Media Monitor 28 October 2009
Patrick Craven
COSATU
Media Monitor
Wednesday 28 October 2009
Contents
1.1 Exxaro: Unions consult members
2.1 'Sources' bent on tainting Cosatu image
2.2 Cosatu’s Vavi rips into Blade Nzimande’s capitalist-style greed
2.3 It's not a jump to the Left
2.4 Odd to shut Manuel out of economic planning
2.5 Fury over the cost of Zuma’s seven new ministries - R600m
3.1 SA civil society welcomes Gordhan budget
3.2 Union, Cope praise Gordhan
3.3 ANC welcomes Gordhan's mini-budget
3.4 Gordhan’s Budget ‘a fine juggling act
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1 Workplace
1.1 Exxaro:
Unions consult members
Kea’ Modimoeng, Times, 27 October 2009
The National Union of Mineworkers and Solidarity are expected to report back to Exxaro Coal the outcome of the latest wage consultations with their members.
The unions are demanding a 12% wage hike for higher category employees and 15% for lower categories, while the company has offered 9% and 11% respectively.
Wage negotiations are under way for Exxaro Coal's Tshikondeni, Grootegeluk and Leeuwpan mines outside Musina, Lephalale and Delmas respectively, as well as the Inyanda and Glendouglas operations.
The unions are now consulting members for way a forward and will give feedback tomorrow.
NUM spokesman Lesiba Seshoka said if members rejected the offer, the union would wait to see if Exxaro Coal hiked its offer.
"If not, we will request a certificate of non-resolution and engage in mass action," he said.
Solidarity said it was "positive" that a wage agreement could possibly be reached.
Spokesman Jaco Kleynhans said: "Negotiations at Exxaro Coal have been extremely drawn out and at one point a strike was threatening to be the only way out.
"However, Solidarity is now positive that an agreement is, in fact, within reach."
Exxaro wage negotiations started in July and a dispute was declared at the end of September when the matter was referred to the Commission for Conciliation, Mediation and Arbitration. Negotiations have since been mediated by a commissioner.
The NUM represents close to 3000 employees at these operations, while Solidarity has nearly 1400 members.
Exxaro Coal and the NUM reached an agreement last week on the equalisation of wages between Exxaro Coal employees, who negotiate through the Chamber of Mines, and those from the rest of the operations.
http://www.timeslive.co.za/business/article169444.ece
2 South Africa
2.1 'Sources' bent on tainting Cosatu image
Mluleki Mntungwa, COSATU Communications Officer, 28 October 2009
A lie often repeated can sometimes
be construed as the truth. This is the trend Cosatu has observed in the media
and the opposition parties over the past few days regarding the labour broking
public hearings in Ekurhuleni municipality council chamber in Germiston.
The same lies were repeated in Terry Bell's column in Business Report - Inside
Labour - ("Gang mentality drives broker debate", October 16).
The column was littered with inaccuracies and distortions. But Bell can be
forgiven because he was not present at the hearings. All he could rely on was
thumb suck and hearsay from incredible sources.
The first distortion and inaccuracy is the allegation by Bell that the only
view that was allowed during the hearings was the demand to ban labour brokers.
To illustrate this point, Cosatu was the first union federation to make
presentations on behalf of organised labour, which obviously called for the
total ban of labour broking. Hot on the heels of Cosatu was Thami Zulu, from a
union affiliated to National Congress of Trade Unions, who supported Cosatu's
call.
Following Zulu was a gentleman
from the Unemployed Party, who proposed that there should not be a total ban on
labour broking. A lady representing labour brokers also made a presentation
calling for tougher regulations on labour broking rather than a total ban.
Based on the facts provided above, it is clear that Bell's assertion that the
only view allowed during the hearings was the total ban on labour broking is
misleading.
Another distortion in Bell's column is that people who attended the hearings
were Cosatu members.
I cannot recall any Cosatu member, clad in Cosatu regalia, blowing a vuvuzela
and pelting anyone who presented an alternative view with plastic bottles.
