COSATU Media Monitor 8 June 2010

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1 COSATU/ANC

1.1 ANC plans to charge Vavi reportedly dropped

NewsTime, 8 June 2010

The ANC is believed to have quietly retreated from pursuing disciplinary charges against Cosatu secretary general Zwelinzima Vavi after a meeting held in Limpopo Monday.

Business Day reports that several senior ANC officials warned against this move calling it unprecedented and arguing that the ANC had no constitutional basis for pursuing such. ANC secretary-general Gwede Mantashe refused to elaborate on the matter saying only “I cannot comment on any discussions of the ANC, only decisions”. Vavi landed in hot water with the ANC when he suggested that the government was slow to take investigative action against ministers accused of corruption.

The ANC’s apparent backtracking suggests that the need to maintain unity and cohesion in the Alliance has trumped other considerations and will be seen as a victory for the greater alliance by most. The alliance political council meets today in Pretoria. Communication Minister Siphiwe Nyanda will however persist with his legal action, it has been reported. Some are painting Nyanda’s court action as the ANC’s “Plan B” in dealing with Vavi.

Nyanda has offered out a carrot for Vavi saying he will can the legal action if the Cosatu leader apologises. Cosatu president S’dumo Dlamini warned the matter could have far reaching consequences for the alliance saying “This matter stands between us, whether we like it or not. It overshadows the important … political council meeting that has to discuss major issues”.

Nyanda’s apology window only extends as far as Thursday and given that Vavi and Cosatu remain defiant, it is likely the court action will proceed.

http://www.newstime.co.za/SouthAfrica/ANC_plans_to_charge_Vavi_reportedly_dropped/6075/

1.2 ANC backs off Vavi, but is there a Plan B?

Karima Brown, Business Day, 8 June 2010

THE African National Congress (ANC) yesterday quietly dropped all discussion about sanctions against Congress of South African Trade Unions (Cosatu) general secretary Zwelinzima Vavi, following a meeting of the party’s national working committee in Limpopo.

While ANC secretary-general Gwede Mantashe last night refused to be drawn into the matter, saying: “I cannot comment on any discussions of the ANC, only decisions,” Business Day understands the matter has been laid to rest after it was discussed by the party’s top six leaders before the committee meeting.

Several ANC leaders who opposed plans to censure Mr Vavi apparently spoke out about how such a move was unprecedented in the history of the tripartite alliance and that there were no (ANC) constitutional grounds for the planned censure during the committee’s discussions yesterday.

The climb-down suggests that the move against Mr Vavi did not enjoy unanimous support within the top echelons of the ANC to begin with. It also signals yet another defeat for ANC Youth L eague leader Julius Malema and efforts to unseat Mr Mantashe and have him replaced by Deputy Police Minister Fikile Mbalula in the battle for control of the ruling party.

By letting the Vavi matter go, the ANC also defused the loaded political environment within the tripartite alliance, ahead of today’s all-important meeting of the alliance political council in Pretoria.

However, Communications Minister Siphiwe Nyanda’s threat of legal action unless Mr Vavi apologises for reportedly intimating that he was corrupt is still on the cards.

But many in the tripartite alliance interpret Gen Nyanda’s threat as a hasty “ plan B” to deal with Mr Vavi, especially after it became clear last week that efforts by some leaders of the ANC to have him charged appeared to have been torpedoed .

This view has gained currency because by last night, Mr Vavi had still not received any formal notification of being disciplined since the working committee decided to charge him last week. But even if charges were formulated (and they would first have to be referred to the ANC’s national disciplinary committee), those who wanted to censure Mr Vavi in an ANC process would have been hard-pressed to find evidence of wrongdoing on his part.

That is mainly because he would have spoken in his capacity as leader of Cosatu, over which the ANC has no jurisdiction.

While Cosatu is in an alliance with the ruling party and bound by agreements within the alliance, it guards its independence jealously and has unsurprisingly put ANC leaders on notice that efforts to silence it will not be tolerated.

More important , Cosatu’s warning that proposed disciplinary action against Mr Vavi threatens to undo the alliance has upped the ante considerably .

“This matter stands between us, whether we like it or not,” says Cosatu president Sdumo Dlamini. “It overshadows the important … political council meeting that has to discuss major issues.”

By raising the stakes, Cosatu has created an impasse in the alliance, the only elegant way out of which is action by the aggrieved parties in a private process. This lets the ANC off the hook, but allows invested individuals recourse, albeit through the courts. Moreover, the fact that the ANC has officially chosen to take the fifth on the Vavi fracas, while Cosatu has gone on the offensive publicly, suggests the ANC is far from united on the matter and would not be averse to letting it slide.

The party may yet be forced to take sides, however. There is no predicting the course of a politically inspired libel action against Mr Vavi. Those with short memories need only ask former president Thabo Mbeki , or the former heads of the National Prosecuting Authority, about the unintended consequences of pursuing political ends through court action.

While Gen Nyanda has given Mr Vavi until Thursday to apologise , signs are that the matter will go to court for what could be a long, drawn-out battle.

