[COSATU Daily News] COSATU Media Monitor, 17 May 2010

Talks between striking South African transport workers and logistics group Transnet have failed to end a dispute, threatening to widen action that has crippled the country's rail and port operations.

The strike, in its second week, has hit exports of metals, fruit and wine to customers in Europe and Asia after nearly two-thirds of Transnet's 54,000-strong workforce joined in.

"The Transnet strike is set to intensify with no resolution in sight. Management effectively walked away from any negotiated settlement (last night) after stating an unwillingness to budge on any item of money substance," the Satawu and Utatu unions said in a statement on Monday.

The two unions also began a strike at South Africa's Passenger Rail Agency (Prasa) on Monday, halting all commuter rail operations and affecting millions of passengers.

The strikes are the latest protests in the country ahead of next month's soccer World Cup, which is being held in Africa for the first time. There are concerns that the strike could affect imports of equipment for the event.

The South African Transport and Allied Workers Union (Satawu) and the United Transport and Allied Trade Union (Utatu) represent some 85 percent of Transnet's staff.

The unions have been in mediated talks with Transnet over the weekend. The unions said they had lowered their wage rise request to 13 percent from 15 percent, closer to Transnet's offer of 11 percent, but still no agreement could be reached.

Analysts and the central bank have criticised unions, saying that pay rises well above the 5.1 percent inflation rate would slow South Africa's economic recovery. The lowest paid worker at Transnet earns $470 a month, a union official said.

"Our members will remain steadfast in the withholding of their labour until a settlement is reached," the unions said.

Anglo American Plc's iron ore unit in South Africa declared a force majeure on shipments last week, joining other global metal exporters such as Xstrata, which said it could not supply ferrochrome to its customers.

The unions said 60 percent of Transnet's port, rail and fuel operations were disrupted, with no imported goods being offloaded.

Transnet does not operate passenger services and does not transport much coal to power plants, however a prolonged strike may hit imports, fuel supplies and exports of iron ore and coal.

The impact on coal and iron ore exports has been limited due to built-up stocks at ports, but the firms have said they would start feeling the crunch if the strike goes beyond this week. Miners said they were running out of storage space and would need to cut production if they cannot ship products to ports.

Producers of fruit said they were already running out of storage for produce they could not ship and wine makers said exports had stopped.

The unions called on other trade union federations to escalate their support for the strike.

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1.2 Commuters stranded as rail strike kicks off

By Beauregard Tromp and Gill Gifford, IOL, 17 May 2010

Trains across the country came to a standstill as 11th hour talks between unions and employers failed to yield results.

In excess of two million passengers were left stranded this morning as the first day of metrorail strike action kicked off.

The South African Transport and Allied Workers Union (Satawu) and United Transport and Allied Trade Union are demanding a 16% wage increase with employer, the Passenger Rail Agency of South Africa staying firm with their 5% offer.

"There was an off-the-record meeting yesterday where we failed to come to agreement and we decided on the strike," said Satawu negotiator Robert Mashego. All three parties did agree to continue talks, under the auspices of the CCMA, at 2pm on Monday. Meanwhile, the violent and crippling Transnet strike has continued.

"SATAWU, Utatu and Transnet senior management met over the weekend and we have moved from 16% to 13%. But the company remained firm at 11% and said they had reached the end of their mandate," said SATAWU negotiator Robert Mashego.

The Passenger Rail Agency of SA (Prasa) - parent company of Metrorail and Shosholoza Meyl - said the complete shutdown was a strategy to "protect customers and employees, and protect the assets of Prasa".

The shutdown will cause massive inconvenience for up to 2 million passengers a day who use Metrorail in Gauteng, the Western Cape, KwaZulu-Natal and Eastern Cape.

On Sunday, Prasa said all ticket offices would be closed during the strike. Also, Metrorail and Shosholoza Meyl would not be offering alternative transportation while the strike lasted.

In the past week, more than half of Transnet's staff embarked on a protected strike, in which the "no work, no pay" policy will apply.

Parliament's portfolio committee on public enterprises chairwoman Vytjie Mentor has called on all parties in the Transnet wage dispute to speedily find a solution.