Therefore, Cosatu distances itself from any alleged unbecoming behaviour
displayed by the public during the hearings. The leadership had no control over
them.
http://www.busrep.co.za/index.php?fSectionId=553&fArticleId=5220454
2.2 Cosatu’s Vavi rips into Blade
Nzimande’s capitalist-style greed
Ray Hartley, Times, 28 October 2009
WOW. Cosatu’s Zwelinzima Vavi has fired a broadside at
government officials who enrich themselves with the perks of office.
In a speech prepared for a celebration of 50 years of the
SACP’s African Communist, he said: “Measures are being taken to
curb corruption, though far more has to be done to rid the country, and in
particular the public service, of this culture of self-enrichment.”
Then he said: “Even among some of our own cadres the
view that those in public office have the right to R1-million cars and weeks in
top five-star hotels has become deeply ingrained, and it has to be fought with
every weapon at our disposal.”
Among those who thinks he has a right to the “obscene
perk” of a R1 million car is the Higher Education Minister, Blade
Nzimande, one of the SACP’s top officials.
“We will never curb the greed of the capitalists if
our own leaders follow the same path and adopt their greedy morality of
‘me first’.”
So far only silence from Nzimande. Perhaps it’s hard to hear the rabble from the sound-proof interior of your limo …
2.3 It's not a
jump to the Left
S'thembiso Msomi, Times, 27 October 2009
Some of the ANC's partners fear that Zuma is 'playing' them.
There are plenty of theories about how President Jacob Zuma manages - or fails to manage - his complicated relationship with his temperamental alliance partners, Cosatu and the SA Communist Party.
One school of thought - which has traditionally included opposition parties on the right of the ANC and mainstream political commentators - is that the ruling party and, by extension, the government, have been "infiltrated" and taken over by the communist Left.
Unsurprisingly, this school is gaining support from the ruling party's own ranks - especially among those leaders who are uneasy about Zuma's close ties to Cosatu and the SACP.
A number of developments in recent weeks fuelled the belief that Zuma - an SACP member for most of his time in exile who let his membership lapse in 1989 - has finally made the jump back to the Left.
These included:
- His decision to "reconfigure" the Cabinet's cluster system and leave out his national planning commission minister, Trevor Manuel - a perennial foe of the left - from the powerful economic cluster which is responsible for driving the state's spending plans;
- His announcement that Economic Development Minister Ebrahim Patel - an old Cosatu hand - is the Cabinet member responsible for economic policy development. Initially, it was thought that Manuel would play this role but loud protestations from Cosatu seem to have swayed the president;
- The resignation of the government policy guru - and for many years the ANC's chief strategist - Joel Netshitenzhe from his post in the Presidency. Netshitenzhe's imminent departure from the Union Buildings is interpreted by many - including his former comrade, Smuts Ngonyama, who is now with the Congress of the People - as evidence that the Left has finally seized control of the state; and
- The role the president allegedly played, in his capacity as ANC leader in "swaying" the vote at the highly contested Eastern Cape conference in favour of a faction led by SACP treasurer Phumulo Masualle.
However, in contrast to this school of thought, there is the view that Cosatu and the SACP are the ones being "played" - and that their strategic objective of leading South Africa to a socialist paradise will never be attained while they are still attached to the "pro-capitalist" ANC and its socially conservative president.
According to this school of thought, all the talk about the Zuma-led post-Polokwane ANC and the government marching to a Left tune is just that - talk.
Proponents of this theory, too, point to recent events for their evidence.
Take the departure of Tito Mboweni from the Reserve Bank. Whereas Cosatu might see this as a victory after its affiliate, the National Union of Metalworkers of SA, led a spirited campaign to have the governor removed, Zuma merely replaced Mboweni with Gill Marcus, whose economic views cannot - by any stretch of imagination - be said to be "radical" or "Leftist".
Cosatu and the SACP had also made much noise, ahead of the election, about the "inappropriateness" of Manuel continuing as finance minister in a Zuma government.
