traditions of the organisation.
However it would be a fatal error to understate the problems. They need to be confronted in the open, honest, and critical manner, which has kept the Federation strong over the years, or they will degenerate into a serious organisational crisis.
NPC presentation
Trevor Manuel, Minister in the Presidency and Chairperson of the National Planning Commission, the Deputy Chairperson of the NPC, Cyril Ramaphosa and a number of other Commissioners, gave a presentation on the National Development Plan - Vision for 2030. They focused on the six ‘drivers of change' - West to East tilt, interconnectivity, globalisation, climate change, technology and the resurgence of Africa. They emphasised the importance of adopting measurable targets.
The federation is studying the Plan and will produce a full, detailed response for discussion at the February 2012 CEC. Accordingly we agreed to engage the NPC in the near future and certainly before the six months period they have set. This will help address concerns some of which already expressed in public by some of our affiliated unions.
Collective bargaining and the unemployment challenge
The CEC discussed the SACTWU agreement, which provides for a different minimum wage for first-time workers and pressure by employers in other sectors for the introduction of similar provisions in bargaining agreements. We decided to postpone the finalization of this discussion. Our final response will be guided by the framework below:
1. COSATU remains committed to closing the apartheid wage gap, a decent minimum wage for all workers, and in particular addressing the crisis of youth unemployment.
2. COSATU is committed to finding creative solutions to these challenges, but does not believe that lowering workers wages, when most workers earn below R3000, i.e. below the household subsistence level, can be part of the solution.
3. No country in the world has succeeded in addressing these challenges through embarking on ‘a race to the bottom', which sees lower and lower wages as the solution to the challenge of rising unemployment and declining living standards.
4. In Brazil there has been a virtuous cycle of growing real wages, growing employment and declining inequality, driven by the rising real demand resulting from rising living standards and an appropriate industrial and macroeconomic strategy, to ensure the sustainability of this developmental cycle.
5. The crisis of unemployment in South Africa similarly requires sustainable solutions, not crisis management, or knee-jerk measures which deepen the problems. The CEC therefore agreed on the need for a multi-pronged strategy, a combination of macro-economic responses to promote industrial renewal and diversification, and a well resourced and focused industrial strategy. Collective bargaining agreements can help to advance this developmental agenda.
6. Social partners at Nedlac have agreed that youth unemployment is a crisis needing urgent attention. Consensus is emerging that a coherent response is required to address this challenge, and that measures such as the proposed youth wage subsidy cannot be a silver bullet to effectively address this challenge.
7. The CEC has therefore set up a team to address these multiple challenges and look at proposals to be placed before the February 2012 CEC and synchronised with discussions in Nedlac. The role of collective bargaining and government tax incentives will only be two of a wide range of policy interventions to be considered by the CEC in addressing these matters.
Labour law amendments
Nedlac is discussing a package of labour law amendments, in four bills - the Labour Relations Amendment Bill, the Basic Conditions of Employment Amendment Bill, the Employment Equity Amendment Bill and the Employment Services Bill.
A special CEC on 28 October 2011 on labour broking and other issues that required mandating agreed that while the government's legislative proposals did not constitute a ban on labour broking they were also not the weak form of regulation originally called for by business. Nevertheless the special CEC decided to maintain the call for a ban on labour brokers.
The planned mass action for 5 October 2011 had to be postponed after a meeting of the Nedlac Section 77 Standing Committee took a majority decision that the Notice submitted by COSATU was premature as matters were still being considered. There was a risk that a court could use the Nedlac Section 77 Standing Committee's majority decision to rule in favour of the employers.
COSATU remains utterly opposed to the practice of labour brokering, a form of human trafficking which has condemned thousands of workers to insecure jobs with poverty pay, no benefits and no job security, and will continue with the mass action at the end of February. We shall not rest until labour brokering has been banned. The CEC reiterated the policy guide from the 5th Central Committee that if this demand is not realised it must be backed by a series of general strikes. We have been asked to develop rolling mass action in all provinces at the beginning of 2012 to back this demand.
Violence during strikes
During negotiations on the labour market review, government has raised from time to time the issue of violence during strikes. We asked them on numerous occasions to put their proposals in writing. COSATU agrees that violence and intimidation has no place in strikes and society in general. The CEC instructed all its affiliates and provincial structures to develop education programmes and campaigns to educate members on their responsibility to keep all strikes and demonstrations violence free.
