Johannesburg - Cosatu has accused the government of being ineffective in handling South Africa's jobs and economic crisis, warning that the country is effectively in a recession.
Pulling no punches, the federation's leaders said promises by the government of a second radical phase of economic transformation was “stillborn”, and it reiterated that the National Treasury and SA Reserve Bank were the “biggest obstacles” to growing an economy that benefited all.
Cosatu’s combative stance may dash the hopes of those in the state and the ruling party who hoped for calm in Tripartite Alliance relations ahead of a tough municipal election.
Frayed labour relations could also worsen after the federation threatened to turn up the heat on employers, saying the pain of the economic downturn needed to be shouldered by both workers and bosses.
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The leaders were briefing reporters in Joburg following a 3-day central executive committee meeting which discussed the economy at length.
The official unemployment rate is 26.7 percent - the highest since 2005 - and there is no end to mass retrenchments in sight. While the government has been holding high-level meetings on the economy with business, which labour was invited to after complaining of being ignored, the federation believes this is not enough.
“We are still concerned by the government's indecisiveness and vacillation in the face of massive retrenchments affecting all sectors of the economy,” said Cosatu general secretary Bheki Ntshalintshali.
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“With real unemployment sitting at 36 percent, it is no wonder that we are seeing rising popular discontent, a growing sense of alienation, frustration and sometimes despair among a significant section of the youth, the unemployed and the working poor.”
While the federation believes that only by changing South Africa's “neo-liberal” socio-economic policies will the country get out of its economic doldrums, it will push for a number of short-term interventions it believes will help during talks with the government and business.
These include a halt on wage increases for senior executives in both the public and private sectors, and a wealth tax for the super rich.
“In our view we are in a recession, but not in a state where we are able to borrow some money. What we want to have a discussion with the president and the chief executives on is what are their short- term interventions.
“For example, the starting point from business is the moratorium. They can't continue retrenching in the manner they do just to protect their profit. We must share the pain in terms of the job losses,” said Ntshalintshali.
He said the Industrial Development Corporation should also up-scale its assistance to business in distress because it had been shown where the IDC had intervened, it had managed to stabilise and eventually save firms, leading to the retention of jobs.
Ntshalintshali said Cosatu would also suggest that government offers more incentives to businesses in areas where jobs could be created.
The federation would also come to the party and re-look the investments of the Public Investment Corporation, which holds R1.9 trillion of government employees’ money.
“But we are going to these negotiations not just telling government what they need to do. That is why we have committed to redirect our investment including in our retirement fund. Workers control more than R1 trillion in terms of the retirement funds, but where is it being invested? Sometimes it is in the speculative markets,” he said.
THE STAR