COSATU rejects Eskom’s privatisation
15 May 2015
The Congress of South African Trade Unions is perturbed by reports on ‘possibilities of selling part of the Electricity Supply Commission [Eskom] equities’, with the Public Investment Corporation [PIC] gearing to buying a stake’.
The historical evolution of privatisation has many sad experiences in the eyes of the working class which resulted in massive job losses over many years.
COSATU reiterates its view that a cohesive economic growth in the country resides in industrialization to ensure that the entire social surplus generated will be ploughed to ensure that poverty, unemployment and inequalities are totally eradicated.
The State must take direct responsibility towards strategic nationalization of key sectors and productive resources, and the move to ‘sell part’ of Eskom is contrary to such an action.
Energy is but one of the critical components to have a economic policy which is premised on meeting the basic needs of the citizenry, lowering the costs of production of basic goods and services and further increasing domestic capacity to produce goods for exporting.
Concepts such as rationalization, outsourcing, down-sizing, right-sizing and ‘parts of Eskom sold’ will never be revolutionary approach to solve the challenges the electricity utility is facing.
Crystallization of a clear macro-economic policy should never reside in a view of privatizing state-owned assets.
In Brazil, the working class are on the streets fighting against outsourcing.
Privatization is a Neo-liberal concept for un-sustainable economic growth which must be regarded as responsible for many precarious conditions faced by the working class across the globe today.
The 1980’s Margaret Thatcher’s privatization of Britain Telecom and Chirac’s privatization of large banks in France, are still fresh in our minds.
COSATU views all these policy proposals as a pure attempt to privatize Eskom.
COSATU joins the National Union of Mineworkers and the South African Communist Party to reject privatisation of Eskom.
The coming COSATU Central Executive Committee on the 25th May 2015 will, amongst others, concretise campaigns to reject the privatisation of Eskom, the increasing of electricity tariffs which is a burden for the working class.
And also reject narrow and minimalist approach by NERSA in calling for public hearings on tariffs which are ‘endorsed’ by a tiny minority at the expense of the majority.
COSATU reiterates that privatization of Eskom is a wrong step to be taken and nationalization of strategic sectors of the economy such as energy is the only route to a sustainable growth path.
Electricity supply in South Africa must be a national responsibility of the state. A significant part of the population is still without electricity.
Statement issued by Ntai Norman Mampane, COSATU Acting National Spokesperson, May 15 2015
