COSATU's expectations from the State of the Nation Address on 17 June 2014
The Congress of South African Trade Unions looks forward to President Jacob Zuma's State of the Nation Address, to be delivered on 17 June 2014.
It is the first SoNA since the ANC victory on 7 May 2014, a victory based on the ANC manifesto's promise of a radical transformation of the economy, which the ANC and its allies all agree has to be the centrepiece of government policy over the next five years.
The need for such a radical reconstruction of our economy was brought home by the latest Stats SA report on youth unemployment, released on 5 June 2014, which revealed that unemployment (on the narrow definition) among youth increased from 32.7% to 36.1% between 2008 and 2014, during which the youth unemployment rate has, on average, been 20% higher than for adults. Youth make up 52% to 64% of the working population, yet account for only 42% to 49% of those with jobs.
This shocking statistic is symptomatic of the wider economic crisis we face. Despite the advances we have made in the first 20 years of democracy - the scrapping of racist apartheid laws, a constitution which enshrines human rights, many progressive laws and social grants to protect the poorest South Africans - our economy has changed relatively little since 1994.
Economic growth is at a snail's pace, and continues to concentrate the benefits disproportionately in the hands of the few. Unemployment and poverty remain far too high. Over 7.4 million people are now unemployed, one of the highest - as a percentage of the population - in the world, and this figure is on the rise again, after a small drop last year. It means more and more families are being forced into poverty.
Inequality has got even worse, making us one of the most unequal societies on earth. A still mainly white and male elite own the biggest and most profitable companies, award themselves massive salaries, bonuses and perks, from wealth created by the workers who toil in often appalling conditions for poverty pay.
The outrageous levels of inequality in South Africa were exposed just two days before the election, when Amplats, one of the companies whose workers are demanding R12 500 a month, announced that its top 12 managers and executives have been awarded R25.3m as part of a bonus share scheme.
Even if they won the demand for R12 500 a month, it would take a worker 27 years to earn what Amplats CEO Chris Griffith received, and double that time if the calculation is made on the mine workers' current basic salary.
COSATU's 11th National Congress in 2012 was encouraged by new directions in government policy which were beginning to emerge, including steps towards a coherent beneficiation strategy, local procurement, the Industrial policy Action Plan (IPAP), an infrastructure programme aligned to an industrialisation and development strategy, and the start of a new approach to regional development.
Congress resolved however that far more urgency is needed, and this is what we expect to hear from the President on Tuesday. The delegates also agreed that these positive changes will only succeed if urgently pursued in the context of other necessary macro-economic changes which COSATU is demanding, including:
1. Abolish the apartheid wage structure: forward to a living wage!
The federation expects the President to report on progress in the promised investigation into the ‘modalities' of a national minimum wage and announce when it will become law and how it will be determined at what level the minimum will be set.
Too many workers and their families are living in poverty. It is totally unacceptable that half of all employed workers earn R3000 a month or less, meaning that the majority of South African workers can't afford the basic necessities of life. Combating low wages is at the heart of addressing poverty and inequality.
We reiterate our congress call for a speedy introduction of the National Minimum Wage, mandatory centralised collective bargaining, as well as ensuring social protection for the unemployed.
2. Radical socio-economic transformation: the people shall share in the country's wealth!
The core of this second radical phase of the transition of our National Democratic Revolution must be a fundamental economic shift, to transform the structure of our economy, and address the triple crisis of poverty, unemployment and inequality.
We have clearly not come close to achieving the demands in the Freedom Charter that: "The people shall share in the country`s wealth; The national wealth of our country, the heritage of South Africans, shall be restored to the people; The mineral wealth beneath the soil, the banks and monopoly industry shall be transferred to the ownership of the people as a whole; All other industry and trade shall be controlled to assist the wellbeing of the people".
A decisive state intervention in strategic sectors of the economy, including through strategic nationalisation and the use of various macro-economic and other levers at the states disposal
An overhaul of our macro-economic policy, with the Treasury urgently realigned and a new mandate to be given to the Reserve Bank, which must be nationalised
The National Planning Commission to be given a new mandate, and to realign the national plan, in line with the proposed radical economic shift. The National Development Plan's anti-worker economic and labour market chapters of the must be completely redrafted to bring them into line with government and the ANC's policy for a radical economic transformation.
Aspects of the New Growth Path to be realigned, in line with the macro-economic policy for radical economic transformation.
All state owned enterprises and state development finance institutions to be given a new mandate.
Urgent steps must be taken to reverse the current investment strike and export of South African capital - including capital controls and measures aimed at prescribed investment, and penalising speculation.
The urgent introduction of comprehensive social security.
Complete banning of labour broking, and not just its abusive work practises.
Labour laws
COSATU expects Comrade Zuma to reassure the nation that he will stop any move to amend the labour laws to allow government to ban protected strikes, which would be unconstitutional, a breach of ILO international conventions which his government has signed and totally impractical.
