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The Congress of South African Trade Unions held a scheduled meeting of its Central Executive Committee on 1-2 June 2009. The COSATU National Office Bearers, provincial leaders and representatives of the 21 affiliates attended it.

Economic Crises

1. We meet in the middle of a massive economic emergency, under the impact of the international economic crisis. The worst fears expressed at the February 2009 CEC that there would be a job loss bloodbath are now unfolding.

2. The revelation that the country's gross domestic product (GDP) dropped by 6.4% in the first quarter of 2009, even worse than the drop of 1.8% in the fourth quarter of 2008, proves that South Africa has not escaped from the global downturn.

3. The implications for jobs, living standards and economic growth are frightening. There are predictions that this year alone almost a million workers will lose their jobs, and that the number of unemployed will rise drastically, far more that earlier predictions that job losses for this year would peak at 250 000.

4. The official figure of 4, 2 million unemployed people does not include the 1, 2 million others who are deemed to be too discouraged to look for employment because there are either no jobs available in their area, or there is no work requiring their skills.

5. Particularly alarming is the fact that the majority of discouraged work seekers are young people who have lost all hope of ever finding a job. Around 3, 2 million or 75% of all unemployed people in South Africa are between 15 and 34.

6. We are now officially deep in a recession, for the first time since 1992. It is a national emergency that demands a reassessment of our response. It cannot be ‘business as usual'. It demands immediate and drastic steps government, labour and business to save jobs, protect living standards and prevent the economy falling even further into recession.

7. The CEC recalled the discussions it had on the international economic crises in February 2009. It recalled that it adopted a comprehensive resolution and warmly endorsed the "Framework for South Africa's Response to the International Economic Crisis" which was negotiated at the Presidential Joint Economic Working Group in December 2008. We reaffirmed our support for the February CEC resolution as well as the framework. The task team established to drive the implementation at Nedlac has not worked mainly because government's participation at the leadership level has been absent.

8. The most urgent priority is the rapid implementation of all the constructive measures contained in the Framework. Amongst many other progressive proposals, COSATU has welcomed plans to:

Ø Scale up and improve the Expanded Public Works Programme

Ø Use the money available in the Sectoral Education and Training Authorities to fund the new special national jobs initiative,

Ø Direct development finance institutions like the Industrial Development Corporation to fast-track the implementation of public infrastructure projects,

Ø Significantly reduce the real interest rate gap between SA and key trading partners as part of responding to the global economic crisis.

Ø Rebuild local industrial capacity and avoid de-industrialisation

Ø Provide rescue packages for vulnerable sectors with significant employment and labour intensity.

Ø Lay the foundations for shared growth.

9. We call on the unions to continue to engage with membership on further solidarity the organised labour should show to the workers losing their jobs as a result of the crises and the unemployed. To facilitate this discussion, the Federation would get a full report on the work done by the Labour Job Creation Trust. These discussions will be concluded in the forthcoming COSATU 10th National Congress in September 2009.

10. The unions and the provinces that have not taken forward the framework will do so in the near future. This will include convening meetings with the employers, government departments, government institutions and state owned enterprises to take the framework forward.

11. We spent time asking ourselves a question as to whether the current initiatives were adequate given the scale of the shrinkage of the economy by a massive 6,4%. COSATU NOBs were instructed to convene a meeting with all the economic players that have supported the ideals of the labour movement, soon. The CEC Political Commission has also been tasked to answer this question.

12. Sometimes it is during crises that the greatest ideas emerge to solve long term structural problems of the economy. We see the crisis as offering our country a life time opportunity to abandon the path we have embarked upon this far and move towards the path of restructuring the economy and implementing industrial measurers that will put us on to the pedestal of decent work and creation of jobs at the mass scale to address our poverty and underdevelopment.

13. We agreed to convene a workshop of the COSATU Panel of Economists, followed by a meeting of the CEC's Political Commission, to work on ideas for restructuring manufacturing industry. Through this we will seek to evaluate our current industrial policy proposals, the ANC Polokwane resolutions and the commitment made in the ANC 2009 elections Manifesto as well as those contained in the Framework for South Africa's Response to the International Economic Crisis, with the view to improving these policies, to lead us out of the recession, and to create the desperately needed jobs at the mass scale.

