/ 1 January 2008

Cosatu: Poverty, inequality biggest problems of 2007

Levels of unemployment, poverty and inequality remained the biggest problems in 2007, the Congress of South African Trade Unions (Cosatu) said in its New Year message on Monday.

”The number, and quality, of new jobs being created are nowhere near enough to meet the Accelerated Shared Growth Initiative for South Africa,” said Cosatu spokesperson Patrick Craven.

”The target of halving the 2004 levels of unemployment and poverty by 2014, and the rate of new job creation is actually slowing down … It is time to take stock of what we have achieved in 2007, and look at the problems, opportunities and challenges we face in 2008.”

Craven said for South African workers there were major victories, highlighted by the ”united and heroic public-sector workers’ strike”.

”This massive mobilisation of workers from many unions and federations forced the government to back down from its arrogant intransigence and won significant improvements in wages and working conditions. It also brought us closer to the goal of one united public-service trade union.”

The victory of the strike had opened the door for other workers to negotiate better settlements, but it was to no avail.

”Virtually none of the workers who won these wage increases ended the year any better off than at the beginning, as runaway increases in the price of food, fuel, interest rates and other daily costs rapidly cancelled out the gains they had made earlier.”

Craven said the judgement against Tiger Brands for fixing the price of bread only confirmed what Cosatu had long suspected: ”These price hikes were not just the unavoidable consequence of global trends, but theft by businesses who were cashing in on the inflationary trend. We shall be again raising our demand for a broader investigation into price increases to unveil the extent of price-fixing.”

The South African Reserve Bank’s ”insane policy of constantly raising interest rates” was fuelling inflation further, Craven said.

”Without any doubt, 2007 will be remembered most for the series of crucial political events — the ANC [ANC] policy conference, the South African Communist Party national congress, the Cosatu central committee and finally, the African National Congress national conference — which transformed the political landscape …

”Comrade Jacob Zuma became the symbol of a mass movement. His victory was a victory for the people of South Africa and a triumph for democracy. The ANC delegates made it clear that they are sovereign and will not tolerate any leaders who think they have a divine right to remain in power.”

A warning sign that the former leadership had not given up the struggle was the government’s ratification, within days of the conference ending, of the South African Broadcasting Corporation’s new board of governors.

Cosatu would continue to fight for the rights of workers under attack in Palestine, Swaziland, Pakistan, Burma and many other countries.

”Cosatu sends New Year greetings to the workers of the world and the people of South Africa. We wish everyone a very happy, successful and revolutionary 2008,” said Craven. — Sapa