And what did Zuma do? He removed Manuel from the Treasury but replaced him with Pravin Gordhan who - despite his prominent SACP membership in the early years of the post-bannings period - is known to espouse mainstream views.
Instead of sending Manuel to the political wilderness like many of the former ministers with close ties to former president Thabo Mbeki, Zuma gave him the powerful post of a minister in the Presidency. Theoretically, this means that Manuel is one of Zuma's closest confidantes in the government.
And were it not for Cosatu's vocal opposition to the green paper on the national planning commission, Manuel would have gotten away with even more.
Zuma might have left Manuel out of the economic sectors and employment cluster, but he did not make Patel its leading minister. Gugile Nkwinti, the relatively junior rural development and land reform minister, chairs the economic cluster.
The reality is that, even though Cosatu and the SACP played a vanguard role in the struggle to have Zuma as president of both the ANC and country, the two organisations were not strong enough to do it all on their own.
Hence, Zuma had to bring together a broad front that included people who are opposed to the SACP's and Cosatu's socialist agenda.
Steeped in the ANC traditions learned from successful past presidents such as Albert Luthuli and Oliver Tambo, Zuma believes that now that he is president, his success still lies in having these competing groups seeing him as the rallying point.
The Left might be celebrating Netshitenzhe's departure from the Presidency, but don't be surprised if Zuma persuades him to take up another state-related post.
The downside of Zuma's approach, however, is that it can lead to dithering at government policy level as he fails to take firm decisions in fear of offending any of his allies.
But, to paraphrase Mark Twain, the reports of Zuma's jump to the Left are a bit exaggerated.
http://www.timeslive.co.za/opinion/article169490.ece
2.4 Odd to shut Manuel out of
economic planning
Aubrey Matshiqi, Business Day, 28 October 2009
IF THERE is a drought in the country and the Congress of South African Trade Unions (Cosatu) and the South African Communist Party (SACP) express a wish for rain, should we say there is a shift to the left when it starts raining? In other words, when policy changes occur and they coincide with the policy desires of the left, should we reduce these changes to a “shift to the left”, even when they are in concert with the wishes of constituencies other than the left?
Are all policy changes that are consistent with the desires of the left a “shift to the left”?
It seems to me that paranoia about the left, and a refusal by supporters of the left to be critical of President Jacob Zuma’s administration, will have us chasing shadows until the next general election in 2014. Some of those who will have us believe the country is moving from the right (of the SACP and Cosatu, also known as the centre) to the left (of the African National Congress and those who worship market fundamentalism) are not positing this view out of ignorance.
They need the left as a scarecrow in order to deal with the credibility crisis of their god — the omniscient market. Since the global economic crisis was caused by rampant market fundamentalism and the thoughtless propitiation of the god of profit by institutions and individuals alike, it is imperative that worshippers thwart the return of the state and preserve what French President Nicolas Sarkozy calls Anglo-Saxon capitalism.
These worshippers want to have their market cake and eat it. After destroying the lives of millions all over the world through their policies and greed, and after they were bailed out by their victims — and will this Christmas be getting bonuses courtesy of the taxpayer — ideology is still more important than justice for those who lost jobs and their homes because of market fundamentalism and the ineptitude of international ratings agencies.
Some will say I am being too harsh on the South African species because we did not go through the financial crisis of Europe and the US. All I am saying is that members of this species, wherever you find them in the world, worship the same god — the market — irrespective of the effect on the lives of those who are forced to eke out a living on the periphery of “sound economic indicators”.
These people — the ones who did not share in the pleasures of economic growth but are now sharing the pain of the recession — need an interventionist state that will shield them from the ravages of market fundamentalism. This, however and ironically, cannot happen without the markets. An effective interventionist state and healthy markets must be part of SA’s developmental trajectory and, yes, long- term planning is absolutely essential.
This does not mean that ideological battles will not be part of the trajectory since the maximisation of interests by different social and economic forces will, most probably, always be with us.
The answer does not lie in obsessing narrowly about fictional shifts to either the left or right. The answer lies in appreciating that the current global economic crisis demands that we do things differently. It demands that those who sacrificed the lives of millions on the alter of market fundamentalism admit that their monster is not the only solution.