14. We reject the call by some employers and conservatives for workers to accept 0% wage settlements, which would mean a wage cut in real terms. Workers are sensitive to the limits imposed by the economic situation of particular companies and sectors and will not irresponsibly jeopardise their jobs. But there can be no general policy of workers softening their wage demands when executive and shareholders' salaries, bonuses and perks remain as high as they are at present. All wage agreements must bring down the obscene levels of inequality.

15. We shall take the issue of the Framework Agreement back to Nedlac and do everything possible to restart its implementation. Should the process fail to be resolved however, we reserve the right to submit a Section 77 Notice to Nedlac.

16. We call on all South Africans to stand together to weather the economic storm, and urge government to advocate appropriate changes at global level to ensure that the deep-seated inequalities and lack of regulation in the global economy are rectified so that the world that emerges from the crisis is one founded on social justice, fair labour standards in all countries, equitable development and decent work for working women and men across the world.

17. We reaffirm the call for solidarity amongst affiliated unions and workers in general. Affiliates will be consulting their members on the possibility of asking all members to make a financial contribution to assist the victims of the recession.

Lessons of the elections and the political challenges

1) The CEC agreed that we fought a good fight and the results were evidence of a job well done! Our liberation movement and the National Democratic Revolution have been defended! The gains of the working class and the poor including the left shifts won in Polokwane have been defended even though these shifts remain contested.

2) The environment we faced was not ideal at all. We knew what was at stake. The National Democratic Revolution was facing serious threats from a grouping that sought to transform the liberation movement.

3) The CEC thanked and congratulated the cadres who spent time in the war room, affiliates and provinces who went to the ground and spoke to our people.

4) We also salute our people as whole. They showed eagerness to participate in the elections to keep our democracy vibrant and strong. The CEC believes that the levels of participation would have been even greater if a significant numbers of the employers have not taken a reactionary position of forcing hundreds of thousands of workers to work on the elections day. We agreed that we must push harder for election days to be declared non-trading public holidays.

5) Through our intensive campaigning we made Election Day to look like the festival of the working class. We used the last 57 days effectively, visiting houses, workplaces, farms and villages and were able to turn a lot more of undecided voters to vote for the ANC and into a firm support base for our revolution. The challenge still remain that we mobilise beyond the African working class and that in the Western Cape we still have to gain the confidence of the coloured working class communities.

6) Comrade Jessie Duarte, ANC Spokesperson, presented an analysis of the 2009 national and provincial elections results. Overall the ANC received 800 000 more votes than in 2004, but a 4% decline in the percentage of votes, to 65.9%. In all provinces except KZN the ANC's share of the vote either fell or remained static. The biggest drops were in the Western, Eastern and Northern Cape provinces. In KZN it rose by 15%.

7) The results reflect the class character of the support base of the ANC. They show that its support still resides in the black working class areas and that mostly the black middle class retained its confidence in the policies and programmes of the ANC.

8) The DA gained 1 million more votes and COPE 1.3 million and received 16% and 7% of the vote respectively. Yet the DA has lower support among Africans than the NP received in 1994. The DA gained its support from near extinction of the smaller opposition parties whilst COPE may roughly received two thirds of its support from the ANC.

9) We are extremely concerned about the overall the message that came out so clear - that the ANC has lost some ground and must rectify known and unknown challenges we face now. We need decisive action to address the reason behind our loss of support in the Western Cape and other provinces. We are calling for greater levels of unity within the ANC and between the ANC and the other alliance components and the broader mass democratic movement.

10)The crisis of poor service in particular at the local levels must be addressed more vigorously now and not later. We must defeat the biggest threat to our movement - crass materialism that has made so many of our people to develop cynicism against our political system and leadership. We must return to the best of our tradition - in particular selflessness and sacrifice on the part of our cadres for the betterment of the lives of the people as a whole.

11)The local government elections in 2011 must surely represent a reversal of this slight loss of support. The ANC centenary celebrations in 2012 should be about the celebrations of the best traditions of the liberation movement.

12)The process of building and strengthening our branches, locals and street committees must continue and COSATU leaders must lead from the front. Leaders are not made by positions but are moulded in the actual battlefield and participation in the structures of our movement.

13)The meeting reaffirmed its commitment to swell the ranks of the ANC, to strengthen the alliance at all levels.

New government

1) The elections and our close relationship with the new government, the deployment of COSATU and SACP cadres to head key ministries have all demonstrated that the alliance is enjoying a spell of unity, cohesion and high degrees of common purpose. It is a time of hope and possibilities. The challenge is how we will keep this unity strong in the light of the challenges ahead. We must keep the ANC united, vibrant and strong. The earlier damage to its unity and cohesion is testified by the existence of COPE.