Yesterday, Mr Dlamini told Business Day that neither Mr Vavi nor Cosatu had been informed of Gen Nyanda’s intentions to seek redress through the courts, despite a letter to that effect from Gen Nyanda’s lawyers. “We know what game they are playing. We regard this threat of suing the general secretary of Cosatu as the disintegration of the meaning of politics in the alliance, a plan B because they are not getting their way in the ANC,” Mr Dlamini said .

Mr Vavi’s cause will not have been hurt by the outcome at the weekend of the disciplinary hearing against Transnet freight rail boss Siyabonga Gama. He lost an internal Transnet disciplinary hearing over charges involving tender irregularities after he awarded an R18m security contract to a company associated with Gen Nyan da.

The documentation used in the Transnet disciplinary hearing could be requested by Mr Vavi’s legal team. A court case could reveal the nature of some of the deals in which politicians and senior black business figures are involved.

http://www.businessday.co.za/articles/Content.aspx?id=111173

1.3 ANC drops talk of charges against Vavi after crashing into Cosatu wall

Stephen Grootes, Daily Maverick, 8 June 2010

As news of the ANC’S top six gagging the insanity of trying to charge the leader of their biggest alliance partner filters out, it’s obvious the decision was not based on kindness or goodness of heart. The reality is that, for the first time in many years, the ANC has met an opponent it cannot beat.

It must be so weird to be a member of Cosatu and member of the ANC these days. Right there in your wallet are your two membership cards, with “An injury to one is an injury to all” uncomfortably close to “Working together we can do more”. You personify what the alliance is supposed to be, perhaps you even have an SACP membership card, making your wallet a kaleidoscope of yellow, black, green and red. You know exactly who your leaders are and you know they support roughly the same things. And yet, every day for the last week or so, each and every Cosatu affiliate has had a dip at the ANC. And your ANC card is getting badly jostled. And it doesn’t have anything to say for itself.

There’s something planned here. It’s about the tactics of transparency and the fight for the approval of the public. Ever since the ANC’s national working committee decided to charge Zwelinzima Vavi with “ill discipline”, the public traffic has all been one way. And, staggeringly for an organisation with the oft-quoted 2 million members, Cosatu’s discipline has been steely - Stalinesque if you will.

This is the kind of thing the ANC Youth League would have loved to have seen during its leader’s little brush with authority. Sure, there were statements of support from various provinces, but as half of them are now split down the middle, it’s obvious the unity was pushed a little too far and the leadership and membership not always in sync. Also, the League's timing was way off. And as we know, timing in politics, like in every good comedy, is absolutely crucial. The League just couldn’t get it right. Some provinces issued statements, some didn’t, some forgot and none of them can spell.

Cosatu has no such problems. It was not just its provinces, but its affiliates too that roundly jumped to Vavi's defence, with a fervour not seen for a long time in South African politics. And need we remind you, each union does have a mind of its own. So when the teachers, the chemical workers and the miners all agree on one issue in our politics, you know it is important.

The ANC's protracted silence tells us far more about itself and who is actually running the show than Cosatu’s boom-boom approach reveals about its true nature.

The mass display of unity by Cosatu must be partially responsible. Their approach of saying, “Look we’re not going to take this lying down and these are all the friends we can bring round to behind the toilets if you want to fight about it”, is working. Because now the ANC knows that if it really wants a barney, there’ll be one. And Vavi, who won’t run again for the post of secretary general of Cosatu is turning into a strong champion of a principled stand against corruption and the alienation of power.

And even if the current ANC working committee would think of using Cosatu’s succession issue to wait out the Vavi problem, the two front-runners are both backing their current leader to the hilt. The National Union of Mineworkers’ Frans Baleni is fully behind Vavi, as is the National Union of Metalworkers of SA’s Irvin Jim. And that tells you one of two things. Either Vavi is so popular in the trade union movement that no one dare go against him, or that this is a principled fight, in which case the ANC has a serious problem on its hands.

The options open to the ANC were limited anyway. With Vavi not backing down either to the NWC or to communications minister Siphiwe Nyanda, they could either go ahead and charge him, and stress the alliance to the point of fracture. Or wimp out, which it appears they chose to do. Some of the NWC members may still cling to the hope that Nyanda’s threat of legal action inflicts some damage, but it won’t - this is an easy bluff for Vavi to call. Can you imagine Wim Trengove cross-examining Nyanda on his assets, on his business interests, on how he was able to parlay his position as commander-in-chief to comrade capitalist? We can barely contain ourselves at the thought. Even if Nyanda won legally, Vavi would emerge the victor.

Cosatu and Vavi, with the help of their affiliates, seem to have backed the ANC into a corner. Perhaps it’s more accurate to say the ANC has found its own corner, and backed into it itself. We look forward to the face-saving manoeuvre to come. And we’ll place heavy money and a ticket to the World Cup Final on it involving the words “media” and “speculation”.

