COSATU Media Monitor, 30 September 2010

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Mluleki Mntungwa

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Sep 30, 2010, 6:29:02 AM9/30/10
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Thursday 30 September 2010


Contents

 

1.     Workers

1.1 Strike action to hit Kumba Iron Ore

1.2 Kumba planned strike won't affect output

1.3 NUM prepares for strike

1.4 Vavi denied public sector 'sold out' claims

1.5 A big day for wages in the clothing industry

1.6 Election Commission to source locally produced t-shirts

 

2.     South Africa

2.1 'Cosatu must cool it'

2.2 ANC to make use of Vavi

2.3 Vavi could take up another position in ANC - Mantashe

2.4 Firm paid R22m for partial job

 

3.     Comments

3.1 The life and death of a township tenderpreneur

 

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1.   Workers

 

1.1 Strike action to hit Kumba Iron Ore  

Business Report, 30 September 2010

Massive strike action will hit Kumba Iron Ore's operations on Monday, the National Union of Mineworkers (NUM) said on Wednesday.

This followed the collapse of wage talks between the union and the company, the NUM said in a statement.

The NUM has asked for a 10 percent wage increase for category 7-8 workers; a nine percent hike for category 5-6 workers and 7.5 percent increase for category 3-4 workers.

"The employer, on the other hand, offers 9.5 percent; 8.5 percent and 7.0 percent respectively."

The NUM said it had insisted on a one year wage deal while the company wanted to enter into a two year deal.

"The other difference is on the retention bonus on which the union demands that a once-off retention bonus of R3000 be paid to workers over a period of two months and the company wants nothing of it."

The NUM said it had been awarded a certificate of non-resolution to the dispute by the Commission for Conciliation, Mediation and Arbitration (CCMA) on Wednesday afternoon, allowing the union to embark on legally-protected strike action.

"The NUM will as from tomorrow (Thursday) brief its members in preparation for the massive strike action that will shut down Kumba Iron Ore's three operations of Sishen, Kolomela and Thabazimbi.

"We are very tired of all these tricks. The time for action has now arrived ... The time to strike is now," NUM chief negotiator at Kumba Eddie Majadibodu said.

Kumba Iron Ore said in an emailed response that the NUM had to, in terms of labour legislation, notify it in writing 48 hours in advance of any planned protected action.

"To date we have received no such notification." - Sapa

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1.2 Kumba planned strike won't affect output

Reuters, 30 September 2010

 

Kumba Iron Ore a unit of global miner Anglo American said on Wednesday that a planned strike by its workers will not significantly affect its production due to sufficient iron ore stockpiles.

The company said the National Union of Mineworkers (NUM), which represents workers at its Kolomela, Thabazimbi and Sishen mines, has given notice of starting a protected strike as early as Sunday.

"The strike is not expected to impact production significantly and the company also has sufficient iron ore stockpiles to maintain its normal delivery schedule," a Kumba spokesman said in a statement.

The NUM said on Monday that over 6,000 workers at Kumba would go on strike after rejecting the company's wage rise offer of between 7 percent and 9.5 percent on a two-year deal, depending on the worker's category.

The NUM is demanding pay rises of between 7.5 percent and 10 percent on a one-year deal.

Kumba, the world's 10th-largest iron ore producer, said the NUM represents 2,670 members at the three units.

 

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1.3 NUM prepares for strike

IOL, 30 September 2010

The National Union of Mineworkers (NUM) on Wednesday gave notice of a strike to Kumba Iron Ore, the company said.

The union said it would begin its protected strike by late Sunday or early Monday morning, Kumba Iron Ore said in a statement.

“The strike is not expected to impact production significantly and the company also has sufficient iron ore stockpiles to maintain its normal delivery schedule,” Kumba said.

According to the company, NUM has 2670 members who are bargaining employees at Kumba's three mines -Sishen, Kolomela and Thabazimbi.

Kumba said it had offered NUM members in different salary categories, 7.5 percent, nine percent and 10 percent, including a 0.5 percent “safety increment” based on the previous year's performance. - Sapa

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1.4 Vavi denied public sector 'sold out' claims  

Bu


The Congress of South African Trade Unions (Cosatu) denied claims from some disgruntled members that it "sold out" to civil servants when it suspended the public sector strike.