2) CEC delegates reported that already they are receiving more prompt and positive responses from government than previously.

3) It was agreed to look closely at the State of the Nation Address to confirm that it is based on a Medium Term Financial Strategy five-year programme agreed at the Cabinet Lekgotla. We shall also be looking for confirmation that the new Ministry of Economic Development, and not the Finance Ministry, will be responsible for co-coordinating economics cluster.

4) The CEC agreed that the there needs to be clarity on the role of outside advisors to the Planning Commission, and that the Transitional Management Team should be transformed into a permanent body to oversee policy implementation. It was also agreed that government must elevate the role of Nedlac, and that the Economic Development Minster should be given responsibility for it.

5) Our overall posture and the relationship with the new government will be informed by the need to fight for the adoption of left policies. COSATU will remain vigilant and robust. At the same time, in line with the February 2008 CEC resolution, we have a duty to support and defend the government against unwarranted attacks from the invested interests hell-bent on defending the status quo. We will however strike a right balance between the opposite dangers of being too supportive of government and losing our independence and credibility amongst our members, and being unnecessarily too critical, and risking losing support in the middle ground within the ANC and in society.

Deployments

1) The trade unions are a school of communism. The trade union is a leadership development factory for the benefit of society and for progressive ideas in societies. In this context the CEC congratulated the following trade union leaders who are now serving the country in government and parliament. They are:

Ebrahim Patel: Minister of Economic Development
Noluthando Mayende-Sibiya: Minister of Women, Youth, Children and People with Disabilities
Thulas Nxesi: Chairperson of International Relations Committee
Alina Rantsolase: ANC Caucus Chairperson
Enoch Mthethwa - member of the national council of provinces assembly
Nonhle Mkhulisi - member of the national assembly
Provincial legislatures:

Norman Mokoena - Mpumalanga MEC for Co-operative Government
Siphiwe Mgcina - Gauteng
Xola Phakathi - Eastern Cape
Jan Tsiane - Limpopo
Bonakele Majuba - Mpumalanga
Civil Service, etc

Abbey Witbooi - Correctional Services
Mthimkhulu Mashiya - Transnet Bargaining Council

2) These leaders join several other unionists who have served our national legislatures including the President, Deputy President, several other ministers and members of the legislatures at all levels.

3) Several of the new deployees addressed the CEC and gave their commitment never to overlook the interests of the workers. They pledged to continue to engage with the trade union movement at all times, and urged COSATU to exert its influence on government.

4) We congratulated Salome Sithole; the SADTU Vice President who is also a member of the COSATU CEC, for being co-opted to serve in the ANC NEC. The struggle to get more civil society into the ANC and for a balanced and representative ANC NEC will continue to 2012.

5) The CEC discussed what all these advances mean to the SACP. Firstly its National Chairperson was elected as the Secretary General of the ANC. Now its General Secretary, Deputy General Secretary and Treasurer are all elected as MPs, and have all been appointed as ministers at national level (provincial level in the case of the National Treasurer). This means there is no full time political capacity in the SACP as catered for in the SACP's constitution. This discussion will continue within the structures of the Federation. Workers cannot afford to lose the political insurance cover we have enjoyed for so long. The SACP is our vanguard, without which we are weak and vulnerable politically.

National Congress

The CEC agreed that the theme for COSATU's 10th National Congress, on 21-24 September 2009, would be "Consolidating working class power in defense of decent work and for socialism". Among the keynote speakers to be invited are President Jacob Zuma, SACP General Secretary, Blade Nzimande, and ITUC General Secretary, Guy Ryder. It was agreed to also invite President Hugo Chavez of Venezuela.

BRT

The CEC reaffirmed its support for the Bus Rapid Transit projects being set up in various cities. It should provide a more efficient and reliable public transport system. COSATU calls on local governments to ensure broader participation and buy-in by all key stakeholders. In this regard, whilst we appreciate that our transport union SATAWU has been consulted, we noted with dismay that SAMWU which is the union organising the bus drivers is not being consulted on this important project. This means the future role of the buses is not clarified with the union.

We agree that all taxi associations should be consulted and be one of the stakeholders in the roll out of the BRT. It is however not true that the taxi associations have not been consulted.