This would be good for all because a prolonged strike would severely harm the economy, she said.
Transnet spokesman John Dludlu said that while the strike was protected, it had been marred by acts of violence and sabotage, in apparent disregard of a court order preventing union leaders and their members from violence, vandalism and intimidation.

Early estimates already put the cost of damage to Transnet assets at R24-million. As a result of tampering with infrastructure, two engines were derailed in Witbank on Thursday, while on Friday, a train carrying fuel to Swaziland was derailed between Empangeni and Stanger in KwaZulu-Natal.

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1.3 Transnet Strike Still on as Talks Falter

NewsTime, 17 May 2010

Transnet has sent a letter to its clients advising that the current strike by UTATU and SATAWU workers is expected to go on for no longer than two weeks as talks between the company and the unions deadlocked.

Transnet said in the letter that the strike has cost in R20 million in damaged equipment and decried the fact that lives had been endangered by rogue elements amongst the striking workers. Xtrata-Merafe Chrome Venture is amongst the companies working with Transnet to ease some of the gridlock from the now week long strike. Stuart Elliot of Xstrata said “The ongoing strike at Transnet has severely limited freight and shipping arrangements through Richards Bay and Durban”.

The parastatal and its unions have been locked in mediation at the CCMS from Friday afternoon as the two parties seek to resolve the strike. UTATU general secretary Chris de Vos said the move “may be the last attempt to resolve the pending wage dispute and strike between Utatu, Satawu, Sarwhu and Transnet”. The strike was called when Transnet and the unions could not reconcile on wage demands. The parastatal offered workers 11% to the workers 15%.

UTATU has written to the CCMS asking it to “assist us by conciliating the negotiations between Utatu and Transnet to avoid a drawn-out strike that could cripple the economy”. The union also expressed concerns over its poorly paid workers going without pay for a long time.

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1.4 Commuters next in line for Transnet strike havoc

ALISTAIR ANDERSON, Business Day, 17 May 2010

THE Transnet strike, which has already caused havoc in the shipping, mining and energy sectors, is set to enter a new phase this week, as industrial action is targeted at SA’s passenger rail operations.

The Passenger Rail Agency of SA said on Friday it would suspend rail operations indefinitely from today, stranding about 2-million commuters who use the trains of its subsidiaries, Metrorail and Shosholoza Meyl.

The South African Transport and Workers Union (Satawu) and the United Transport and Allied Trade Union (Utatu) gave notice last week they would strike over wages from today.

The unions are demanding a wage increase of 16%, while the rail agency has been offering 8%.

Meanwhile, wage talks over the week-long Transnet strike, involving both unions, resumed yesterday. Last Monday, Satawu began a strike at Transnet, demanding a 15% across-the-board wage increase, while management was offering 11%. Utatu joined the strike last Tuesday.

Transnet employs about 50000 people — 18000 of whom are represented by Satawu and 22000 by Utatu.

The shipping industry and some sectors of the mining industry have been hardest hit by the strike so far. Safmarine said last week its business had been severely affected because so much of its cargo was sitting at ports countrywide, especially in Durban. More than a third of Durban’s businesses are port-related.

Meanwhile, Kumba Iron Ore, 63% owned by Anglo American, as well as Merafe Resources, the Xstrata-Merafe chrome joint venture, both declared force majeure last week as a result of the strike. Force majeure, a standard clause in supply contracts, exempts the contracting parties from fulfilling their contractual obligations due to causes beyond their control.

The coal miners have been relatively unscathed by the industrial action, while the iron ore and ferrochrome miners have been hit hard.

Transnet spokesman John Dludlu said on Friday the parastatal was still able to meet its critical export requirements and to move bulk commodities.

Stanlib economist Kevin Lings said “it would be difficult to say exactly how much the strike had cost the economy so far as data still need to be collected”.

“It’s only been a few days but if this strike persists to two or two- and-a-half weeks, we can expect some serious medium- and long- term effects on our economy. I know coal, petrol and other mineral companies are starting to run low on reserve supplies.”

Lings said he was worried the strike would harm exports. “Countries like Germany and Japan have been recovering well from the recession because of improved exports. If ours are harmed by a prolonged strike, we could see a dampener to growth and we need all the growth we can get.”