Cosatu general secretary Zelinzima Vavi warned that a danger was looming that if the unions did not make a "strategic retreat" and sign the agreement in terms that they could still dictate, the strike might fizzle out in the fourth and fifth week.

Public sector union have not yet signed government's latest offer, but they are unlikely to take to the streets again.

In terms of the draft wage agreement, signed only by government on September 13, government has offered a 7.5 percent wage increase and an R800 housing allowance.

Public servants on August 18 embarked on an industrial action that paralysed public schools and hospitals. The strike was suspended on September 6.

Addressing the National Education, Health and Allied Workers' Union's (NEHAWU) 9th national congress, Vavi said he was forced recently to respond to a letter written by a SADTU Mthatha branch that made "serious" allegations against the leadership of SADTU and, in the process, insinuated that the Vavi and public sector union leaders "sold out" the public sector workers.

"A danger was looming that if the unions did not make a strategic retreat and sign the agreement in terms that they could still dictate, the strike might fizzle out in the fourth and fifth week," Vavi said.

Government, he said, would punish the nurses and all other workers it sought to declare as essential service workers.

From this point NEHAWU, DENOSA and SADNU were carrying a "bigger risk for possible mass dismissals" if this scenario unfolded into a reality.

The strike itself was no longer as effective as it was in the first two weeks, Vavi said.

"Most of the government departmental workers had gone to back to work and were only coming out to participate in the marches. The numbers of workers in the picket lines were dwindling," he said.

Some nurses started to moonlight in the private hospitals and only joined the picket lines during the day.

Only SADTU and NEHAWU were effectively out on strike across all nine provinces.

The pressure was mounting, with media growing hostile after government blamed every death in public hospitals on the strike, Vavi said. - I-Net Bridge

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1.5 A big day for wages in the clothing industry

EDWARD WEST, Business Day, 30 September 2010

THE fate of 22000 jobs in the clothing and textile industries will be decided today at a meeting between manufacturers and the National Bargaining Council (NBC) for the clothing manufacturing and garment knitting industry.

NBC national compliance officer Leon Deetlefs says the meeting will decide whether the bargaining council proceeds with legal action against the 385 clothing factories nationally that have been found to not comply with minimum wage standards, or whether a new wage model will be determined for the industry.

He does not rule out the possibility of other solutions being found for an industry that has been shedding jobs for many years as it battles a number of issues, including illegal and cheaper imports from Far Eastern countries and India, rising costs and slow local demand.

The meeting follows a 30-day moratorium on factory closures, granted after about 120 firms in the Newcastle area shut their doors in solidarity when the NBC tried to close two factories in the area.

During the moratorium , discussions have taken place among the departments of labour and trade and industry, various provincial governments, the Congress of South African Trade Unions (Cosatu) and employer representatives , with the aim of finding solutions.

The 88 clothing and knitting factories in Newcastle that already have writs issued against them for not complying with the bargaining council’s rules have to present their case today to the NBC.

Mr Deetlefs says if no solution is found, jobs are going to be lost at either end of the wage scale. Either noncompliant factories will be closed, or jobs with the businesses that do comply will be lost because the noncompliant companies are competing unfairly .

He says this process has already started and the industry is “in a downward spiral’’. For instance, Seardel , SA’s biggest clothing manufacturer, has informed the NBC that about 850 jobs will be lost with the closure of the operating division of its Intimate Apparel SA subsidiary in Cape Town from November 30 , because it cannot compete effectively any longer.

The Southern African Clothing and Textile Workers Union (Sactwu) this week branded clothing companies affiliated with the Newcastle Chinese Chamber of Commerce (NCCC) as the worst employers. The Worst Employer Award, a broken brick, was announced at the union’s congress.

Chamber spokesman Alex Liu jokes that he will fetch the brick because he does not want it thrown at any of the factories, such as happened during the strike last year.

Mr Liu says Sactwu’s claim that the chamber’s clothing companies pay a machinist between R180 and R280 a week is incorrect; its members pay machinists R250-R550 a week. The legal minimum wage for a machinist is R479,10 a week.

Part of the problem is a lack of communication between the role players in the industry, he says.

Mr Liu says today’s meeting may decide the “survival of the industry” and, in this respect, the chamber would not tolerate any violation of basic conditions of employment among its members.

He says local clothing manufacturers in Newcastle are also struggling to compete with the low wages being paid by clothing manufacturers in Swaziland and Lesotho. Here, even fully NBC-compliant firms are being threatened.