But the picture of the ANC that has emerged from this whole sad affair is not an encouraging one. What remained of the party that actually managed to break the back of one of the worst regimes in the history of the world? These days, no one is raising hands to say anything. The leadership doesn't even have enough courage of conviction to publicly say what they stand for. Even today, they left it to Business Day's Karima Brown to publish the news of dropping attempts to charge Vavi, instead of coming out and saying it boldly.

What does the ANC stand for today, except for being a group of people in power? What has the party of Luthuli, Tambo and Mandela turned into?

http://www.thedailymaverick.co.za/article/2010-06-08-analysis-anc-drops-talk-of-charges-against-vavi-after-crashing-into-cosatu-wall

1.4 No real solidarity in alliance if nominal unity is under threat

Mzukisi Makatse, Daily Dispatch, 8 June 2010

THE proposed charging of the Congress of South African Trade Union’s secretary-general, Zwelinzima Vavi, exposes the fragile state of nominal unity in the ANC-SACP-Cosatu alliance.

The ANC national working committee’s possible disciplinary hearing against Vavi on the basis that he criticised President Jacob Zuma and his Cabinet (seemingly a cardinal sin), is absurd and a rude awakening for the left as to the real state of unity in the post-Polokwane alliance.

The left should really wake up to the fact that contrary to the claims of unity, actual unity in the alliance will never be achieved on the basis of concessions to fill certain Cabinet and other positions with left-leaning individuals.

Alliance summits and other bilaterals, important as these may be, are never enough to deal with deep-seated ideological and class differences in the alliance.

A long and difficult process to foster actual unity in the alliance must go beyond such meetings and focus on achieving tangible results on vexing political and policy questions.

This imminent disciplinary hearing also sends a strong message that unity in the alliance is not an automatic consequence following the victory of one group over the other in the leadership contest within the ANC.

In fact, the opposite is more likely, given the political and ideological fluidity immediately following such a strong leadership contest.

Further, the response by both Cosatu and the SACP that these are non-ideological actions of a small group that seeks to undermine the “unity” of the alliance achieved post-Polokwane, are actually misleading about the deep- seated ideological challenges at the centre of the divisions in the alliance.

It is common knowledge that the alliance is a higher plane for ideological contestation on various matters. For instance, at the core of the question about the political centre lies an ideological contest about the direction the country needs to take. This in itself makes the alliance a centre for occasional group divisions along basic ideological questions facing our movement.

Therefore, the claim by the left that the forces hell-bent on undermining the current nominal unity and proper functioning of the alliance are without ideological character would seem to be a false assumption. Such an assumption presupposes that Polokwane completely defeated the ideological current that sought to transform the ANC into a modern social democratic party that emphasises a significant role for the market forces in the South African economic policy trajectory and national development.

For me the distinguishing element between the pre-Polokwane ideological tendency and the post-Polokwane one in the ANC-led alliance is that the former sought to achieve their ideological objectives by advocating modernity and perhaps over-estimating the changed balance of forces in the post-Cold War 21st century; while the current proponents of the same ideological tendency are invoking outdated and conservative traditions, slogans and songs, with a strong variant of left adventurism mixed with narrow nationalism.

The populist calls for nationalisation of the mines, the claims of a communist take-over of the ANC and the dubul’ ibhulu song are but a few examples.

Admittedly, it was an objective and necessary consequence after Polokwane, for the alliance to, for a while, project nominal unity and cohesion as an intended departure from the fractured state of the alliance leading up to 2007 Polokwane conference and the consequent breakaway from the ANC of certain members of the defeated group.

However, this projection of nominal unity should never be assumed to be actual unity of the alliance. It is not practically possible to have immediate unity in such a polarised political environment, especially after years of strong divisions in the alliance.

Any projections of unity when only nominal unity is possible will only paralyse the alliance in its efforts to build lasting unity.

Furthermore, our political reality immediately after Polokwane consistently warned that nominal unity would be short-lived unless drastic measures were put in place to build actual unity.

There are a number of incidents that point to this. For example, the alleged Motlanthe-Nzimande debacle during the Mothlanthe presidency; the alleged SACP/Cosatu takeover of the ANC; the Julius Malema campaign to oust Gwede Mantashe as secretary-general of the ANC; the outburst by National Union of Metalworkers of South Africa secretary- general Irvin Jim about the left’s miscalculation by supporting a particular individual over policy direction at the ANC Polokwane conference, and, etc.

Now there is the ANC NWC’s possible charging of Vavi.

This can never augur well for preserving nominal unity in the alliance, not to mention actual unity. Surely it threatens the very survival of the alliance.

It is of urgent necessity therefore that all and sundry within the alliance work tirelessly to preserve even nominal unity whilst building actual unity.

There is a need to objectively interrogate those niggling political issues that make all sides of the political spectrum uncomfortable.

In that endeavour, the left will need to appreciate and objectively communicate the actual state of unity in the alliance whilst being vigilant against those advocating disunity under the guise of calls to unite.