The unions met the Commission for Conciliation, Mediation and Arbitration yesterday.

A policy research officer at Satawu, Jane Barrett, said last week the union had rejected the 11% wage offer as it was “too little too late”. She said the offer was misleading as it represented an 11% increase in the basic wage, while other worker benefits would increase by only 8%.

“The housing allowance will remain at 8%, as will medical aid contributions .… Based on this, the public should understand that we have not been unreasonable in rejecting the 11% offer,” she said.

According to Barrett, about 10% of Transnet’s workers were on fixed-term contracts, which offered no employee benefits to them other than a basic wage.

“Transnet’s clause on fixed- term workers is confined to its capital projects division and promises that 850 out of 5000 workers would be granted permanent positions.

“We feel that, in line with the (African National Congress) Polokwane resolution on decent work, the parastatal has an obligation to grant all of its workers permanent, reliable jobs.”

Barrett said the union also wanted to “negotiate a fairer bonus calculation formula”, while Transnet “wanted merely to consult around if it should change”, which “could make the strike persist for weeks to come”.

“It takes more than 120 years for the lowest-paid worker at Transnet to earn what the CEO does in a year,” she said.

Transnet human resources executive Pradeep Maharaj said benefit schemes had been “negotiated with care” and they were “quite lucrative by market standards”.

“Our workers earn on average R130000 a year and receive 13th and 14th cheques, which is unusual for any business. In fact, a 15th cheque may still be paid this year,” he said.

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1.5 Transnet strike still on while sides talk overnight

By SAMANTHA ENSLIN-PAYNE, Business Report, 17 May 2010

All signs are that the Transnet strike will enter its second week today, as mediation at the weekend had yet to resolve the wage dispute that has crippled ports and rail, effectively halting imports and exports in many sectors.

South Africa's economy might lose "billions of rands" if the strike was not resolved soon, Standard Bank economist Johan Botha said last week. But parties remained hopeful as they resumed talks yesterday afternoon that a deal could be struck soon that would end the industrial action.

Jane Barrett, a chief negotiator for the SA Transport and Allied Workers Union (Satawu), said yesterday they "have to remain optimistic".

Transnet's chief negotiator, human resources head Pradeep Maharaj, said: "We hope that good sense, maturity and real leadership, on both sides, will lead us to a fair, affordable and reasonable settlement."

Neither party would comment on whether Transnet had improved its previous offer of an 11 percent increase on the basic wage or whether Satawu and the United Transport and Allied Trade Union (Utatu) had relented on their demand for a 15 percent across-the-board wage increase.

After the Commission for Conciliation, Mediation and Arbitration intervened late last week, negotiations began at 4pm on Friday and ended at 2am on Saturday. Talks resumed yesterday at 3pm and were expected to continue late into the night.

Utatu general secretary Chris de Vos said the parties had agreed to meet yesterday "in a last attempt to try resolve the dispute and end the strike".

In a statement issued on Friday Transnet urged the strikers to return to work. It explained that workers earning a net income of R11 000 a month would only take home R3 500 if they remained on strike until the end of May.

Barrett said last week that workers knew that the strike was on a no work, no pay basis. "This is the choice they weighed up when deciding to go on strike."

Among other things, the wage demand had been driven by huge salaries and incentive bonuses paid to top managers, the unions said. Last year after workers accepted a 7 percent wage hike, management awarded itself a 14 percent average salary increase.

The wage settlement at Transnet last year was below the average wage increase across all industries of 9.3 percent. In 2008 Transnet employees received a 10 percent increase compared with the average settlement across all industries of 9.8 percent.

Of the total bonuses paid to all staff last year, 51 percent was paid to 4 500 managers and the balance was shared between 49 000 bargaining unit workers, said Satawu.

The impact of the strike is difficult to quantify as both Transnet and industry have yet to tally up the cost and instead are focusing on doing what they can to move goods.

But Transnet had its hands tied with the number of trains down from 800 a day to 100, said the SA Chamber of Commerce and Industry, and the fact that in the container and automotive sector there had been an almost total shutdown, said Dave Rennie, an executive at shipping group Grindrod.