E Tolls
COSATU hopes that the president will announce the scrapping of the privatisation of our public highways in the form of the disastrous e-tolling scheme. Thousands of motorists are refusing to buy e-tags or pay their bills and the system is on the brink of collapse. The iniquitous, capitalist ‘user-pays' principle must be rejected.
Independent commission of inquiry into the mining industry
A special Declaration on the Marikana crisis was adopted by COSATU Congress calling for an Independent Commission of Inquiry into the mining industry, to look at measures to transform the sector. COSATU hopes President Zuma will announce when this will be set up, and that it will lead to the transformation of this economically crucial sector, and lead to a more equitable distribution of the surplus to mine workers, local communities and throughout the economy.
Crime and corruption
COSATU expects the president to announce that the government will intensify its promised campaign to rid the country of crime, corruption and the squandering of public money, particularly through the manipulation of tenders by both private companies and public representatives and officials. We look forward to an announcement that public bodies will employ workers directly and cut out the parasitic middle-men and tenderpreneurs.
We hope he will confirm that government is following up on the reports on the Nkandla scandal by the Ministerial Task Team, the Public Protector and the Special Investigations Unit, and that government will take firm action against those, in both the public and private sectors, found to have been responsible for the gross over-spending on upgrades to the President's residence.
To COSATU, the second phase of the transition requires that
The programme of the movement is clearly biased towards the working class, and is based on an agreed platform which is implemented by government
We deliberately build an activist interventionist state
The ANC-led Alliance constitutes the strategic centre of power
The Manifesto and Radical Economic Transformation
COSATU expects the President to flesh out in more concrete detail how the commitment to a radical economic transformation, and other welcome pledges in the ANC's manifesto, will be implemented, in particular how to implement the manifesto promises to:
Promote industrialisation and development of the productive sector, including through leveraging infrastructure, beneficiation, and state procurement
Take action to transform the financial sector, and channel investment into the real economy
Advance a more developmental macroeconomic policy which promotes employment and industrialisation
Promote local procurement to increase domestic production and the creation of decent jobs by directing the state to buy at least 75% of its goods and services from South African producers and support small enterprises, co-operatives and broad-based black empowerment.
Institutionalise long-term planning, integration and coordination capacity within the state to drive programmes for inclusive growth and job creation.
Implement a programme to build internal state capacity, & technical expertise, & reduce reliance on outsourcing & tenders
Tackling public & private sector corruption, & banning public servants from doing business with the state.
Realign the mandate of all state owned enterprises and DFIs to support radical economic transformation
Increase investment in rural development & agriculture, & introduce a Food for All programme to procure essential foods directly for poor communities
Accelerate the roll-out of our massive economic and social infrastructure programme, especially in energy, ICT, water supply andaccessible, reliable and affordable public transport, to unlock economic opportunities, create jobs and improve the quality of life of our people.
Address the needs of the youth for empowerment, education and job creation through a multi-pronged approach that creates job placements and internship schemes and sets aside 60% of employment and empowerment in infrastructure and other projects for youth and promotes youth employment and training incentive schemes.
Investigate the modality for the introduction of a national minimum wage as one of the key mechanisms to reduce income inequality.
Ensure that collective bargaining takes place in all sectors of the economy, and use bargaining councils to promote greater equity in the economy;
Strengthen the Employment Equity Act to force employers to report unequal incomes within and between all levels of the wage and income structure, and submit plans to progressively reduce these inequalities.
Eliminate abusive work practises in atypical work and labour broking and improving the capacity of the Department of Labour to enforce all the labour laws.
Combat apartheid spatial development through integrated housing and public transport programmes, and ensure all South Africans have adequate and quality housing.
Urgently finalise a comprehensive social protection policy, which ensures that no vulnerable South African falls through the social security net
Improve access to quality education, towards the goal of free education.
Commitment to massively expand FET and skills development
Implement a comprehensive publicly driven and publicly funded National Health Insurance system.
To achieve these manifesto commitments, the ANC will have to be prepared to challenge vested economic interests in the state and the private sector who continue to promote the agenda of powerful elites.
On the NDP, while the Manifesto sends contradictory signals, it does acknowledge that the NDP is not cast in stone, and "where appropriate, the plan will be adapted".
We will want to see a commitment by the President to take forward the resolution of the 2013 Alliance Summit to realign in particular the economic and labour market proposals of the NDP to address the fundamental concerns which have been raised. The Alliance Summit acknowledged that these concerns are legitimate and need to be addressed.
Conclusion
COSATU will back the government when it carries forward its policy commitments, especially the economic transformation and the creation of decent, sustainable jobs. But, as an independent, worker-controlled federation, it will not flinch from opposing any backtracking by government under pressure from big business.
The ANC and the government must remain biased in favour of the workers and the poor and forge ahead with the national democratic revolution and the transformation of our economy, in line with the Freedom Charter.
Statement issued by Patrick Craven, COSATU national spokesperson, June 13 2014
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