Mzukisi Makatse is an ANC and Youth League member in the Centurion Central branch

http://www.dispatch.co.za/article.aspx?id=408326

2 Workers

2.1 Dis-Chem strike enters third week

Business Report, 8 June 2010

The strike by 2 000 Saccawu members at Dis-Chem Pharmacies entered its third week on Monday.

Since the beginning of the strike, the number of workers joining the industrial action had "steadily increased", the SA Commercial and Catering Allied Workers' Union claimed in a statement on Monday.

It further alleged "unprecedented attacks" on workers by management, mall managers, the police and private security companies.

Incidents apparently reported to Saccawu's head office included a manager assaulting strikers on the picket-line.

"Workers have laid criminal charges against the said manager whilst at the same demanding that management take disciplinary actions against the manager."

It alleged that workers at Dis-Chem's warehouse had been attacked and assaulted by a private security company.

"Workers were shot at with rubber bullets and four striking workers were injured. These actions are all in clear violation of the CCMA-imposed picket rules."

Saccawu had applied for the variation of the picket rules. The parties would meet at the CCMA on June 9 to deal with the matter.

The union called on the company to negotiate with it.

Saccawu intended to meet with unions at companies that supplied Dis-Chem with stock to discuss solidarity action.

On June 10 the union planned protest marches in Durban and Sandton.

Saccawu demands for its workers at Dis-Chem included a minimum wage of R3 500, a 15 percent across-the-board salary increase as well as a guaranteed 13th cheque.

Dis-Chem's human resources manager Johan Ochse told Sapa Saccawu was a minority union at the company.

Asked to comment on accusations of Dis-Chem's refusal to negotiate with the union, he said Saccawu had made its demands after annual salary increases had been finalised.

"Besides, all staff received a 13th cheque in December."

All stores were operating "as normal", but the warehouse had been "a bit of a problem".

"We are currently moving warehouses and there has been a total disregard of the picketing rules. We had to get a court order last week to stop violence and intimidation around the warehouse... but Saccawu is disregarding the order."

Ochse confirmed the strike was legal and that the "no work, no pay" principle applied.

He said Saccawu's membership at Dis-Chem amounted to around 1 400, but that only about 500 workers were on strike.

Ochse said he recalled an incident where strikers had attacked a Dis-Chem manager.

"He retaliated using pepper spray. A criminal case has been opened." – Sapa

http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=5503852

2.2 Unions seek CCMA help in Eskom labour dispute

Alistair Anderson, Business Day, 8 June 2010

UNIONS have organised a meeting with Eskom on Friday under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA) to try to end a wage dispute and to try resolve workers’ benefit concerns.

Solidarity, the National Union of Mineworkers (NUM) and the National Union of Metalworkers of SA (Numsa) said they thought the CCMA’s input would be useful.

Solidarity spokesman Jaco Kleynhans said yesterday: “We have been in negotiations with Eskom for far too long.

“We have wanted to get expertise from the CCMA for months.”

The unions have been demanding a general wage increase of 18%, while Eskom has been offering 5,5%. The unions have also been demanding a housing allowance, which has been on the negotiating table for more than three years.

Last month , a strike by NUM members was averted after one day when the utility obtained an interdict from the Labour Court, which ordered all unions to refrain from striking at Eskom as their members were essential service workers.

NUM spokesman Lesiba Seshoka warned that the interdict had not stopped some of his members from striking. He said yesterday that 3000 of Eskom’s 28000 workers had been on strike at Kusile power station since May 28. “All we need is for Eskom to come to the party. We have wanted a housing allowance for years and we want a decent wage .”

http://www.businessday.co.za/articles/Content.aspx?id=111178

2.3 Junior doctors may strike again over pay, conditions

Business Day, 8 June 2010

YOUNG doctors have threatened to “regroup, organise and co- ordinate” for another “firm action” against the occupation- specific dispensation, after a weekend conference in Limpopo.

“Junior doctors shall not fall prey to the government’s ‘divide and rule’ strategy: we shall not rest until all doctors in the country are fairly paid, work under excellent … conditions, (and) we all have a constant and reliable supply of drugs and equipment,” said Dr Mahlane Phalane, chairman of the Junior Doctors Association of SA.

It had not been decided whether they would embark on a strike similar to that in April last year, when they took to the streets over delays in implementing the occupation-specific dispensation, intended to increase salaries in line with experience and stop an exodus to the private sector.

Association members, rather than the leadership, would decide, Dr Phalane said. “If they are willing to die with their stethoscopes around their necks, then that is what we will do.” Saturday’s meeting near Lebowakgomo was the first in a series of provincial meetings to obtain a mandate.

Although young doctors rejected the government’s occupation-specific dispensation offer, made in the bargaining chamber in July last year, they suspended their strike amid dismissals, threats of disciplinary action, court interdicts compelling them to return to work, and condemnation of their action as detrimental to the poor.

At the time, Health Minister Aaron Motsoaledi told them the offer was “the best the country could manage under the circumstances”. The government started implementing it in July.