Our view is that violence is a social problem, extending beyond the labour market, which will not be solved by a quick knee-jerk reaction.
At a meeting in November government eventually tabled proposals which they believe will regulate conduct during strikes. Regrettably these proposals instead of addressing a common concern i.e. violence launches the most serious attacks on our right to strike since the inception of the LRA in 1995 or even before.
They are proposing:
1. That the period for conciliation for an issue which might give rise to a strike or lock-out should be extended to 60 days. After 30 days picketing rules can be negotiated and a ballot may be held. Government's thinking is based on the hope that a strike can be conciliated away in the extended time. Our view is that more anger will build up as workers see their right to strike being subject to a 60-day conciliation period, particularly since most employers will not use this period to settle matters and the demands of the workers would not be resolved.
2. A return to compulsory ballots prior to calling a strike. The ballot would have to be verified by the CCMA, Bargaining Council or an accredited agency.
3. Changes to the right to picket. In an attempt to get buy-in from labour they are proposing that picketing rules would be binding on third parties who control access to the employer's premises in exchange for a multitude of changes that will work to the detriment of those on strike.
4. Picketing to be limited to the members of the union calling the strike and no strike unless picketing rules have been agreed or determined. These rules must cover all conduct during strikes and not just the actual picket.
5. Unions will be told what steps they must take in the case of illegal conduct during a strike. Breaches of the picketing rules can be taken to the Labour Court and may have the right to picket withdrawn and may then be held liable for any damage caused by the breach. There will be special rules for sector strikes and a joint trade union/employer committee established. The role of this committee is not spelt out.
All these proposals are a direct attack on trade unions. The link between the withdrawal of the right to picket and union liability is particularly worrying. They echo the DA's private member's Bill and the recent call from SALGA. It in effect makes the union responsible for any unlawful acts by anyone on a picket line.
The CEC agreed to reject these proposals, continue to demand an end to scab labour and an extension of our right to picket, and to prepare for battle over this threat to basic union rights.
Labour law amendments on essential services
The determination and regulation of essential services remains a sore point for affected workers in the public service, local government and relevant sectors such as energy. Currently in many sectors designations of what constitutes an essential service are excessively broad, and include services which if interrupted would not result in injury, loss of life or other serious imminent emergency. The resultant restriction this places on the right to strike favours employers, who are generally unwilling to negotiate and agree on minimum service agreements.
Government tabled its written proposals only a week ago, which should be viewed within the context of other problematic proposals aimed at repressing the right to strike. These include:
6. Deeming a dismissal to be automatically unfair, should an essential service worker who is subject to minimum service agreement go on strike.
7. Extremely problematic proposals on the composition of the Essentials Services Commission (ESC) that load it in favour of employers. The current ESC is composed of a chair, and a representative each from organised labour and business.
8. Government now proposes that it be composed of representatives of labour, business and government, together with a so-called independent chair. Any decision of the ESC would be dealt with by all four individuals regardless of whether it affects the public or private sector. This means having two employer representatives participating at all times. The chair would have a casting vote if decision by majority is not possible.
9. New functions of the ESC would include compelling parties (through CCMA or bargaining council mediation) to conclude a minimum service agreement, as well as imposing a minimum service agreement if parties are cannot agree by a certain time or if it wishes to impose an alternate one. It is this latter power to impose an agreement that we have concerns with, especially in light of the proposals to load the ESC composition in favour of employers.
10. Expansion of the definition of essential services to include "public officials exercising authority in the name of the state". The wording of the definition has yet to be provided. However, examples by government motivating this proposal include immigration officials at the airport, customs officials and SARS employees. Clearly this far beyond services that would result in injury or loss to life should that service be interrupted.
11. Where the ESC imposes a minimum service agreement, Government has indicated that it wants it to be valid indefinitely. Whereas unions and workers believe that there should be regular reviews of essential service designations and minimum service agreements - currently we are forced to continue under problematic designations, which over time has been revealed to have been incorrectly designated.
12. New proposals to allow the ESC to undertake an expedited process to designate an essential service - it can make a preliminary determination in response to which it can ask for comments from interested persons before making a final determination. Whereas currently it must FIRST conduct an investigation and solicit comments before making a determination.
Lawyers at the CCMA
The CEC agreed to oppose an application by the Law Society to challenge the constitutionality of the exclusion of lawyers from appearing in the CCMA in misconduct and incapacity disputes.