The CEC expressed serious concerns that some of the fragmented taxi associations have threatened that unless the BRT is stopped or wholly handed to them to run, they may disrupt the Confederation and 2010 FIFA World Cup. These threats are not helpful. Workers have waited for the entire lives for South Africa to host this, the biggest sporting event in the world. COSATU won't allow any section of our society, including the our tactical allies in the taxi associations, to use the 2010 as a bargaining chip.

We will seek a meeting with the taxi associations, with whom we have enjoyed a good relationship, to discuss their concerns and our concerns about their conduct.

Corruption

The CEC congratulated affiliates for their efforts to expose and fight against corruption and abuse of power by the authorities. In two cases COSATU unions have been instrumental in exposing scandals around the misuse of public funds, in line with our firm stand against corruption.

Following a sit-in by CWU members at the office of the Acting Group Chief Executive on 11 March 2009, Strini Naicker, General Manager of TV Sales, and Lene Chamberlain, who is responsible for appointments at the SABC, were put on special leave from 12 March 2009.

This followed the campaign by SATAWU, which led to the dismissal of SAA Chief Executive, Khaya Ngqula, arising from the union's dossier of allegations against him.

The CEC insisted however, that while welcoming these dismissals and suspensions, this must not be a substitute for full investigations into all the allegations made by the unions against all those in leadership positions with both organisations.

Fighting corruption and positioning workers and their unions as the key fighters against the scourge of corruption in private and public sector is going to be key insuring a clean government and a society.

Farm workers

The CEC discussed the continuing abuse of farm workers and congratulated the COSATU North West province for consistently highlighting the issue of racist and violent attacks on farm workers and dwellers, which has led to death threats being made to the Provincial Secretary.

Our struggle to build a non-racial, non-sexist, democratic and prosperous South Africa is far from over and it remains relevant 15 years after our democracy. The position of two million farm workers and dwellers is tantamount to slavery. For them there was never a 1994 breakthrough. They live in virtual concentration camps and all attempts by government and unions to provide assistance stop at the farm gates. It is a scar on our society.

Central to the problem is the private ownership of land, which means that farm owners can even block the building of schools and clinics on ‘their' land.

The campaign to recruit farm workers into FAWU must be assisted by every other affiliate and the government must be given full support as it strives to implement the progressive manifesto commitments to rural reform, by bringing in new legislation and changing the constitution if necessary. We must also back local governments' attempts to deliver all municipal services to farm dwellers.

Eskom tariffs

The February CEC heard that NERSA had projected that tariff increases would be between 20% and 25% per annum over a three-year period. Eskom has now confirmed that it applied for a 34% tariff increase, which is 25% projected by NERSA in 2008, plus inflation. Eskom says this would be an interim application as discussions with stakeholders continue; another application will be submitted around September 2009.

Whilst we fully appreciate the challenges facing Eskom and are willing to assist it overcome these, we shall oppose their application for 34% electricity tariff increase and urge Nersa to reject it. Such a massive increase would inflict misery on thousands of poor households, especially as there is not yet a tariff policy that protects poor consumers, many of who would have to give up using electricity at all, faced with such a rise in their cost of living.

A 34% increase would also hit hundreds of small and medium businesses that are already struggling with the effects of the global financial crisis. Many might be forced to close their doors and retrench workers, further exacerbating the descent into recession.

The CEC reaffirmed that consumers should not have to shoulder Eskom's capital cost of building new generating capacity. This must come from government, who failed to provide these funds in the late 1990s despite Eskom's warning that there would be a crisis if they were not given the money at that time.

We call on society to seriously consider the suggestion made by the Reserve Bank recently that a once off tax be implemented to address the crises Eskom is facing.

Labour will continue to discuss these issues in Nedlac and will strive to reach an agreement with government and business, and in particular argue for a tariff model that will ensure that big users pay more and the poor less.

SAMA

The CEC received a report on the breakaway group of doctors, the United Doctors' Forum, who have talked of forming a breakaway union from the COSATU-affiliated SA Medical Association. The NOBs have tried to convince them not to go it alone but to work within SAMA with the purpose of improving its internal operations and democracy. The rest of the public-sector members of SAMA share their concerns particularly over the internal organisational challenges SAMA faced in particular with regard to adherence to the principle of worker control and the outstanding OSD salary increases. COSATU is taking this matter up with government strongly. Fragmenting the power of unions is not revolutionary.