Dr Phalane said the problem was doctors believed they should have been able to negotiate an occupation-specific dispensation for doctors, and pharmacists should have been able to negotiate one for pharmacists.

However, the South African Medical Association (Sama), which represents 80% of doctors in the public sector, was not recognised in the chamber because it did not have enough members. As a result, doctors were now subject to a dispensation negotiated for all health workers by unions including the National Health and Allied Workers Union, the Health and Other Service Personnel Trade Union of SA, and the Public Servants Association of SA.

One consequence of this was that doctors in rural areas were paid the same as doctors in urban areas, which had led to an exodus of rural doctors, on whom junior doctors relied for support during internships, Dr Phalane said.

While parts of the dispensation to which doctors objected last year were being renegotiated, those who were members of Sama still had no say in the talks, he said.

On Saturday, doctors resolved to move out of the “unfavourable” bargaining chamber and take their fight for a minimum service agreement to the Constitutional Court, Dr Phalane said.

The Department of Health could not be reached immediately for comment. Sapa

http://www.businessday.co.za/articles/Content.aspx?id=111171

2.4 Union urges early closing for World Cup kick-off

AFP, 7 June 2010

South Africa's largest union federation called on bosses on Monday to allow workers to knock off at lunchtime on the day the World Cup kicks off so they can cheer on the national team.

The Confederation of South African Trade Unions (COSATU) urged employees to let their staff down tools at 1:00pm (1500 GMT) on Friday so they have plenty of time to take their seats as the hosts take on Mexico in the opening match.

"This is a once in a lifetime opportunity and workers should be allowed to be with their families to watch the opening game," COSATU's Cape Town branch said in a statement.

The federation, which is part of South Africa's ruling coalition, said it was "negotiating with employers to close at 13:00 hours", including about the possibility of making up the lost time at a later stage.

The match itself begins in Johannesburg at 4:00pm, preceded by a lavish opening ceremony with performances by the likes of soul singer R. Kelly and a choir from the neighbouring Soweto township.

Labour analysts had already predicted high levels of absenteeism during the month-long tournament, although the influx of tourists should more than offset any damage to the economy.

http://www.google.com/hostednews/afp/article/ALeqM5i90OFKpREXvGLAFuVBglNrIlBV3A

2.5 Cosatu requests early closures of factories for opening game

Alistair Anderson, Business Day, 8 June 2010

The Congress of South African Trade Unions (Cosatu) has requested factories in the Western Cape to close at 13:00 on Friday so that their members can watch the opening game of the Soccer World Cup.

Cosatu Western Cape Provincial Secretary, Tony Ehrenreich, told Business Day his branch would negotiate with employers tomorrow.

“We want our members to work two hours or so less so they can enjoy their right to watch our country at its biggest ever sporting event,” Mr Ehrenreich said.

He said the union would negotiate overtime so that no production was lost at the factories. He also said that he expected the call for factories to close early on Friday to spread throughout SA.

South Africa starts its World Cup campaign against Mexico at 16:00 on Friday, with the opening ceremony taking place from 14:00. Cosatu national spokesman, Patrick Craven said factories had told him the request was reasonable.

“The word so far is good and we expect to have many workers at home with their families supporting their team on Friday afternoon,” Mr Craven said.

http://www.businessday.co.za/articles/Content.aspx?id=111155

2.6 Strikers ‘don’t have right to burn trains’

Canaan Mdletshe, Sowetan, 8 June 2010

SOUTH African National Civic Organisation president Ruth Bhengu yesterday hit out at Satawu members for burning trains during their recent strike.

Satawu and Utata members went on a strike that brought rail transport to a standstill.

Speaking in Durban during the official opening of the R151million Moses Mabhida Station yesterday, Bhengu, who is also chairperson of Parliament’s portfolio committee on transport, said though they accepted that Satawu and Utata members had a right to strike, burning trains or any other mode of public transport was not acceptable.

“We cannot condone irresponsible behaviour such as burning trains,” she said. “It is essential to know that rights come with responsibilities. It cannot be correct for all of us to support you when you demand your rights yet you infringe on our rights to travel to our destinations by burning the trains.

“The state provides trains for commuters and if you burn them you are taking the rights of people away and that is not acceptable.”

Turning to the new train station Bhengu said the government had prioritised key areas for public transport. These were to reduce the cost of travelling and travelling time, provide safe transport and to establish reliable and efficiently scheduled transport.

“We know that in South Africa everything was designed along racial lines. It was not expected of a black person to board a plane, hence there was no transport to ferry blacks to airports. But now that is gradually changing,” she said.

http://www.sowetan.co.za/News/Article.aspx?id=1149651

3 South Africa

3.1 Union wants municipalities probed

IOL, 8 June 2010

A government task team must urgently investigate alleged corruption in two Free State municipalities, the South African Municipal Workers Union (Samwu) in the province said on Monday.

It also wanted the immediate suspension of municipal managers and other implicated officials at the Mangaung (Bloemfontein) and Metsimaholo (Sasolburg) local municipalities, Samwu provincial secretary Moses Miya said.