They must accept that the state has a wider shareholder base, whose interests must be served through greater levels of its participation in economic planning and development. Only those who are willfully blind refuse to accept that market forces can no longer be left to their own devices.
If this is the kind of thinking that is behind Zuma’s restructuring of government and the re-engineering of core functions, then he has my full support.
What I will not support is the kind of nonsensical balancing act that made him exclude Trevor Manuel from the economic planning cluster.
The exclusion of a cabinet minister who is in charge of state-wide planning from the economic planning cluster is not only bizarre but suggests that the president does not know what he is doing. This, Mr President, looks like a shift to nowhere.
Matshiqi is a senior research associate at the Centre for Policy Studies.
http://www.businessday.co.za/articles/Content.aspx?id=85219
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Sowetan, 28 October 2009Finance Minister Pravin Gordhan’s revelation that the newly established ministries would cost just under R600 million this year has created a political furore. Presenting his medium- term Budget policy statement yesterday, Gordhan revealed that R589,1million would be spent on establishing new departments and the appointment of new ministers and deputy ministers. Zuma added eight more ministries to former president Thabo Mbeki’s previous cabinet. DA leader Helen Zille yesterday said the appointment of the new ministers was not in the interest of service delivery but aimed at dealing with ANC’s internal divisions. Zille said the quoted figure for the new ministries was an indication that the whole cabinet could cost taxpayers “at least a billion, if not more”. “President Zuma had to expand his cabinet to 62 members – including deputies – to balance all the warring factions and interest groups in the ANC. Dealing with the ANC’s internal problems is, once again, costing taxpayers hundreds of millions of rand,” Zille said. IFP MP Koos van der Merwe said there had been no indication that the expanded cabinet would improve service delivery. “With at least two service delivery protests each week this year, there is abundant proof that the expansion of the cabinet has not improved the pace of service delivery,” he said. Cope spokesperson Nick Koornhof said Zuma’s expanded cabinet was costing taxpayers “too much”. “We think half a billion rands is too much. If one can get the necessary output from these departments, it would be nice but we maintain it is unacceptable. “We have the second biggest cabinet in the world after Pakistan.” However, Cosatu spokesperson Patrick Craven said the federation was confident the new departments would justify the money spent on their establishment. “Cosatu fully supports the new departments and we are confident they will justify the money spent on them by improving the efficiency of government and meeting the (election) manifesto commitments.” United Democratic Movement leader Bantu Holomisa described the figure as “moderate”. Presenting his MTBPS, Gordhan revealed that funds were needed to provide offices and housing for the new ministers and deputy ministers. Ebrahim Patel’s Economic Development Department will get R29million to cover its operational expenditure and employees’ salaries. Other additional costs include R4,3million for the Department of Tourism to foot its salary bill and the running of the office of the deputy minister; and R8million for the Department of Higher Education and Training headed by Blade Nzimande. The money will be used to cover the operational costs of the new ministry. The Department of Mineral Resources will get R10million more than planned to cover similar expenses. The departments of Human Settlements, Transport, Water Affairs, and Public Service and Administration will each get an additional R3million to pay for the offices of their deputy ministers. The MTBPS is an adjustment to the three-year budget that the Ministry of Finance makes before introducing the next budget. In this instance, the government had to make the adjustment to cover for the new ministries added to the previous government. http://www.sowetan.co.za/News/Article.aspx?id=1082514
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3 MTBPS
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3.1 SA civil society welcomes Gordhan budget
SABC, 28 October 2009
South
African civil society today welcomed Finance Minister Pravin Gordhan's emphasis
on the creation of decent work, health, education, rural development and the
fight against crime. "We welcome... Gordhan's bold commitment that these
priorities will not be compromised, even in the context of the economic
crisis," the People's Budget Campaign said in a statement, reacting to the
Medium-Term Budget Policy Statement.
