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The Federation of Unions of South Africa (FEDUSA) supports Government's announcement at the G20 Summit to invest $2 billion of its reserves in the International Monetary Fund (IMF) Firewall Fund to counter financial market tensions and fiscal imbalances that have a major impact on growth, employment creation and confidence.

“We are of the firm view that as long as the global economy remains vulnerable, there would be a negative impact on the lives of people across the world, affecting employment creation, trade, development and the environment. The issues of economic growth, employment creation, development and confidence are interconnected and inseparable and must be tackled holistically”, stated FEDUSA General Secretary Dennis George.

FEDUSA welcomes the resolute commitment of Government to play a more progressive and responsible role within the IMF to strengthen the world economic recovery, to support demand and restore confidence. It is leadership of this nature that is required in time of crisis to deal with economic uncertainty. We are supportive of the explanation of President Zuma that resources will be made available for the whole membership of the IMF and not earmarked for any particular region but will be utilised through temporary bilateral loans and not purchase agreements to the IMF’s General Resources Account.

“We are also confident that our funds will earn interest, and that funds would only be drawn down in emergency circumstances. This firm commitment of Government will also strengthen our call for a comprehensive reform of the voting power and reform of the quota shares within the IMF,” added George.

George was also part of the International Trade Union Confederation (ITUC) delegation to the IMF to discuss the prioritisation of decent work, quality jobs and support for the Social Protection Floor to be established in conjunction with the International labour Organisation (ILO).