The union's central executive committee had decided to help with a national campaign against corruption in the Free State local government sector.

"We believe corruption is out of control and should be dealt with as a matter of urgency by the Minister of Co-operative Governance and Traditional Affairs (Sicelo Shiceka)," Miya said in a statement.

The task team should include Samwu and the Hawks.

"Samwu leadership in the province have experienced consistent victimisation of shop stewards and members for blowing the whistle on corruption," Miya alleged.

This was especially the case in Mangaung and Metsimaholo, where shop stewards had allegedly been unfairly suspended and the union interdicted from operating.

The union had during previous protest marches in Bloemfontein repeatedly called for Mangaung municipal manager Sandile Msibi's resignation. – Sapa

http://www.iol.co.za/index.php?set_id=1&click_id=6&art_id=nw20100607222810165C639638

3.2 Transnet invites private sector to run branch lines

Julius Baumann, Business Day, 8 June 2010

LOGISTICS group Transnet yesterday announced that it would make all 7300km of its branch railway lines available as concessions to private investors to operate over a fixed, long-term period.

The move is aimed at spurring investment in these often under- utilised lines.

Branch lines make up 35% of the 20953km of the South African rail network, of which only 3928km are operational at present.

“Declining volumes over years made some branch lines unviable for Transnet to operate. Many of these lines were built 100 to 150 years ago during a time when government subsidised railway services to remote areas,” said Transnet spokesman John Dludlu. “This is really a market- testing exercise to gauge the interest in operating these lines.”

Opening the branch lines to private businesses has been welcomed by farmers, who in the recent past could not rely on Transnet to move their produce to market.

“The agriculture sector most certainly welcomes the availability to take charge of their own logistics,” said John Purchase, CEO of the Agriculture Business Chamber. “Many agribusinesses have moved from rail to road because they cannot rely on Transnet.

“For example, the recent strike cost the industry R1bn in lost revenue. However, we need to reverse that trend and get back to rail.”

However, there is some scepticism as to the viability of operating the branch lines as many require huge investment while others were closed because they were not commercially viable. Transnet said each concessionaire would be required to make the necessary investment , maintain the lines to agreed standards, and operate railway services.

Railway services may be freight or passenger services or a combination. Transnet is assessing the extent to which it can lease rolling stock to concessionaires.

Allen Jorgensen, media and research officer at the Railroad Association of SA, said the conditions attached to the concessions had to be attractive enough to warrant the extensive capital spend needed to make the lines commercially viable. “In some cases, kilometres of track have been stolen and the operators would virtually have to build from scratch.”

Mr Jorgensen also questioned the viability of some lines that had to rely on Transnet’s main line services. “If your service cannot connect with the Transnet service then your business could collapse.”

He said a railway regulator to ensure that competition was fair was a vital precursor to entering such private-sector partnerships.

http://www.businessday.co.za/articles/Content.aspx?id=111165

3.3 Union to Oppose Transnet Rail Concession Plan

Bloomberg News, 7 June 2010

The South African Transport and Allied Workers' Union will oppose a plan by Transnet Ltd., the country's state-owned rail operator, to seek bidders to operate railway lines in the country.

The union wasn't consulted regarding the proposals, Satawu General Secretary Zenzo Mahlangu said by phone from Johannesburg today. Satawu "will not allow private companies to operate rail lines," he said.

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/06/07/bloomberg1376-L3N7N96SETC5-2.DTL#ixzz0qFOeepky

3.4 Provincial ANC youth league leaders might face axe today

Mayibongwe Maqhina, TimesLive, 7 June 2010

The national ANC Youth League leadership, unhappy with its Eastern Cape branch's failure to hold an elective conference at the weekend, could dissolve the provincial leadership today.

Insiders said yesterday that the national leadership was expected to dissolve the provincial leadership, and possibly install an interim task team today.

Asked whether the dissolution move would be discussed today at the ANC provincial offices in King William's Town, the national spokesman, Paseka Letsatsi, said: "Let's not pre-empt our engagement."

However, Letsatsi said the league's national leaders were unhappy that the province had failed to convene the conference.

"We can't have two meetings of the youth league postponed because of minor and technical problems," he said.

Letsatsi dismissed reports that the provincial leadership was dissolved at a meeting in East London on Sunday.

The league's national leaders are to meet the provincial executive committee members today to chart a way forward.

The provincial leaders are divided and factions are aligned to ANC Youth League president Julius Malema and his deputy, Andile Lungisa.

"We are to ask the national executive committee to consider the Eastern Cape situation.

"It will explain who will prepare for the conference," secretary-general Vuyiswa Tulelo said.

The two factions held separate meetings at the weekend after they did not agree on a conference venue between East London and Port Elizabeth.

Despite holding separate meetings, they both failed to achieve quorums required for the election of a new leadership.

As a result, the faction gathered in Port Elizabeth - led by outgoing chairman Mlibo Qoboshiyana - changed the status of its conference to a provincial general council.