Rennie added that the strike had had a "very detrimental impact on the entire economy" and that the message conveyed to global trading partners was that South Africa was unreliable.

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1.6 R30m-a-day strike

By Matthew Savides, IOL, 17 May 2010

Negotiators are working around the clock to resolve the Transnet strike that has crippled Durban's shipping and freight industries and is costing more than R30 million a day.

Other business in the city could also be brought to a standstill as workers face being stranded by the strike of Passenger Rail Agency of South Africa (Prasa) staff from tomorrow.

Thousands of Metrorail commuters in Durban may be affected. But taxi bosses said they would step in and try to accommodate the extra passengers.

Transnet rail and port workers downed tools a week ago in a protest that has been marred by violence. Unless striking unions - the South African Transport and Allied Workers Union (Satawu) and United Transport and Allied Workers Union (Utatu) - and Transnet can come to an agreement over wage increases, the strike will have a massive impact on the city's economy, as about 40 percent of Durban's businesses are port-related, according to municipal manager Michael Sutcliffe. The unions want a 15 percent increase, while Transnet has offered an above-inflation 11 percent increase. The Commission for Conciliation, Mediation and Arbitration is heading the negotiations which were set to continue this morning.

While it is difficult to estimate exactly just how much the action is costing the city, several companies reported losing "hundreds of thousands, and possibly millions" a day. The Mediterranean Shipping Company (MSC) alone reported losing between US$2m and US$3m a day as its ships remain anchored outside the port.

"There are thousands of businesses in the city that are directly or indirectly linked to the port operation. I would say that about 30-40 percent of the local economy is based on the port. Because of the sheer size of the port, the largest in Sub-Saharan Africa, Durban has been affected more than any other city," Sutcliffe said.

Transnet spokesman, John Dludlu, agreed Durban was "the worst affected".

Dludlu was reluctant to say how much the strike was costing daily, saying: "The real extent of the impact, including the cost, will only be known when it ends."

Figures in the region of R30m have been mentioned, taking into account how heavily Durban's economy relies on the port and port-related operations.

Given this, Sutcliffe said it was important that the strike was resolved "very urgently".

But Transnet workers appear ready to hold out until their demands are met, with no sign of when the strike might be called off.

A Satawu member, who asked not be to named, said workers earned R4 000 a month, barely enough to cover monthly expenses.

"Most workers earn a measly R4 000 a month and they are prepared to carry on striking because they need the increase.

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1.7 World Cup won't stop strike action, unions warn

Kashiefa Ajam, The Star, 15 May 2010

In Four weeks' time, South Africa will play host to the world when the country hosts the World Cup.

But the festivities could be hampered if unions decide to strike during the soccer tournament.

Already it is evident that strike season is well and truly upon us, with unions vowing to protest during the tournament if that was what it took.

This week saw strike action by the Communication Workers Union (CWU), The SA Transport and Allied Workers Union (Satawu), the United Transport and Allied Trade Union (Utatu) as well as an illegal strike by employees of the Rea Vaya bus system in Joburg.

On Tuesday, British Airways cabin crew announced plans to strike from May 18 to June 9 - two days before the World Cup kicks off.

British Airways has warned that the unprecedented scale of the walkouts over a 23-day period would cause "extensive disruption for potentially hundreds of thousands of customers over a busy period" and may affect travellers to South Africa for the month-long tournament.

Unite, which represents around 90 percent of BA's 12 000 cabin crew, said it had been forced to ramp up its actions in a long-running, bitter dispute over pay and conditions after BA turned down the union's demands last weekend.

In a statement, Unite's joint general secretaries, Derek Simpson and Tony Woodley, said: "Cabin crew are left with no choice but to take further strike action. There can be no industrial peace without meaningful negotiations and while management victimises trade unionists and uses disciplinary procedures in a witch-hunt."

Cosatu has also pledged to strike during the World Cup if deemed necessary. The union federation has submitted a Section 77 notice to the National Economic Development and Labour Council over Eskom's decision to increase electricity prices by 25 percent. And if a desirable solution cannot be found, Cosatu will mobilise its members and start a series of several stayaways and mass actions. Cosatu has said it had "no intention" of disrupting the World Cup and wanted it to be one of the most successful in Fifa's history, but added that it could not stop protests because of the event. The need to protect the 250 000 jobs which could be lost because of the electricity tariff increase was "bigger than the World Cup".