The campaign was made up of the Congress of South African Trade Unions, SA
Council of Churches and SA Non-Governmental Organisation Coalition. It welcomed
the minister's acknowledgement that in the context of declining revenue due to
the economic crisis, overall public-sector borrowing would be increased to
11.8% of the gross domestic product.
However, the PBC raised concerns about the "continued failure" of
medium-term resource allocation to significantly reduce income inequality,
improve service delivery and resource allocation. It welcomed the minister's
statement that the government must ensure monetary policy took employment and
growth into consideration, and not simply inflation. It was however critical of
inflation targeting, which it claimed impacted negatively on poorer households
and small businesses. It welcomed Gordhan's invitation to a public debate on
the matter.
The PBC expressed reservations on the "continued waste" of public
funds to bail out mismanaged public entities, such as the South African
Broadcasting Corporation. "The resources wasted in supporting mismanaged
public entities could be used in supporting Eskom's recapitalisation programme
and save poor consumers from high electricity tariffs." It
"fully" supported moves to extend child support grants to
18-year-olds, but complained that the minister's proposals fell short of
extending social grants to all unemployed South Africans. - Sapa
3.2 Union, Cope
praise Gordhan
Times, 28 October 2009
The National Education Health and Allied Workers Union (Nehawu) has welcomed Finance Minister Pravin Gordhan's announcement of a commitment to create millions of jobs over the next five years, while the Congress of the People said it was very pleased with the consistency reflected in the presentation.
The two were reacting to Gordhan's Medium Term Budget Policy Statement.
"We welcome the commitment to create 4.5 million job opportunities over the next five years. We are happy with the minister's commits to 'doing things and thinking differently' in the face of the economic crisis ravaging our people," Nehawu said in a statement today.
Cope issued it's own statement saying: "The Minister of Finance has stood up and provided the leadership that COPE has expected of him. It is clear that the treasury is still in control and that they have resisted taking a populist turn".
COPE said it also welcomed the Government's task team report to effect savings, but thought that this report should have been released earlier. "The review of the ministerial handbook is long overdue, promptimg one to intuit that ministers are going on a spending spree to avoid any cuts that may be proposed in a newly revised handbook".
Howver, both parties had some concerns. Nehawu said it was concerned about the lack of detail on the proposed National Health Insurance (NHI) scheme. "The minister announces that public-private partnerships in the health sector will be stepped up without giving any clarity as to what he is talking about. We believe that this mention of public-private partnership in the face of despicable profiteering in the private health industry can only give confidence to those who are opposed to the transformation of the health system and the introduction of theNHI."
Cope's concern was that there was not enough of a stimulus package to assist South Africa's recovery and that it might even take longer than estimated by the minister. "By being over optimistic we create a false perception that it is okay to carry on spending, which will certainly guarantee tax increases in future. This Medium Term Budget Policy Statement has restored confidence about the role of the Treasury and it's clear that the Minister of Finance will continue on the consistent road introduced by his predecessor. This approach, if adhered to, will restore business confidence and will assist with our economic recovery".
http://www.timeslive.co.za/news/local/article169412.ece
3.3 ANC welcomes Gordhan's mini-budget
Jackson Mthembu, ANC Spokesperson, 27 October 2009
The African National Congress (ANC) welcomes the Medium Term Budget Policy Statement by the Finance Minister, Pravin Gordhan, tabled today, the 27th October 2009 in Parliament (see speech).
The Minister's MTBPS clearly articulates the commitment of our government to the key priority areas, as pronounced by the ruling party. The priority areas are; the creation of decent work and sustainable livelihoods; enhancing the quality of education; improving health outcomes; fighting crime and corruption; rural development, including land reform and food production security. The MTBP policy statement has not canned job creation programme as articulated in the ANC's elections manifesto of 2009.
We also welcome the heightened commitment by our government to ensure that proper planning at all levels is implemented to ensure that government execute the ANC key priority programmes.
Despite the worldwide economic downturn that led to less collection of tax as had been anticipated, our government remains on course.