The other faction, led by provincial secretary Ayanda Matiti, abandoned its effort to hold a meeting in East London when it too could not muster a quorum late on Sunday night.

Letsatsi said the decision to abandon the East London conference was due to the lack of the turnout required.

"At the time the credentials were presented there were 527 delegates. We were short of 96 delegates to make a quorum. We could not continue," he said.

Meanwhile, Tulelo said it would be up to the national working committee to make a recommendation to the NEC on dissolution of the provincial structure.

"Whether we dissolve them or not, we still owe it to the general membership of the youth league in the Eastern Cape [to give them] an opportunity to tell us what they think the problem is," she said.

Qoboshiyana could not be reached for comment.

Last month, the youth league postponed what promised to be a chaotic provincial conference in East London after late registrations, claims of ghost delegates and two bomb hoaxes.

http://www.timeslive.co.za/local/article492717.ece/Provincial-ANC-youth-league-leaders-might-face-axe-today

3.5 Zuma Has Yet to Fulfill Promises to South Africans

Celia W. Dugger, New York Times, 7 June 2010

SIYATHEMBA, South Africa — President Jacob Zuma, the son of a widowed maid, tried to reason with the rowdy crowd in this restive township. He had come to fix their broken public services, he assured them, but their angry heckling kept drowning him out.

Finally, like a glowering patriarch, he lectured and scolded them, threatening to leave. “This means you will live forever in poverty!” he exclaimed. “If we do not listen to each other, how can we fix anything?”

Suddenly, the rage of the throng dissipated. There was a chorus of apologies. A voice shouted, “Sorry, Baba!” Then a cry arose for the president to sing his trademark song from the anti-apartheid struggle, “Bring Me My Machine Gun.”

“You want it?” he asked.

“Yes!” they shouted. And like an aging entertainer obliging with a golden oldie, Mr. Zuma, 68, crooned and boogied onstage.

It was a moment that encapsulated both the promise and the unfulfilled potential of Mr. Zuma, who has raised the hopes of the dispossessed but not yet delivered the better life they are demanding. Despite persistent corruption charges and the taint of extramarital affairs, he is a political survivor who has risen to lead the continent’s powerhouse nation and will soon step onto the international stage as South Africa holds Africa’s first World Cup.

With his rumbling laugh and habit of dancing onstage, Mr. Zuma has a gift for connecting with the country’s impoverished black majority, who are impatient for the better life promised by the dawning of democratic rule 16 years ago.

“I’ve never seen a president in Africa in direct dialogue with his citizens like Jacob Zuma,” said Zakhele Maya, 26, an activist in Siyathemba who, like most in the township, is jobless.

But that connection has not quelled the discontent. After an earlier visit, last year, Mr. Zuma ordered the government to improve the township’s health and housing services, yet frustrations continued to rise. In February, residents burned down the library. The books are now charred scraps, the library a pile of blackened rubble.

A year into his five-year term, Mr. Zuma recently signed performance contracts with his ministers, setting out specific results for them to achieve. But analysts are urging action, not aspirations, on South Africa’s core challenges: a failing education system, staggering levels of joblessness and the widening chasm between rich and poor. There is already open speculation about whether his party, the African National Congress, in power since the end of apartheid, will pick him for a second term.

“By 2013, the questions arise: Who will govern beyond 2014?” asked Trevor Manuel, who heads the National Planning Commission in Mr. Zuma’s office and was finance minister for the previous 13 years. “And the intense period has to be 2011, 2012, into 2013. Those are the middle years of the term of government, and I think the foundation is now well laid. Now you’ve got to drive the change.”

Mr. Zuma’s highly personal, consensus-building style has helped him lead a sweeping new attack on AIDS after almost a decade of failed leadership under his predecessor, Thabo Mbeki. But even some in his party say that tackling the nation’s deep economic problems will probably require angering allies who put him in office, especially Cosatu — the powerful trade union federation that is part of the governing alliance — and the A.N.C.’s youth wing. It is led by the incendiary Julius Malema, 29, regarded by many here as a demagogue who plays on racial antagonisms and who was recently sent to anger management classes by the party.

The dry kindling of resentment is here to be ignited. The ranks of the jobless have grown by more than a million in the past year and a half, and South Africa, population 49 million, already had among the highest rates of chronic unemployment in the world. More than a third of the work force, including those too discouraged to seek work, is jobless. Studies have found that most of the unemployed have never held a job.

Mr. Zuma announced in February that proposals would be put forward to subsidize the wages of inexperienced workers, to help them get a foot in the door. But Cosatu, the Congress of South African Trade Unions, which represents those who already have jobs, opposes the idea — and debate within the government continues.

Another point of tension is education. Last year, Mr. Zuma said teachers and principals — whose union is also part of Cosatu — must be held accountable for whether they show up and do their jobs. In an interview, Mr. Zuma reiterated the need for such a step and said it would be taken by the end of his second year in office.

“There’s no teacher who’s going to hide behind the school,” he said.