The implications of this would be huge. The LRA and its amendments were designed to give easy access to shop stewards to represent members in the CCMA. Allowing the employers to bring lawyers will simply complicate matters and eventually will be a huge financial burden on workers and their unions, who will not be able to afford the legal fees. The end result will be that the justice is denied to thousands of workers who currently can walk with to the CCMA to demand recourse.
Protection of State Information Bill
The CEC noted with concern that the Protection of State Information Bill has been passed by the National Assembly. The federation wrote to the ANC three weeks ago expressing its concerns with the bill but has received no reply yet. It was agreed to call for urgent bilateral meetings with the ANC and the SACP, which is supporting the bill.
COSATU is unequivocally opposed to acts of espionage or activities that are hostile to the state. However, we are concerned that relevant provisions in the Bill are capable of such broad interpretation that it would have the effect of imposing criminal responsibility on whistle-blowers who disclose information in the public interest.
Through our engagement with the leadership of the ANC and the Ad Hoc Committee, the Bill finally adopted by the Ad Hoc Committee has undergone numerous drafting changes, which some Committee members argue have addressed civil society concerns, but we are firmly of the view that some of our original fundamental concerns remain largely unaddressed:
The scope of the revised Bill remains excessively wide, with the potential for just about any organ of state or National Key Point (including private institutions) to be included on the basis of a Ministerial discretion.
Serious definitional and interpretation problems remain Bill, some of which include:
i) The varying degrees of ‘harm' arising from possession or disclosure of state information which determines the stringency of the security classification and associated restrictions and criminal penalties. The potential for subjective interpretation in the absence of proper guidelines creates ample space for abuse of the process of classification.
ii) The definition of ‘national security' is still overly broad and moreover includes problematic factors, such as the "exposure of economic, scientific or technological secrets" and acts that would have diplomatic implications for "carrying out ...responsibilities to any foreign countries and international obligations". Public interest must necessarily overlap with a correctly construed definition of "national interest, and in many instances should even override the protections for diplomatic relations or against economic harm especially where it is necessary to expose serious irregularities or corruption.
h. It contains numerous provisions that undermine rights of access to information. Quite problematically we note that its provisions state that it will trump the provisions of any other Act of Parliament that contradicts it. This would suppress rights of access to information whether these arise from the Promotion of Access to Information Act or even the Labour Relations Act.
i. It criminalises possession of classified information by an unauthorised person and states that any person who "conspires with .aids, abets, induces or ...counsels another person to commit an offence is guilty of an offence".
This would have the consequence of criminalising the obligations that trade union officials and advice offices have to assist whistle blowers with advice or blow the whistle on their behalf where a person wishes to remain anonymous.
The CEC remains convinced that there is a need to introduce a public interest defence that would maintain a balance between the restrictions legitimately placed on state information against disclosures and media publication of such information in the public interest.
Some members of the Ad Hoc Committee had promised that the space has not been closed and that the National Council of Provinces will open the space and make further amendments to the Bill.
The meeting agreed that if we cannot persuade the government to withdraw the bill we will launch an application to the Constitutional Court as we believe that these proposals are unconstitutional.
Corruption Watch
Corruption is one of the biggest threats to our revolution and efforts to build a better life for all. COSATU will continue to use every ounce of its energy to help root out the scourge of corruption in our country. We call on all citizens to stand shoulder-to-shoulder with one another and with all other organisations battling against corruption, which can only be defeated through collective action of all citizens.
We are happy that the Alliance is beginning to close perceived gaps on these matter and is working hard to develop a programme that will mobilise our people against corruption in line with the adopted its Programme, "Alliance Programme of Action for fundamental transformation of society".
COSATU will be holding a follow-up march in Polokwane on 13 December 2011 which will be led by the COSATU General Secretary as part of our efforts to demand an end to the scourge of corruption.
The CEC was addressed by Dave Lewis, who has been appointed as Director of Corruption Watch, the corruption-fighting body set up by COSATU. We hope to launch the organisation on 26 January 2012.
It will investigate allegations of corruption and, when there is sufficient evidence refer cases to the relevant law-enforcement agencies. It will have to be strategic and selective and focus on the types of corruption most often encountered by workers and the poor, e.g. bribes solicited by traffic police and home affairs officers.