The recession offered the country a cause for sombre reflection on the need to do the right things to get our country back on track, including cancelling non essentials to essentials as directed by the ANC key priority areas. We are impressed with the government looking at carefully borrowing to fund government expenditure, also impressive is the emphasis on prudent spending and accountability by all public servants and public representatives at all levels of our system of government.
Whereas in other parts of the world spending is being cut and projects cancelled, we are able to continue our investment plans, because we entered the economic downturn with a budget surplus and a healthy fiscal position.
Whereas the response in other countries has been dominated by financial transfers to banks and other business, our spending growth is strongly driven by real physical investment in road and rail construction, new power stations, housing, water and sanitation systems, as well as the construction of the ten magnificent football stadiums which will be ready to welcome the world to the FIFA World cup next year.
We have a job to do and we are getting on with it.
http://www.politicsweb.co.za/politicsweb/view/politicsweb/en/page71654?oid=148613&sn=Detail
3.4 Gordhan’s Budget ‘a fine juggling act
Derrick Spies, Daily Dispatch, 28 October 2009
FINANCE Minister Pravin Gordhan played a fine juggling act yesterday between social spending and growing an economy battered by global recession.
In his first policy statement yesterday as Finance Minister, Gordhan elaborated on how government intended delivering on election promises while taking a pragmatic stance on growing the economy .
He was delivering his maiden Medium Term Budget Policy Statement (MTBPS) to the National Assembly in Cape Town.
Gordhan balanced spending in five priority areas with the need to recover revenue from cash- strapped South Africans, and reducing the country’s debt.
The five areas were job creation, education, health, rural development and fighting crime and corruption. These were the five areas highlighted in the ANC’s election manifesto.
Gordhan cautioned that the global recession’s effect on the local economy had to be dealt with. A major effect was that tax revenue had dropped dramatically, and was now expected to be R70billion less than budgeted for in February.
This meant government would have to borrow more, with the fiscal deficit extending to 7.6percent of gross domestic product (GDP).
“Taken together with the financing requirements of Eskom, other State-owned enterprises and municipalities, the overall public sector borrowing requirement this fiscal year will amount to R285bn ,” he said.
Gordhan did indicate, however, that the deficit was unsustainable at current levels and even spoke about the need for new taxes to improve the fiscal position.
“As the economy recovers over the next few years, government will act to reduce borrowing gradually ,” he said.
“As the economy recovers tax revenues will rise automatically. However, this will not be sufficient to reduce the deficit to sustainable levels.
“Other means of increasing revenue, such as broadening the tax base, improving tax compliance and introducing new taxes (such as environmental levies) may have to be considered.”
Local economists and consultants generally applauded Gordhan’s plans.
“It was a very balanced Budget, but I see many of the policy reforms, such as relaxed exchange controls, impacting more on large to medium businesses, with very little benefit for small business,” said independent consultant Guy Rich of GMR Strategic Management.
Rich was also concerned that heavy reliance on the public sector may translate into the “government essentially subsidising the economy”.
Economist Roshan Makan, of Realbridge Consulting, said Gordhan had performed a “fine juggling act” with the Budget.
“There has been talk of the Budget taking a leftist approach, but this has not been the case, with Gordhan taking a much more pragmatic view,” he said.
Makan said despite this, Gordhan had still been able to highlight key deliverables such as job creation, health and rural development, which would benefit the poor and could tie into a populist approach.
Economist Mike Schussler described Gordhan’s speech as “realistic”, but he also raised some concerns. “I am concerned about economic affairs getting less money and the size of government expenditure, but overall we got the support of government and government’s spend is spread evenly.”
Schussler said he was particularly pleased about the extra infrastructure spend, but said the Budget deficit was “a huge problem”.
The Federation of Unions of SA (Fedusa) were also, for the most part, in favour of Gordhan’s Budget, saying it was “sustainable” and “balanced”.
Fedusa general secretary Dennis George said, however, that Fedusa did not support the proposed R200m set aside for the SABC. “We do not agree that such a huge sum of money be allocated to the SABC that has not been able to utilise their funds sufficiently in the past.”
http://www.dispatch.co.za/article.aspx?id=355435
