Issued by: GCIS
23 August 2001
Cabinet yesterday examined the plan by COSATU to embark on a general strike next week in protest against what the federation refers to as "privatisation" of state assets.
Is the strike really necessary?
Government wishes to reiterate, from the outset, that our Constitution and laws provide for the right of all citizens to engage in protest action, and for workers to withhold their labour on matters that affect them. We therefore respect the decision of the trade union federation to embark on this action.
However, the question that the trade union movement, ordinary workers and indeed all South Africans should ask themselves is whether this general strike is actually necessary! For the workers, in particular, a sacrifice of this magnitude should be weighed against the objectives to be attained, and indeed whether all avenues for resolving a particular problem have been explored.
We believe that, in respect of this proposed action, this is in fact not the case.
Secondly, even if the federation felt strongly about this matter, we seriously question the timing of the strike.
Definition of privatisation
From the pronouncements of Cosatu, "privatisation" is being defined as all actions that seek to introduce private sector resources and expertise into, and other measures aimed at bringing about competition and efficiency in, the provision of services. Disposal of assets that are not part of the core mandate of government is also condemned.
What this in fact means is that government is expected to retain ownership of assets such as holiday resorts and restaurants, which are not part of its core functions. We are also expected to eschew possibilities of bringing in private sector management and expertise, which can be critical in improving the efficiency of parastatals.
According to Cosatu's argument, government should depend on increased borrowing to access resources to expand and modernise state enterprises. Bringing in the private sector into this endeavour is taboo.
Restructuring and national objectives
Restructuring of state assets is an important element of the programme of government for the reconstruction and development of our country. The industrial objectives of the government require that we crowd in private sector resources in expanding investments and improving services to the people. Government does not have enough resources to achieve this; neither can we rely on increased public debt.
Besides, the state enterprises inherited from the apartheid regime were geared to service a small minority in our country, and to provide cushioned employment to sections of this minority. It would therefore be a dereliction of duty on the part of the democratic government, if we were to leave these enterprises in their current condition.
A critical element of speeding up economic growth and job creation is the lowering of input costs in the economy. Restructuring of state assets, including introduction of competition, is an important element of this. Such competition, and improved efficiency also help to lower the costs of services to ordinary citizens. Government has ensured that the restructuring process also helps in expanding ownership of the wealth of the country by black people, who were deliberately excluded under apartheid.
A coherent programme with consultation
The restructuring programme, including privatisation in some instances, is a mandated one, based on the Reconstruction and Development Programme and the electoral mandate conferred on government by the overwhelming majority of the people.
As stated in the RDP document, restructuring is not a matter of ideology; but one built up through a case-by-case assessment of these enterprises in terms of the government's broad objectives.
This programme is guided by the Policy Framework Document, which has been thoroughly discussed with stakeholders, including the trade union movement. In fact, in the finalisation of this Document, particularly in the first half of last year, numerous meetings were held with the leadership of Cosatu. Most of their oral and written submissions were incorporated into the final draft.
Precisely in order to take into account the interests of workers, a National Framework Agreement was adopted some years ago, and improved during the course of last year. This Agreement details the steps required, including a Social Plan, to protect workers' interests.
Cosatu agreed to all these processes and took active part in formulating the Agreement.
Co-operation and condemnation
In virtually all the enterprises where restructuring is taking place, detailed negotiations are conducted with the union movement. This is the case at Transnet (Spoornet), Alexkor, Airports Company (ACSA) and other companies, where agreements have been reached or are about to be reached, with Cosatu affiliates. However, some leaders of Cosatu as a federation have chosen to go against the wishes of the affiliates. This can have the effect of complicating the negotiations and frustrating the interests of ordinary workers.
We are told that disposal of some of the state assets merely feeds the appetites of so-called "new fat cats". Government makes no apology about the fact that black business-people do gain from this process. What Cosatu does not say, though, is that cheaper services, worker equity and a lower state debt benefit the working people.
But most astounding in Cosatu's behaviour is the fact that investment arms of the federation and its affiliates, or workers in these companies, have themselves taken advantage of this programme to acquire a stake in some of these enterprises. Concrete instances in this regard include the Airports Company, Alexkor (diamond mines), restaurants in National Parks (where the bid is still being finalised) and Aventura (where the Cosatu investment arm won the bid but could not raise the necessary finance).
These inconsistencies by Cosatu defy logic; and indeed they once more bring out in bold relief the question: is this strike really necessary!
Timing and the national interest
The Cosatu general strike happens in the two days preceding the World Conference against Racism, as most delegations will be arriving in our country. If Cosatu were to have its way, the strike should paralyse the economy in general, as well as services that will be critical for the Conference to succeed.
In other words, a Conference historically being held on the African continent for the very first time, dealing with matters that are at the core of the transformation objectives of South African society, stands the danger of being severely undermined, by an organisation that professes to support its objectives.
As such, besides all the substantive issues under discussion, the timing of the Cosatu general strike is inexplicable. It raises the question once more, is this strike really necessary!
The government's doors remain open
Government's door remains open for continued engagement with Cosatu on all these issues. Our experience in the engagement with Cosatu affiliates in sectors where restructuring is taking place shows that, where discussion is conducted with honesty and integrity, solutions can be found to the most difficult problems.
We are confident as government, informed by our conviction and the weight of the popular mandate, that the restructuring programme will benefit the overwhelming majority of our people. However, where there may be need for improvements in the detail, government is prepared to consider them. But there is no intention at all, on our part, to change the essence of this programme.
Unfortunately, as employer, government is obliged to adopt the no work, no pay principle.
Government, and we believe, the majority of workers and other South Africans, do appreciate that this strike is not really necessary. It is not worth the sacrifice to the economy, to workers' wages and to the country's ability efficiently to host the World Conference Against Racism.
We appeal to Cosatu's leadership to reconsider this action.
Edwin T. Smith
Ministerial
Spokesperson
Office of the Minister
Department of Trade and Industry
Tel. Nos:
(012) 322-7677 T
(012) 310-1376
(082) 783-6025