“If we want to keep our clothing industry, we need a kind of a revolution,” Mr Liu says.

The chamber has criticised the central bargaining process because it does not take into account regional, urban and rural differences, and small clothing makers are not represented on the NBC.

Sactwu sec retary-general Andre Kriel says over the three-year period from July 1 2007 to June 30 this year , 18291 clothing sector jobs were lost, 52% of which were in areas where wage rates were the lowest in the clothing industry.

“The union is determined to intensify its compliance enforcement campaign in the immediate period ahead,” Mr Kriel says.

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1.6 Election Commission to source locally produced t-shirts

http://images.fibre2fashion.com/images/spacer.gif

 

Fibre2fashion, 30 September 2010

The Southern African Clothing and Textile Workers Union (Sactwu), in their attempt to rejuvenate the sick domestic clothing and textile industry, has succeeded in convincing the Independent Electoral Commission (IEC) to press for sourcing domestically made T-shirts during the local body elections coming up next year.

According to the industry sources, this pact between the IEC and Sactwu is a major move heading towards the country sourcing domestically manufactured clothing and textiles.

Cosatu General Secretary Zwelinzima Vavi, while applauding Sactwu’s efforts during its 11th National Congress a few days back said that, the drive towards more use of domestic items, is gaining importance in times of high un-employability in the country.

The official emphasized that, the firms willing to bid for supplying T-shirts that the electoral representative’s of IEC would be wearing during forthcoming local body elections, need to produce them domestically. Doing this would not only bring down the redundancy ratio, but may even generate new job opportunities within the sector, he added.

IEC for its forthcoming election would almost require 200,000 T-shirts, which would greatly help absorb the idle capacity in the sector. It would hardly take a few weeks time for a couple of mid-sized clothing factories to prepare these T-shirts, Baard said.

Employment statistics released by the National Bargaining Council depict that, the employment opportunities in domestic clothing sector declined by 43 percent or say 24,000 jobs, during the period from 2004 to April 2010. Also in the earlier part of the current year, Seardel laid-off around 2,000 workers.

 

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2.   South Africa

 

2.1 'Cosatu must cool it'

Mantashe spells out role for unions

 

By DOMINIC MAHLANGU, The Times, 30 September 2010

 

ANC secretary-general Gwede Mantashe has called on trade union federation Cosatu to focus on grooming future national leaders instead of constantly arguing about the "strategic political centre" of the tripartite alliance

Mantashe yesterday told delegates to the elective conference of the National Education, Health and Allied Workers' Union, in Boksburg, on the East Rand, that trade unions were the best schools for developing "revolutionary leaders".

He said a number of ministers in President Jacob Zuma's administration were products of Cosatu.

"It is a contradiction to say that the ANC leads a revolutionary alliance, but the alliance led by the ANC is not a strategic political centre [centre of political power]," Mantashe said.

He said trade unions should consider how they could strengthen their influence in the ANC. He said their failure to do so could lead to other social classes steering the ruling party away from the Left.

"Trade unions are the best schools for developing future leaders. They are schools for revolution," he said.

Mantashe told the conference that unions should be prepared to release for other duties the leaders that they produced.

Cosatu general secretary Zwelinzima Vavi on Tuesday told the conference that the ANC's failure to affirm that its alliance with Cosatu and the SA Communist Party was South Africa's strategic political centre has resulted in the members of the federation feeling that they were being used merely to garner votes for the ruling party.

He said the union would continue to ask the ANC for answers.

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2.2 ANC to make use of Vavi

 

By Carien Du Plessis, The Star, 30 September 2010

The ANC is considering a suitable position for Cosatu general secretary Zwelinzima Vavi when he steps down in 2012, says ANC secretary-general Gwede Mantashe.

But Vavi yesterday said he did not want to comment or “open a succession debate” in Cosatu with two years to go before the end of his term.

Speaking on the sidelines of the National Education Health and Allied Workers Union (Nehawu) national congress in Boksburg, Mantashe told journalists the ANC should look at where it could deploy Vavi, if he told the labour federation in two years’ time that he was not available for re-election.

“We don’t plan for individuals, but as a cadre of the movement, there is a lot of investment made in him and we don’t want to throw that investment away. We must think about it.”

Vavi’s next job did not have to be a leadership position in the ANC or government, but could be in “farming, a college or political school”, Mantashe said.

