Government’s proposals for the Growth and Development Summit reflect a remarkable synergy with those of the Congress of South African Trade Unions (Cosatu) given the differences that have rocked their alliance.
Both put faith in public works as a key to job creation; both agree access to financial services is essential; and they have similar perspectives on where industrial growth lies: in mineral beneficiation, information and communication technology, and the pharmaceutical industry.
Where they differ is that the government’s package, released last week, is silent on macroeconomic changes, especially monetary policy. Cosatu tackles this in its submission.
Another area of contention could be Cosatu’s call for a 15% prescribed investment on contractual savings. Since 1994 government has avoided such prescriptions, which spook markets. Ministers in the economics cluster have consistently lobbed the challenge back at labour, saying unions should direct pension fund investments more vigorously towards development.
The government submission bears the imprint of labour director general Rams Ramashia: that of a negotiator with a keen sense of social partnership. “Growth and development cannot be achieved by government acting alone, and everything that needs to be done cannot be done at once,” it says.
While Cosatu is pushing for an expanded summit agenda, the government wants to stick to four points: investment; skills and equity; job creation; and local action. A tighter agenda will forestall summit cynicism, the government says, and ensure it does not end up as a Jobs Summit “free for all”. Said Ramashia: “Each area should be unpacked to clarify the roles and functions of each social partner.”
Initially sceptical of public works, the government has accepted Cosatu’s view that such state intervention in the jobs market is necessary.
Summit talks are likely to revolve around the scale of this job creation. Cosatu’s submission called for a R5-billion investment; the February Budget set aside R1-billion for public works. Most of these jobs will likely be created in public infrastructure projects, which the government says should be managed by teams representing it, business and labour.
From business, the government wants to secure greater support for the system of learnerships (state-funded internships for young workers) and for industry-based codes and charters to guide sectoral black empowerment.Â