The Growth and Development Summit (GDS) took place in June. Cosatu President, Willie Madisha (WM) and Numsa general secretary, Silumko Nondwangu (SN), in separate interviews, share their thoughts on the lead up to the GDS and the eventual outcome.
There was a complaint that we went into the GDS without the alliance leading the process. Instead it was convened by Nedlac. Can you clarify.
WM: That is true. You will remember that we went to Ekurhuleni summit last year. Ekurhuleni Summit came as a result of your strikes, 'we don't want privatisation'.
Because of these strikes, the ANC/SACP/Sanco and ourselves came together and it was a big treat for workers. Because if you check, since the adoption of Gear in 1996 the alliance had not been meeting properly.
The alliance would only meet when there was a crisis or when there is a joint campaign to be pushed. The major agreement that was reached at the Ekurhuleni Summit of the tri-partite alliance was that we must go to the Growth and Development Summit (GDS).
You remember that Cosatu wanted what we called a People's Summit for economic development. We resolved as Cosatu that we would call all the forces that have supported us against privatisation like the churches, pseudo civic movements and so on.
And Cosatu compromised and said let the alliance drive and convene the GDS so that we can deal with the economic problems we faced. It is unfortunate that the alliance did not convene that GDS. Instead that was relegated to Nedlac.
Government wanted to convene it and we said 'no', so Nedlac became the organisation that then convened it and invited Cosatu, government and business and the community organisations represented by civic movements.
Even then, we would have thought that the tri-partite alliance structures would have sat down before that GDS for us to strategise and come up with a way forward and say this is the way in which government must approach this thing.
Because government is led by the ANC, the tri-partite alliance would sit and say 'comrades these are resolutions government will take into the negotiations at the GDS'. And we as Cosatu will go there and say this. But that never happened. We kept on writing letters and asking for a meeting and so on.
We were always there but then our alliance partner was never there, the leader of the alliance was never there. That is why we came out openly as Cosatu and said the truth – 'the ANC is not available for these tri-partite alliance meetings to prepare for the GDS.'
The Growth and Development Summit – is there hope for workers does it address poverty and job loss?
WM: I want to believe that yes there is a light, but at the same time there are things that we have not scored as workers/as the federation. A number of areas had to be looked at e.g. domestic investments are very small.
But you cannot rely on foreign direct investment, domestic capital invests more money on foreign investments. What we had was Old Mutual, mining companies from our own country investing overseas. Mining continues to invest more than 80% of accrued profits overseas, instead of developing the economy of the country.
In the Growth and Development Summit we were able to agree that each and every role player or partner must agree to invest at least 5% of their profit into the economy of the country. Cosatu wanted 20 – 25% but business refused.
At least 5% is fine as a starting point. Business agreed to take part in education learnerships. Cosatu wants sustainable quality jobs. Public works programmes are not perfect in dealing with jobs because they are often not sustainable e.g. cleaning schools and painting, is not a sustainable job.
You cannot paint a school or clinic for 2 – 3 years, it's something you do for a week or two, it is not a sustainable quality job. We still have to fight for permanent jobs, where people will be able to get UIF, Medical Aid and all benefits for people to be able to survive. But the GDS was a platform to engage.
Can you outline the negative features of the GDS?
SN: I have attempted in the Numsa Central Committee (CC) report to present a balanced view with regards to the GDS. It represents in my view an attempt to alleviate poverty and unemployment and ensure that institutions like Setas are able to function much more efficiently.
However, I think the key sticking point that has not been addressed adequately is macro economic policy and industrial policy. What was clear from processes leading up to the GDS is that issues related to Gear, privatisation were not going to be addressed at GDS.
Those issues were not on the table. It was also very clear on the part of business that they would follow government's position in so far as restructuring, investment policy went.
Government has attempted public works initiatives, range of other initiatives but it has no proper industrial strategy. Its strategy is export orientated, it does not seek to ensure that it expands domestic economy and therefore creates domestic consumption.
However there are vague agreements to look, post summit, at the real causes of unemployment. One hopes that this will lead to genuine negotiations on inequity, unemployment etc.
Going back to the fact that GEAR and lack of industrial policy were not discussed, you say it was because of the balance of class forces. Can you explain what you mean?
SN: At a global level and in our domestic economy, where we have had conservative macro economic policy, capital remains very strong. Unfortunately given the strength of capital, the progressive state is not prepared to take on capital.
Related to that are weaknesses of the organs of civil society. Some unions in Cosatu have serious organisational problems and that impacts on how Cosatu can push quite a number of issues forward.
In most Nordic countries where labour was very strong, their experience was that you don't enter into such an agreement where you are very weak, because you are not likely to achieve substantial things.
You also point to the organisational weaknesses. But how much does the loss of jobs, the massive unemployment also contribute to the labour's weaknesses.
SN: This is a point that I made at the (Numsa) National Bargaining Conference (in April). any stance taken by labour that suggests that it would not take part in GDS may be viewed as 'irresponsible' and 'uncaring' in the face of 30% unemployment.
People are not looking for better jobs, they are looking for one-day meals. Cosatu has to take into account the interests of thousands and millions of unemployed.
After the GDS, there was a lot said about the money that the private sector was putting in to create jobs. For example, in the auto sector an amount of R15 billion was mentioned. Is this investment that was already in the pipeline or is this investment that came out of the GDS process?
SN: It was investment that was in the pipeline already eg. Delta in Struandale plant is going to provide new facilities so that the company becomes more competitive.
What is important is whether that investment is translated into job creation. In the past it didn't always although in the case of the paint shop at Daimler Chrysler, because the paint shop is now able to run for 24 hours, that has been able to create jobs.
What is Numsa's and other affiliates responsibility in terms of monitoring whether these massive investments actually create jobs?
SN: If there is going to be a R15 bn investment in auto we need to watch what it means in terms of downstream development of small, medium and micro enterprises (SMMEs). We must ensure that in companies where there is investment, that jobs are created.
That is the acid test for Numsa and the rest of the affiliates. Part of the problem is the level of capacity on the part of Cosatu affiliates so that we engage seriously with regard to sectoral summits.
Get a copy of the GDS agreement from your local/regional office.
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Numsa News