The Congress of South African Trade Unions has welcomed many of the proposals in President Zuma's State of the Nation Speech. We are reassured that the government is still guided by the priorities outlined in the ANC election manifesto, which were to achieve major reforms and improvements in the following areas:
• Creation of decent work and sustainable livelihoods
• Education
• Health
• Rural development, food security and land reform
• The fight against crime and corruption.
In pursuit of these priorities, COSATU therefore warmly welcomes, among others:
• The recommitment to the Expanded Public Works Programme

• The extension of social grants to two million more children aged 15 to 18 years

• The reaffirmation of preparations to establish a national health insurance system

• The allocation of over 6 000 hectares of land for low-income and affordable housing

• A new initiative to provide housing finance for those with no access to it

• Support for the teachers' unions commitment to quality learning and teaching

• Ambitious targets for skills development

• Continuation of support measures to protect vulnerable sectors, contained in the 2009 Framework Agreement.

On other areas the Federation was somewhat disappointed by the speech. We are concerned that there was too little recognition of the extent of the massive crisis of unemployment, poverty and inequality, and consequently no plans for a new economic growth path. There is no evidence yet that we are on track to create new jobs on the scale required and bring down the world-record levels of inequality.
COSATU was particularly concerned that the President said nothing on the creation of decent work, the spread of casualisation of labour and the scourge of labour broking.

There was also a worrying suggestion that privatisation has a role to play in the electricity generating sector, through the participation of independent power producers and an independent system operator. COSATU remains convinced that moves towards privatisation will ultimately destroy a crucial public national service.

While welcoming the commitment to stepping up the fight against corruption, the federation was worried that the emphasis was on corruption at the lower levels of drivers' licences and ID cards, rather than the critical problem of officials abusing their public position to amass private wealth and the inevitable conflict of interest of public representatives who continue to be involved in private business.

COSATU will be producing a fuller statement and looking very closely at the forthcoming budget speech and the budget vote speeches by the government ministers.