Vavi, however, told The Star he did not want to speak about plans to step down, despite announcing at his re-election last year that he would resign in 2012.

He has been in the Cosatu leadership for more than a decade.

“I am carrying through the mandate of Cosatu for the next two years, that’s all,” he said, adding he had been criticised last year for announcing his intention to step down, and would rather not talk about it anymore.

The ANC last week affirmed its ban on any premature campaigns for leaders to be elected at its next conference in two years’ time.

Mantashe, who addressed the Nehawu delegates on behalf of the ruling party, after both President Jacob Zuma and his deputy, Kgalema Motlanthe, cancelled their appearances at the conference this week, said trade unions were “a school for communism and not an end unto themselves. They must continue generating leadership for society.”

Mantashe, a former National Union of Mineworkers leader, lamented that many former trade union leaders who were now in the cabinet were not recognised for their experience in the unions.

They included Social Development Minister Edna Molewa and Basic Education Minister Angie Motshekga. Instead, only Women’s Minister Noluthando Mayende-Sibiya and Economic Development Minister Ebrahim Patel nowadays appeared to get recognition as former union leaders, Mantashe said.

To applause from delegates, he urged unions to “release leaders gradually so that we do not have a crisis of quick turnover of leadership”.

He said “unions must grow up leadership and release it for 2012”, and that those leaders should not “water down” what they had learnt in the trade unions.

Mantashe also stressed that the ANC and Cosatu “need each other”, but, turning to smile at Vavi and Cosatu president Sdumo Dlamini, added that the ANC remained the “strategic centre” and the “leader” of the ruling alliance.

Vavi said yesterday that although he recognised the ANC as the leader of the alliance, it could not be the only “strategic political centre” as it had to consult its alliance partners in decisions on policy and government deployments.

Cosatu has also expressed unhappiness that the ANC did not adopt a stance more in its favour at the party’s national general council last week, and warned that an alliance summit planned in the next two months could “implode” if no agreement was reached on this. - The Star

 

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2.3 Vavi could take up another position in ANC - Mantashe

Stephen Grootes, Eyewitness News, 30 September 2010

 

ANC Secretary General Gwede Mantashe said on Wednesday the party could deploy Zwelinzima Vavi to any kind of job if he does not run for another term as Cosatu General Secretary.

 

Mantashe told the Nehawu conference in Boksburg that the liberation movement must use people it has invested in.

 

Mantashe said he was not talking about the ANC’s top six positions when he said the party should deploy Vavi after 2012.

 

He also said last week’s ANC national general council showed the party was unified.

 

Mantashe also said a state mining company will be properly up and running in two years’ time.

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2.4 Firm paid R22m for partial job

Olebogeng Molatlhwa, Sowetan, 30 September 2010

THE North West Department of Public Works will pay a contractor that failed to complete a multi-million rand hospital project.

The departments of public works, roads and transport, along with the provincial health department and treasury, announced yesterday that it was willing to pay Tsogo Developers R22 million despite the company's failure to complete construction on the R456,5m Brits Hospital.

Tsogo and llima Projects were awarded the R456,5 million contract in 2005 and construction began on November 25 2008.

But work stopped in May this year after Ilima was liquidated.

At the time Ilima had a portfolio of construction projects worth more than R1-billion and employed about 700 people.

Public works spokesperson Roberta Makhambeni told Sowetan yesterday that the department had good reason to pay.

"In order to fast-track the re-appointment of the new contractor, the department opted for a settlement instead of the final account, which would have delayed the process," Makhambeni said.

Now a new contractor - JR Stock and Stocks, who lost out in the initial bidding for the contract - has been hired to complete the project. The hospital is scheduled to open in July 2012.

Makhambeni said "they were second-best (in the initial bidding process) and had the right grading".

Tsogo and Ilima were paid R57 million before construction was stopped in May.

Ilima's financial problems affected other projects, among them:

  • The R137 million for a government office complex in Vryburg, North West;
  • About R35 million for the construction of a psychiatric hospital in Sterkfontein, Krugersdorp, Gauteng;
  • R16 million for the construction of a taxi rank in Mabopane, north of Pretoria;
  • More than R60 million for the construction of 1500 houses for Mogale City municipality; and
  • R450 million worth of construction work in Eastern Cape.