"We can't say: 'white flags, World Cup. We will continue after the World Cup'. Our argument is that the government and business must find a settlement so that we are not subject to the 25 percent increase," Cosatu added.

Yesterday, Satawu and Utata members - flanked by CWU members - handed over a memorandum of grievances to the CEO of Transnet Freight Rail, Chris Wells, at the parastatal's offices in Parktown, Joburg.

Thousands of striking Transnet workers, supported by Vodacom employees belonging to CWU, marched through the streets of central Joburg.

Striking Transnet employees had rallied earlier in support of Vodacom staff at Premier Nomvula Mokonyane's office, where they aired their grievances on labour broking.

As the memorandum was read out by union leaders, the crowd blew vuvuzelas and whistles and paraded a cardboard coffin bearing the name of Transnet human resources head Pradeep Maharaj.

The protesters dispersed soon after the memorandum was handed to Transnet. The parastatal was given seven days to respond. - Additional reporting by Sapa

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1.8 SACP to forge solidarity with mineworkers

WILSON JOHWA, Business Day, 27 May 2010

THE South African Communist Party (SACP) is today scheduled to meet the National Union of Mineworkers, the latest and biggest affiliate of the Congress of South African Trade Unions (Cosatu) that the party is engaging for a bilateral discussion.

In recent weeks the SACP has met four other Cosatu affiliates to “create working-class solidarity” over policies and to resist “destructive” forces within the ruling alliance. The meetings also come ahead of the alliance summit scheduled for next month.

Today, the newly elected five most senior office bearers of the African National Congress in Gauteng are meeting for the first time since the conference more than a week ago where Premier Nomvula Mokonyane lost her bid to become provincial party chairwoman.

Her defeat by Deputy Arts and Culture Minister Paul Mashatile brought back the “two centres of power” phenomenon in Gauteng, where power is divided between the premier and the ANC chairman. Whatever steps the ANC’s provincial executive takes will be closely watched for signs of a backlash against Mokonyane.

ANC Youth League president Julius Malema was this week due to “enrol” at the party’s political school in Gauteng after a disciplinary committee found him guilty last week of sowing disunity in the party.

It found him guilty of charges relating to his public attack on President Jacob Zuma for rebuking him in public, and in which Malema compared Zuma to his predecessor, Thabo Mbeki .

Malema’s supporters said they would help him pay his R10000 fine since he had not been acting in his individual capacity.

In Parliament, Trade and Industry Minister Rob Davies is tomorrow scheduled to brief the standing committee on public accounts on claims that corrupt officials at the Companies and Intellectual Property Registration Office collaborated with an international network of criminals to fund terrorism.

Intelligence agencies were investigating a scheme through which cross-border syndicates allegedly cloned legitimate companies, including Sun Microsystems, stealing about R144m in tax refunds from the South African Revenue Service .

Also this week, MPs will meet to discuss how to intervene in any revenue-raising legislation brought before Parliament, in line with the Money Bills Amendment Procedure and Related Matters Act. The act was approved last year and has not yet been used.

The budget vote process, which was completed in the National Assembly last week, continues in the National Council of Provinces. Up for discussion are the justice, police and agriculture votes.

Parties in the Transnet strike are due to continue arbitration talks with the Commission for Conciliation, Mediation and Arbitration, which started on Thursday.

The strike, involving about 85% of Transnet’s 50000-odd workers, centres on unions’ demand for a 15% across-the-board salary increment. Management is offering 11%. The strike started last Monday.

Later in the week, the Young Communist League will convene a “jobs for youth” summit at which Economic Development Minister Ebrahim Patel and Davies are expected to speak.

Zuma will chair a meeting of the Broad-based Black Economic Empowerment Advisory Council tomorrow. The meeting follows the Black Management Forum’s (BMF’s) disappointment over the election last week of Futhi Mtoba, deputy chairwoman and partner at Deloitte Southern Africa, as the new head of Business Unity South Africa.

