Glenda Daniels
The government failed to show up at a crucial tripartite meeting to negotiate the country’s industrial strategy at National Economic Development and Labour Council (Nedlac) earlier this week.
This comes hot on the heels of the anti-privatisation strike, when labour and the government attacked each other for inadequate consultation. Nedlac and the Congress of South African Trade Unions (Cosatu) have several times over the past year complained about low-level representation by the government.
The Department of Trade and Industry’s Edwin Smith confirmed the government was not represented at the meeting due to “an irreconcilable clash of schedules”, and that the meeting had been postponed until later in the week.
Both labour and the government say that a common industrial strategy policy framework is a core element of economic policy for job creation and economic growth. But there are different approaches. In a discussion document, Minister of Trade and Industry Alec Erwin concedes that labour sees the government as pro-business, because it has not been interventionist enough in support of employment. He refers to “intense debates” within the alliance on the issue of tariff reduction and concedes there is unlikely to be agreement on all matters but there is a need for a policy framework.
Cosatu also wants a framework, but is uncomfortable with the government’s emphasis on “competitiveness” and tariff reduction.
The South African Clothing and Textile Workers’ Union blames the government’s industrial policies, specifically tariff reductions, for more than 34000 job losses over the past two years and the closure of 172 factories.
Key to framing union industrial policies are sectoral job summits. These have taken place in the public service, mining, and clothing and textiles.
Tanya van Meelis, Cosatu’s trade and industry coordinator, says the government’s emphasis on the export market is excessive and there is insufficient emphasis on expanding domestic markets.