In September 2008 Gauteng cancelled a R692-million contract that it had awarded the company Ilima, for the construction of the Jabulani Hospital in Soweto.

An investigation by the South African Revenue Services in September 2008 revealed that Ilima submitted a fraudulent tax document, when it tendered for the construction of the 300-bed hospital.

The Gauteng government is currently locked in litigation with Ilima to recover more than R56 million it paid out to the contractor for the Soweto hospital.

While giving his department's first quarter progress in August, Gauteng finance MEC Mandla Nkomfe said the province would begin naming and shaming contractors who failed to complete projects.

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3.   Comments

3.1 The life and death of a township tenderpreneur

Jacob Dlamini, Business Day, 30 September 2010

THERE must have been a time when, like many of his generation, Themba Phungula saw the African National Congress (ANC) as cause rather than opportunity. There must have been a time when he saw ANC membership as part of a righteous crusade. Sure, he grew up in the Pan Africanist Congress, something some of his ANC comrades always held against him, but he paid his ANC dues many times over.

By the time Phungula died last Thursday at the hands of one or more gunmen who made off with his laptop, he had likely come to see the ANC as opportunity rather than cause. He had probably come to see the ANC as a means towards self-interested ends. He was like many people of his generation, for whom the struggle for social justice had long become, as one of Phungula’s comrades told me last year, a “struggle for the stomach”.

I met Phungula early last year while serving as an outside observer at an annual board meeting of the Katlehong Resource Centre, an important site for the provision of social services and a haven for intellectual exchange and political activity in the East Rand township. Phungula was, if memory serves, also an observer at the meeting. But that did not stop him from participating like a full board member. He had strong ideas about how the centre could improve its services.

He had a habit of calling everyone and prefacing every remark with the expression “ntazinga” — township Zulu for thingy or thingamabob. He meant no harm by it. “Ntazinga” was a verbal tic , something he said without thinking. It never added to or took away from his point. It merely gave everything he said a signature unique to him. Comrade Ntazinga, some called him.

Phungula was also an active member of the Fanyana Banda branch of the ANC and a member of our ward committee. But a pillar of the community he was not. He was a community liaison officer, one of the most sought-after political jobs in township politics. Community liaison officers are appointed by ward councillors to serve as a bridge between communities and companies delivering services. The post comes with a salary and a community liaison officer provides companies with political insurance in the event of “service delivery” protests.

Community liaison officers have the power to dish out the jobs that come with development projects. They are not supposed to derive benefits other than their salary from the projects they oversee.

Somehow, Phungula managed to land himself gigs as both a community liaison officer and a subcontractor for one of the projects he was overseeing. The project was for the extension of an old age home, the same place where he was when he was shot dead at about 9am last Thursday.

When the project started, Phungula had 30 employees. By July last year, he had cut his workforce to 15. There was some resentment over how he hired the 30 and subsequently laid off half of them. A community liaison officer is supposed to hire locals, especially young people, for work on construction projects. However, locals claimed that Phungula recruited his workforce from a shebeen in the neighbourhood, figuring drunks would accept paltry pay and be easy to fire.

It did not come as a surprise when Phungula’s old age home became the target of a “service delivery” protest in July last year. A group of young men stormed the project, forcing the construction company responsible to seek police protection.

The man behind the protest was the secretary of the Fanyana Banda branch and one of Phungula’s bitter political rivals. The secretary was unemployed. Rumour had it he was trying to use the protest to get at Phungula and, by extension, the ward councillor, Phungula’s patron.

When I asked Phungula about the conflict of interest between his role as community liaison officer and his job as a tenderpreneur, he pretended he did not hear my question.

But Phungula could speak his mind when he wanted to. This made him a valuable source when I researched the Fanyana Banda branch last year. His frankness was also a constant source of irritation for some of his comrades. When he went to cast his ballot during last year’s general elections, he came across a group of fellow ANC members, including the secretary, in ANC regalia milling outside the voting station. “You are intimidating us,” he said to them, half in jest, half seriously. That joke was all the evidence the secretary needed to show that Phungula was Coping, meaning he was a member of the renegade Congress of the People. “Why would an ANC member feel intimidated by members of his own branch?” the secretary asked when I interviewed him.

During an interview, Phungula said: “The branch is dead. People are only in it for what they can get out of it.” By the time he died, he was certainly in it for what he could get out of it. Now he’s dead. May he rest in peace.

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