The BMF described her appointment as a “blow against transformation and the unity process in SA” and a “victory for established business”. However, the BMF appeared to backtrack when it subsequently sent a statement saying it would give Mthoba its “full and unwavering support”.

Inkatha Freedom Party regional conferences are due to continue in preparation for the annual general conference scheduled for July 23-25 in Ulundi.

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1.9 Three miners die from polluted water – NUM

Sowetan, 17 May 2010

THREE mineworkers have died at Aurora Mine in Grootvlei, Ekurhuleni, after drinking polluted water, says the National Union of Mineworkers.

The mine’s management denies the claims.

“These people (NUM) are just rubbishing our name. We only have one person who died and we have paid for his funeral arrangements,” says Thulani Ngubane, one of the mine’s directors.

But NUM’s spokesperson Lesiba Seshoka stands by his account. “It is nonsense what the directors are saying. Three people have died and we have their names.

“And how can I rubbish a company that has already rubbished itself?”

Water supply was terminated to the hostel in March when operations at the mine were closed. Toilets are not working and mineworkers use a nearby open veld to relieve themselves.

NUM says about two weeks ago a mineworker died and that two more died last week at the Far East Rand Hospital after drinking polluted water from a nearby dam.

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1.10 Hell that shames Mandela-Zuma

By Sheree Bega, IOL, 15 May 2010

Almost a decade ago, Nelson Shikwambane left his family behind in Mozambique and ventured to South Africa because he believed it was the "land of plenty".

Shikwambane blames the controversial black investment group, Aurora Empowerment Systems, for shattering his dreams of a better life.

"I keep thinking this must be another part of South Africa," he says, gesturing to the mine's rundown hostel, where water, food and electricity supplies have been cut for several weeks because of Aurora's mounting debts.

Since late March, more than 2 000 mineworkers have been striking over the unpaid and sporadic payment of their wages by Aurora, which is in a protracted bid to acquire the liquidated Pamodzi Gold, which previously owned Grootvlei. Aurora's managing director is Zondwa Mandela, a grandson of former president Nelson Mandela, and whose chairman Khulubuse Zuma is President Jacob Zuma's nephew - politically well-connected names that workers blame for the lack of government attention to their plight.

"I've never been in a situation like this," says Shikwambane, a local National Union of Mineworkers (NUM) representative. "This is a disaster. How can Aurora be given a licence to mine but they cannot pay their workers or any of their suppliers?"

Last month, Aurora hastily convened a press conference to announce a R750 million cash injection from Swiss funders, but insurance, some wages and UIF contributions remain unpaid.

Life in the hostels is unbearable, says Shikwambane. Residents are forced to relieve themselves in the open because of fly-infested, clogged toilets without water to flush.

"Because of the condition of the food, people have runny stomachs and there are no toilets. This, for a country hosting the World Cup."

After weeks of empty promises from Aurora that workers would be paid, Category B (unskilled) mineworkers received 50 percent of their March salary last week.

The skilled Category A workers still await their March salaries and have only received half of February's pay.

The 500-odd workers who remain in the hostels survive on handouts from relatives or their unions. They blame a spike in diarrohea cases on "rotten" food provided through a contractor who sporadically supplies food to hostel residents.

Carlos Zombeni, 61, sits in the dying sunlight and washes his clothes with the same water he has used to drink, cook and bathe in - precious water he has begged from a kindly neighbouring homeowner.

His food is uneaten. "The food is not right," he says, of the "fong kong pap", which bounces under his fingers like a sponge. "I will rather throw it away. We all do."

Gideon du Plessis of trade union Solidarity, which feeds over 100 white Grootvlei families who have been plunged into a similar crisis, says the union is expanding its feeding project to feed more black mineworkers.

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2. South Africa

2.1 Get ready for the ANC national general council

THE DAILYMAVERICK, 17 May 2010

The ANC’s national executive committee, the group that really runs South Africa, says it didn’t talk about the sentence imposed on Malema at its big meeting this weekend. But, if it isn’t talked about, will the problem go away?

Is that true? Probably. Well, probably not officially. In other words, it was probably the big discussion point among everyone at the meeting. It just wasn’t discussed in the meeting, as in it wasn’t on the agenda, but on the sidelines, deals were done, proposals floated and ideas chucked aside.