An interactive website is being set up for people to report anonymously but which will show the kind of corruption which is being reported and identify hot-spots. It will cover both the public and private sectors, particularly corrupt relationships between the two.
Gauteng e-tolls
Since the last CEC there have been two Section 77 meetings at Nedlac. At the first meeting we tabled our demands, including rescinding the implementation of the Gauteng tolls (GFIP) until the matter had been engaged at Nedlac.
Government agreed to initiate discussions on public transport at Nedlac and also decided that the implementation of further phases of GFIP should be reassessed. There are also reports that a task force of Department of Transport and Treasury people has been established to consider alternative funding models for the R20bn debt incurred in the construction of the first phase of GFIP.
COSATU has sought a meeting with the Minister of Transport to explain why the GFIP is still being implemented but he has not responded.
The tolls are to go ahead anyway, despite the public hearings which have turned out to have been a waste of time, which has made COSATU members very angry.
The CEC therefore agreed to proceed with mass action, together with civil society organisations, at the end of February. Accordingly we shall issue a final notice in Nedlac that will give us a right to a protected strike at the end of February 2012.
In the meantime we are urging people not to buy e-tags and, if the tolls have not been scrapped, will be encouraging motorists to drive through the tolls without paying. In this act of civil disobedience we shall not present ourselves to the courts and will not pay fines imposed for merely using public roads that should remain a public good.
Meanwhile we shall investigate legal action on the basis that continuing to impose tolls in Gauteng while halting their extension to other provinces constitutes discrimination.
12. NHI Green Paper
The CEC endorsed COSATU's welcome of the government's Green Paper on National Health Insurance, which unambiguously reaffirms every citizen's right to access to health care.
We have had a series of meeting with the Minister of Health where he briefed us about the challenges on the implementation of the NHI. The private sector has access to funding and resources far in excess of those of communities and civil society, which gives them a strong voice. The NHI will not see the light of day without consistent campaigning for its implementation by unions putting pressure and raising issues at a public level.
The CEC agreed to the following:
1. The National Health Insurance Fund must be a single payer and must be publicly administered. There must be no outsourcing of administration.
2. There must be no public private partnerships in the delivery of health care in the public sector.
3. Tax subsidies that are meant to encourage employees to enrol in medical schemes must be abolished.
4. The NHI must be funded via general revenue, payroll linked progressive contribution tax and contribution by employers. No additional levies must be made through VAT to fund the NHI.
5. There should be no further investigation of a multi payer system as it is not going to lead to universal access to health insurance.
6. The creation of the NHI and the broader transformation of the health system in terms of the 10-point plan of government must be prioritised as one of the 5 priorities of the manifesto.
7. Community Health Workers must be formally integrated into posts within the public health system. Their role, training and regulation should be formalised and standardised.
8. Outsourcing and PPPs within the public health care system must be reversed.
9. The benefit package must be clearly outlined in line with the original draft from the ANC NEC health and education subcommittee as adopted at the 2010 NGC.
10. All medical schemes must be dissolved into the NHI Fund.
11. The government must expedite the process of establishing a state-owned pharmaceutical company.
12. Government must implement the recently-launched Human Resources Strategy which must not be affected by the attempts by Treasury to reduce the public service wage bill.
13. The use of labour brokers, particularly as it relates to moonlighting of staff, should be banned.
NGP follow-up
As part of the agreement COSATU entered into with the Economic Development Department and government generally, following the publication of the New Growth Path, we have signed the following accords:
1. Basic Education Accord
2. National Skills Accord
3. Local Procurement Accord
4. Green Economy Accord
The Basic Education Accord was signed on 13th July 2011 by the four Nedlac constituencies. It is premised on the realisation by every stakeholder that our education system is not producing expected results from Grade 1 to 12, which will in the long run have a negative impact on the economic future of the country.
The stakeholders have committed themselves, among others, to:
1. Work together to change the mindset among teachers, learners and parents to rebuild dysfunctional parts of the basic education system and ensure quality education delivery, particularly in poorly-performing schools;
2. Endorse a campaign to adopt poorly-performing schools and implement whole school development programme interventions, with individual businesses working collectively and trade unions/community-based organisations assisting such schools to develop proper governance, high standards of teaching, basic school-level discipline and an adequate supply of essentials (including school textbooks and workbooks).
Issued by COSATU, November 24 2011
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