It may seem that unions’ days are numbered, but labour is devising new ways to deal with globalisation
Glenda Daniels
Trade unions locally and internationally are on the defensive. They appear to be faced with the challenge to submit or fight changes in the economy. In reality, something in between, a third way, is emerging in South Africa – a problem- solving approach by some unions, to devise with employers creative solutions to problems, such as restructuring, downsizing, subcontracting, casualisation, outsourcing and retrenchments, which are the consequences of global capitalism.
The Congress of South African Trade Unions (Cosatu) recently hosted a conference to debate these issues. The theme was “Trade unionism in the 21st century: Vision and strategy” and the focus, “The impact of globalisation on trade unions”.
While traditional ways of responding to the new challenges continue in the form of mass protest action, alongside this, a more pragmatic approach, with new strategic thinking to find workable solutions, is also being taken.
In the union movement today there is a lot of debate about how to deal with the new world, says Professor Eddie Webster, co-author of the book Trade Unions and Democratisation in South Africa. He feels that within the new phase in the development of capitalism, where workers are being made to work harder and even pitted against each other, there are two schools of thought in organised labour. The first emanates from the younger generation of workers, who favour the pragmatic approach, and would like to do deals that benefit workers; the other comes from the older generation, which is the more traditional approach of mass protest action against globalisation.
“While both approaches are on the defensive, the pragmatic approach will opt for compromises but within a win-win situation. There are instances within Cosatu unions of trade-offs, where both employers and unions have jointly discussed increased productivity, increasing skills, multi-skilling and gain sharing,” Webster says.
He feels innovation is necessary in the world of work today where massive insecurity among employees exists due to increased competition. “This situation requires a different kind of organisation, where greater flexibility is needed.”
And indeed innovative thinking is beginning to take place. Bay Side Aluminium in Richards Bay, for instance, was faced with closure six years ago, which would have brought about 3E000 job losses. However, this situation was turned around with increased productivity going hand-in- glove with profit-sharing schemes for workers between the National Union of Metal Workers (Numsa) and the employer. The incentive scheme turned the company around so that today there are 4E500 employees. The action was part of the “economic value added” concept being touted by business today, both locally and internationally.
“Today the company is an example of a leaner more productive company, where gain sharing is an incentive, and it’s a model of how an old South African company can be turned around, with unions and business co-operating,” says Mohammed Seedat, human resources manager of Bay Side’s sister company, Hillside Aluminium.
At the latter company a “continuous improvement bonus” system was successfully negotiated by both Numsa and management. Here, gain sharing of up to 10% of the worker’s salary becomes a bonus, depending on the amount of aluminium produced, the quality of the metal, and the numbers of people injured during the processing of the metal. If fewer people are injured, the bonus is higher.
Another successful deal took place within PG Bison in Piet Retief, which had to retrench workers because some production lines had to be closed down as technology became obsolete. For the company to become competitive retrenchments had to take place, according to the company’s group human resources director, Eddie Fourie. Retrenched workers didn’t go without a fight. In compensation for the retrenchments, the Paper, Printing, Wood and Allied Workers Union negotiated that a community development trust be set up for the retrenched and unemployed in the community. Through this trust, skills in the community are being increased and there are now some booming industries in Piet Retief, such as crafts, poultry farming, metal and welding, basic driving skills, carpentry, vegetable production, motor mechanics, bricklaying, plumbing and panel beating.
Interesting initiatives among road maintenance workers are also taking place. Currently organised under the Gauteng roads department, work is being outsourced but not to an outside company. Instead, the same workers are forming small business units, with a view to eventually create small business companies, which will form the new outsourced company.
There are also some agreements in the metal industry, where casualisation of labour and sub-contracting are rife, but trade-offs are taking place. With the Steel and Engineering Industries Federation (Seifsa), Numsa reached an agreement that where workers have been employed for three months and work still exists, they automatically become permanent. An issue still up for negotiation with Seifsa is that if work is contracted out, then conditions of work for casual labour, such as wages and benefits, have to be the same as permanent workers.
Of course, the problem with these deals is that while work becomes competitive and more pressured, and small business solutions can provide short-term solutions, long-term benefits to workers and stability and security of work continue to be uncertain.
Apart from these shop-floor initiatives, strategic thinking is taking place at a broader level, indicating new thinking on the part of unions about the liberalisation of the economy.
Cosatu has indicated interest in a trade-off with the government and business, but it has cautioned that this would not take place if it meant reducing the income of lower-paid workers.
At a tripartite level within the National Economic Development and Labour Council (Nedlac) negotiations between the government, business and labour continue, to try and reach some form of agreement on how to deal with the economic crisis that would include boosting job creation.
At a bipartite level, business and labour are in the process of forming the Millennium Labour Council. The aim is to hold talks at a bilateral level on issues of unemployment and current poverty levels, and then to approach the government with potential agreements that could be reached at Nedlac level.
At a global level, the International Federation of Trade Unions (ICFTU) conference took place in South Africa last month, a southern initiative, indicating an understanding from organised labour that global alliances need to be formed. One resolution at the conference was that a major revamp of trade union movement thinking is needed to meet the challenges of globalisation. The confederation believes that global capitalism means that unions have to get global too.
Clearly, in the meantime, unions are emerging with strategic vision and are looking to make the most of the ruthless capitalism sweeping across the world.
Forming alliances with the international labour movement, as well as communities, NGOs, doing deals with employers, making sure that labour is not a junior partner to be bullied into submission within the tripartite alliance, and ensuring that the pressure for skills development continues – these initiatives can contribute towards organised labour retaining its power.
Indeed, it would be a tragedy if trade unions lost their power. They are a crucial part of civil society and the only institutions driven by the masses as opposed to the elite.
But this won’t happen if strategic thinking with vision continues to take place.