Anyway, that doesn’t matter for now. What does is that we now have proof Malema doesn’t yet have the strength in the NEC to take on Gwede Mantashe.

At Sunday’s press conference, Mantashe actually whistled as he walked in. Yes, as in he didn’t have a care in the world. He likes to put on a little performance for the microphones, but still, he was particularly chipper this time. So it looks as if the Malema issue is just off the table. And for that to have happened President Jacob Zuma must have (a) been involved, and (b) come down heavily on Mantashe’s side against Malema.

But there are plenty of others waiting in the wings, all ready to weaken Zuma. As the ANC is asking everyone to behave nicely during the World Cup, perhaps even its own leaders will toe the line for a while. We’ll see.

The battle for control of the ANC is now moving to the national general council scheduled for 20 to 24 September (it is going to be fun). The ANC is now seriously going to look at its internal election procedures. You may remember that Baleka Mbete hinted at as much in her speech to the Gauteng ANC’s conference. Importantly, Mantashe also says he’s not about change the slate system, where people gather around one candidate and all run together. So everyone votes for the group of five or six, rather than for individual candidates. We think Mantashe is wrong, terribly wrong: As a result of the winner-takes-all approach, completely useless people, such as Gwen Ramakgopa, can be elected on the coat tails of the headliner.

Mantashe may be thinking it’s impossible to change the system, so there’s benefit in being a pragmatist. He may be right, but the slate system creates huge leadership issues for the party and, by default, the country. Mantashe would do the country a huge favour by tackling the problem, as difficult and unpleasant as it probably is.

But the Malema story is far from over, and it is bound to influence the NGC. As loud and boastful of his support as he is, Malema’s facing the fight of his life in the provinces. Witness what happened in Limpopo, where he had to use everything he could get his hands on, from the local police to the nearest available chair. In the Eastern Cape it appears he’s had to influence the accreditation process, to prove that ANC adage, he who controls accreditation, wins.

Malema may well win a few of these conferences, and he may even stay on as leader of the league. But when there’s a winner, there’s also a loser and, by bullying his way around provincial election processes, Malema is creating a lot of pissed-off losers. Sore, angry, well-resourced and hugely motivated losers. People who have an abiding passion being in politics. Young people who see a long political career in front of them.

Surely, it’s just a matter of time before one of them, or a group, decide there could actually be life outside the ANC. Particularly if Malema actually survives, and his career continues upward. That could be the inspiration and continued fuel for a group of people to keep fighting Malema.

Then there’s the matter of demography. All of these people, the ones pissed off by Malema in the league are all younger than 30. And that happens to be the start of our population’s growth point. In other words, there’s a large group of people at the right age to be led by these people.

It could be that Malema's brand of supreme divisiveness is sowing the seeds of the next big splinter from the ANC. Perhaps. Maybe it is way too early to say, but still, you read it here first.

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2.2 Now ANC endorses leadership contests

KARIMA BROWN, Business Day, 17 May 2010

IN A departure from its normal stance on leadership succession debates, and in an effort to manage the tension emanating from these debates, the African National Congress (ANC) yesterday said leadership contests were a “normal” part of the democratic process in the party.

The succession debate, which will come to a head in 2012 at the ANC’s elective conference in Bloemfontein, is gaining momentum despite efforts to rein it in by party high-ups.

Addressing the media in Johannesburg after a two-day meeting of the party’s national executive committee, secretary- general Gwede Mantashe said it was important to take the debate about leadership “out of the context of conspiracy”.

“Contestation at conference is healthy and normal and should not be conflated to mean there are divisions in the ANC. Look at the organisation, it is almost 100 years old. There is no leader that old in the ANC, leaders come and go, but the ANC remains,” he said.

While several ANC figures have publicly backed President Jacob Zuma ’s bid for a second term in office as party leader, others have privately raised questions about his suitability .

This has coincided with the ANC Youth League’s campaign to remove Mantashe from office and replace him with Deputy Police Minister Fikile Mbalula.

Some have interpreted the youth league’s anti-Mantashe drive as a proxy war against Zuma’s leadership.