Telkom/Vodacom deal

The CEC endorsed the legal action taken by the COSATU NOBs to try to block the sale of Telkom's 15% shareholding in Vodacom to the British company Vodafone, which now has a controlling 65% shareholding in the company. Despite having the belated support of ICASA, and a very strong case, the court unfortunately rejected our application, with costs. The judge argued that the potential financial harm caused to Telkom and Vodacom shareholders outweighed the need for public discussion on the loss of any remaining public control over this big, important company.

The CEO of Vodacom has since requested a meeting with COSATU to discuss our concerns. The CEC agreed to accept this invitation and, together with the Communications Workers Union, to engage with the company. The meeting discussed a proposal to launch a consumer boycott of Vodacom but decided not to do so as legal contracts signed by consumers including unions make this a difficult campaign to sustain.

International issues

The meeting reiterated its support for the SA government in opposing the current Doha texts on agriculture and industrial goods, which are potentially disastrous for developing countries, and endorsed COSATU's demands that:

There should be no commitment to complete the Doha round unless all implementation issues that have prevented developing countries from benefiting from the Uruguay Round trade liberalization are resolved to the satisfaction of developing countries. The current world trade system is so imbalanced that liberalisation does not provide the claimed benefits of free market and free trade.
In light of the economic crisis, SA should reject the current text on agriculture and Industrial goods and not offset any gains in these sectors with commitments to open, deregulate and privatise the services sector under the General Agreement on Trade in Services (GATS).
SA should reverse its GATS commitments on the liberalisation and deregulation of the financial sector.
SA should not sign off on any bilateral agreement as such an agreement might undermine SA's position at WTO and worsen the economic crisis.
The federation is to hold an International Solidarity Conference on 24-27 June 2009. It will assess all our international work and draw up proposals for the National Congress in September.

The meeting expressed its concern at the continuing bloody conflicts in the Democratic Republic of the Congo, which was discussed at a seminar on 12 March 2009.

Tribute to Violet Seboni

The CEC paid tribute to the life and work of Violet Seboni, deputy President of COSATU and SACTWU, who passed away on Friday 3 April 2009, in a car accident on her way to Mafikeng, where she was to participate in the ANC election campaign as a COSATU deployee. She was the first COSATU National Office-bearer to die in office and while performing duties.

Her death was met with shock and sadness; for she had so much promise left in her and was destined to play a bigger role in the affairs of the nation. The Federation and SACTWU have undertaken to honour her memory.

Violet Jacobeth Seboni was elected deputy President of COSATU in 2003. She worked at Supreme Hat 'n Cap.

The COSATU General Secretary and the previous SACTWU General Secretary held discussions to develop some proposals for consideration. These ideas were discussed by the SACTWU National Executive Committee, who supported the proposals, subject to endorsement by the COSATU CEC.

The CEC agreed to the following:

1. That a booklet commemorating her life be brought out for COSATU shop stewards (or that an entire edition of The Shopsteward be used for this) and distributed by the COSATU Congress.

2. That a room be set-aside in COSATU House and be named the Violet Seboni room.

3. That an annual Violet Seboni Lecture be established by COSATU, possibly in partnership with Wits University or the University of Johannesburg.

4. That a Memory Book be prepared for the two children with pictures, copies of speeches and notes from various people (including the Presidents of the Alliance) and from all CEC members, recalling their memories of the dear comrade.

5. That a Family Trust Fund be set up to cover the costs of her two dependents. (See proposal below)

6. That she be awarded the Elijah Barayi Award on a posthumous basis.

7. That we explore what national Awards can be conferred posthumously and that she be nominated for it

The CEC endorsed these recommendations, which are to be implemented before the COSATU Congress, where there will be a moment of silence to her life and work, with a short DVD with images of Comrade Violet on the screen.

The CEC agreed to set up of a Trust Fund for the two children, Lesego and Lesedi, to help cover their living and education costs. Violet was the sole breadwinner and she was a single mother earning R600 a week.

COSATU and SACTWU will work together to raise R800 000 as the capital sum for the Trust Fund and invest it wisely. The Trust would pay the university fees of either child who choose to study further.

It was agreed that SACTWU and COSATU guarantee a donation of R150 000 each (equal to R300 000), and that the payment from Violet's Provident Fund of R73 000 plus R10 000 funeral payout, be put into the Trust. This will give a capital sum of R383 000. We should then raise R417 000 to reach the target of the Trust.