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The Federation of Unions of South Africa (FEDUSA) on Friday met with Trade and Industry Minister Rob Davies at his offices in Pretoria.  The meeting was very successful and positive outcomes were reached on key issues such as United States Trade Relations and multinational engagement.
 
The meeting with the Minister and his team took place at the Department of Trade and Industry (dti) Campus in Sunnyside, Pretoria after a FEDUSA request to discuss “matters of mutual interest”.  The FEDUSA delegation was led by Vice-President (Development) Ashley Benjamin, who is also the Federation’s chief negotiator at the Trade and Industry Chamber of the National Economic Development and Labour Council (NEDLAC).  Benjamin was accompanied by FEDUSA Deputy General Secretary Krister Janse van Rensburg.
 
“We are very positive about our engagement with the Minister.  Minister Davies has always been approachable and we are very pleased that he again allowed the exchange of views that took place today,” said Benjamin.  “We agree on the importance of foreign direct investment and trade with the developed economies, while we are also in consensus about our need to stimulate our local industries,” Benjamin added.
 
FEDUSA’s agenda included a proposal to establish a National Contact Point (NCP) for South Africa to monitor the behaviour of multinational enterprises, the extension of the African Growth and Opportunity Act (AGOA) trade agreement framework with the United States of America (USA), as well as the processing of industry incentives offered by the dti.
 
“We explained that the OECD [Organisation of Economic Cooperation and Development] had made certain proposals regarding the establishment of National Contact Points in countries, in order to monitor the activities of multinational enterprises.  FEDUSA’s role as an associate affiliate to the Trade Union Advisory Committee [TUAC] to the OECD places us in a unique position to compare international best practice in this regard.  We cited the recent example in Bangladesh where workers lost their lives in a garment factory due to unsafe working conditions.  The Minister proposed that we table the proposal at NEDLAC for further discussion, and we agreed that this would be a good approach,” commented Benjamin.
 
Benjamin was also positive about the AGOA trade agreement with America, which gives South Africa certain trade advantages with America.  The AGOA is up for extension and many fear that South Africa might be excluded in future.
 
“We told the Minister about our lobbying processes regarding AGOA, both in the United States and here at home.  We reported of our engagements with our labour counterparts in the States, as well as a recent interaction with the US Ambassador.  The Minister also shared the dti’s discussions with the USA, and pledged technical support for our further endeavours in this regard,” said Benjamin.
 
Benjamin, who is also the General Secretary of the National Union of Leather and Allied Workers (NULAW), was satisfied with the engagement regarding industry incentives.  He praised the Minister for visiting the shoe factories and said that this had raised a lot of awareness regarding the importance of buying locally manufactured shoes.  “The Minister even showed us that he was wearing shoes that he bought and one of the factories,” exclaimed Benjamin.  “We are so proud that he is wearing shoes made by our members,” he added.
 
Benjamin also shared with the Minister the success story of an intervention by the Job Creation Trust (JCT) in assisting a company in distress and saving jobs after the 2008 global financial crisis.  He explained how this company, a baby clothing designer, had made great inroads since the JCT bought it out and saved approximately 800 jobs.
 
“We are glad to report that many of our well-known clothing retailers are buying from this company and, frankly the demand is so high that we need further capital support.  The Minister shared our optimism about the fact that retailers are now actually incentivised to buy locally made baby clothing over imports from other countries.  We agreed to approach the Minister formally in this regard, from the side of the JCT”, said Benjamin.
 
“All-in-all we are very positive about our exchange of views with Minister Davies,” said FEDUSA Deputy General Secretary Krister Janse van Rensburg.  “As always we could talk honestly and openly, and see where we could take hands as social partners to help our beautiful country reach its full potential.  We will certainly follow up on the next steps as agreed,” he concluded.