This view has now gained currency, especially after the party moved to put ANC Youth League leader Julius Malema on notice following his disciplinary hearing, during which he pleaded guilty to sowing disunity in the ANC.

Last week, the president of the powerful National Union of Mineworkers, Senzeni Zokwana, said ANC treasurer Mathews Phosa’s decision to represent Malema was because Phosa was “dreaming of wanting to be president before conference”, sparking speculation that Phosa has such ambitions.

Mantashe’s comments also come amid several ANC leaders’ pronounc ements on the 2012 conference, including newly elected ANC Gauteng chairman Paul Mashatile ’s statement that the ANC’s current top six officials are not guaranteed re-election.

The ANC has drafted a set of rules — to be adopted at its national general council — meant to guide the lobbying process, but it remains an uphill battle to get all to play by these rules.

While internal auditing processes were intact to ensure rigging and fraudulent membership did not lead to election outcomes being questioned , Mantashe said the ANC was concerned about provincial conferences of the youth league. He urged delegates to raise queries in the relevant structures, and league members not to boycott elective conferences when their complaints were not being dealt with.

“We are worried about disruptions of any conference, and we are worried if contests lead to total anarchy.”

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2.3 ‘Tenderpreneurs’ a symptom of failed BEE, says Nzimande

WILSON JOHWA, Business Day, 17 May 2010

SBLACK economic empowerment (BEE) was in crisis as established white businesses were reluctant to fund empowerment deals, South African Communist Party (SACP) general secretary Blade Nzimande said on Friday.

Evidence of the crisis was the parlous state of sector charters, including mining and financial services. The result was that the state was the main target for accumulation for those who would otherwise seek quick gains through empowerment deals in the private sector, he said.

“If you have less and less opportunity to accumulate wealth in the broader private sector, then people target the state,” said Nzimande, addressing the National Union of Mineworkers’ central committee meeting on Friday.

He said the “tenderpreneur” phenomenon was a reflection of the promises of narrow empowerment . “The increase in tenderpreneurs tells us that BEE is in crisis,” said Nzimande, who is also the minister for higher education and training.

He took aim at calls for nationalisation of the mines — a campaign waged by the African National Congress (ANC) Youth League — saying it was aimed at “saving a sinking narrow BEE project”.

Distancing the SACP from nationalisation that did not advance the interests of the poor, he said historically, nationalisation had also served dictators like Adolf Hitler.

Nzimande dismissed the argument that an attack on tenderpreneurs was an attack on the ANC . He said this claim had come from the tenderpreneurs themselves.

“It’s not true that this is an attack on the ANC, much as there might be corrupt people in the ANC, the SACP and Cosatu ( Congress of South African Trade Unions),” he said.

Several agreements had been made between the SACP and Cosatu, including one providing for provincial bilateral meetings in order to understand the dynamics in each region of SA.

The two organisations had adopted different approaches towards initiatives of the Zuma administration. While Cosatu still preferred to publicly take on the government, the SACP had adopted a more backroom approach. The two bodies were preparing to meet the ANC at an alliance summit to be held after the Soccer World Cup.

Nzimande lamented the fact that Cosatu members were not joining the SACP in large enough numbers. The SACP had set a target of reaching 500000 members by 2014.

He said there was a need to explore the setting up of working- class radio stations and newspapers. “If we don’t create our own institutions, our struggle is doomed.”

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2.4 AWB blames latest farm attack on the ANC

Andrea van Wyk, Eyewitness News, 17 May 2010

Potchefstroom farmers on Sunday accused police of not doing enough to protect them against farm attacks.

Farmer Boetie Strydom was murdered on his property just outside the town on Saturday.

His neighbour, Graham Brown, said he is no longer sure if it is worth holding on to his own farm.

He described what happened to Eyewitness News.

“Boetie had been chained around his legs and his head had been beaten in. They stole his vehicle. Police are apathetic. They don’t follow up on leads,” he said.

The AWB spoke out against the latest farm attack and blamed the ANC.

The organisation’s Andre Visagie said: “On 12 May the ANC removed the charge of hate speech from the charge sheet of Julius Malema which was nothing else but an encouragement to the farm murderers to take up arms again against our farmers.”

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