But critics question whether Mr. Zuma has the support to follow through on these difficult decisions, the vision to address the country’s daunting challenges or the standing to root out corruption. Worries deepened when it surfaced that Mr. Zuma, who already had three wives and a fiancée, had fathered a child, his 20th, out of wedlock with the daughter of a family friend.

“The biggest danger we face as a country is the use of office for personal gain, and it is becoming so, so normal, and nobody’s arresting that,” said Mondli Makhanya, a newspaper editor whose reporter broke the story about Mr. Zuma’s child in The Sunday Times. “He lacks the leadership strength at this point to turn against people who supported him, and he lacks the moral authority to say, ‘No, you can’t do that.’ ”

More fundamentally, making choices that would divide the governing alliance goes against Mr. Zuma’s instincts as an African traditionalist who seeks to settle conflicts by gathering his coalition under a metaphoric marula tree to talk for days or weeks until they reach a consensus, said Allister Sparks, a veteran commentator here. “Action dies in the process of eternal, everlasting debate,” Mr. Sparks said.

Mr. Manuel, the former finance minister, says the president’s style is to keep everyone in the tent, recalling Mr. Zuma’s efforts to mediate Burundi’s complex civil war. “He’d sit in Dar es Salaam for tens of days, and he has the most remarkable patience to do that kind of thing,” Mr. Manuel said.

“So perhaps he needs the support of ministers who are going to push and shove and try to get things done.” On issues including teacher accountability, Mr. Manuel said, “Instinctively, I would take a much harder line on some of these things.”

Mr. Zuma’s political resilience should not be underestimated. After a decade as a political prisoner, he rose to lead the A.N.C.’s underground intelligence operation during the anti-apartheid struggle. As president, he has filled important police and prosecutorial posts with loyalists, making it unlikely he will face further corruption charges.

In an interview, he told a story that suggested the roots of the cool calculation beneath his warm, amiable style. “If you are angry, you can’t think properly, and the other boys will really beat you up,” he said of his days learning stick fighting with other Zulu boys. “You’ve got to be sober so that you can be able to defend yourself and also hit the other boy.”

As the debate over Mr. Zuma swirls, the man himself has fun on the hustings. He recently basked in the adulation of a vast crowd at a township stadium in the Free State for a World Cup prayer service sponsored by the A.N.C. The event was an ecstatic, incantatory fusion of sports, religion and politics that would not have seemed out of place in Texas.

Thousands of churchwomen ululated for him and the South African soccer team, Bafana Bafana. “Long live Jacob Zuma!” one cried. “Long live!” the crowd responded. A small smile flickered across Mr. Zuma’s face as the premier of the Free State said: “We are not talking succession. We are just saying the president should be president again and again and again!”

White dignitaries mounted the stage. A blanket imprinted with the South African flag was laid on the floor; Mr. Zuma knelt on it as preachers placed their hands on his head. People gathered around and raised their hands to God, a tableau of racial harmony.

“Let us receive our visitors warmly with love,” Mr. Zuma said of the coming games. “Let us embrace them.” And with a mischievous glint, he added, “Those who at times are not good, let them for just four weeks be good.”

http://www.nytimes.com/2010/06/08/world/africa/08safrica.html?pagewanted=2

4 International

4.1 G20: Tipping the World Economy Back Into Recession

ITUC, 7 June 2010

Global Unions have attacked the outcome of the G20 Finance Ministers and Central Bank Governors meeting in Busan, Korea, on 5 June. “The G20 Finance Ministers said they were meeting at a ‘critical juncture’ to secure global recovery and address economic challenges and risks” said ITUC General Secretary Guy Ryder. “They have failed on both counts. Their decisions risk undermining recovery, whilst they have failed to move forward the agenda for re-regulating financial markets.”

The message on the economic recovery represents a shift from the Finance Ministers’ April meeting where they cautioned against premature withdrawal of stimulus measures. In Busan, the focus was on the importance of “sustainable public finances” and the need for many countries to “accelerate the pace of consolidation”. “The Finance Ministers’ conclusions do not add up” said TUAC General Secretary John Evans. “Forecasts suggest that the global economy is still on life-support from government stimulus, yet they are now calling for a shift from supporting jobs to cutting deficits that could push the global economy back into recession.”

On financial reform, the Busan meeting failed to decide on what to do next. The Ministers could not even agree on principles for international taxation of banks and other financial institutions as called for by the IMF, much less the adoption of a financial transactions tax (FTT). Nor did they find minimum common ground for strengthening the Basel II Framework regulating bank loans. The communiqué simply re-states past commitments made by the G20, the FSB and its members.

“The Busan meeting constitutes a setback for the G20” said Guy Ryder. “In the meantime, it is working families who again and again are paying, and will continue to pay, for the consequences of greed and irresponsible risk-taking by bankers and financial speculators. The need for further action on jobs and re-regulating finance is the message the global labour movement will take to the G20 Leaders meeting in Toronto at the end of the month.”

http://www.scoop.co.nz/stories/WO1006/S00151.htm

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