/ 6 July 2023

Cosatu strike to highlight economic crisis

Cosatu Shutdown 4941 Dv
File photo by Delwyn Verasamy, M&G

Workers fed up with corruption, crime, unemployment and the crushing weight of rising inflation will, on Thursday, down tools in a national stay-away that has support among labour federation Cosatu affiliates from nurses and security guards to transport workers.

But political analysts and economists said on Wednesday that although the call for industrial action resonated across the economic divide, from the lowest paid to higher income workers, they believed it was unlikely workers would turn out en masse because those with jobs would rather work, given the difficult economic climate.

Cosatu parliamentary coordinator Matthew Parks said in a statement that Cosatu and all its affiliate unions would embark on a “nationwide socio-economic strike” with marches taking place in major urban centres in the nine provinces.

“This is a protected strike, and a section 77 strike certificate has been issued by Nedlac [National Economic Development and Labour Council] guaranteeing all workers protection if they join the strike. The federation is pleased with the overwhelmingly positive response from the workers. Most workers have expressed full support for this strike,” Parks said.

He said the strike was in protest against the rising levels of unemployment, wage cuts, interest rate hikes, poverty and inequality affecting the working class.

“It is in defence of workers’ hard-won rights to bargain and attempts by employers in both the public and private sectors’ attempts to undermine this constitutional right. 

“It is a demonstration by workers that government needs to do more to end the current levels of load-shedding, cable theft, crime and corruption, wasteful expenditure and austerity cuts crippling the state, suffocating the economy, and further plunging workers into high levels of indebtedness and misery.” 

Parks said workers are “bleeding” because of the government’s sluggish response to policy failures that are leading to cuts in real wages and a rise in unemployment, with more than half the population struggling to make ends meet.

“This is also a signal to the government, the Reserve Bank and the commercial banks that the working class can no longer afford to bear the burden of rising levels of inflation, electricity tariff hikes and relentless and reckless increases in the repo rate. 

“We demand that all employers pay workers a living wage if they are to survive and buy the goods that the economy produces.” 

He said Cosatu demanded that the government fix dilapidated railway infrastructure and collapsed municipalities, 36 of which routinely fail to pay their employees.

“Companies are closing in many rural towns as basic services deteriorate,” he said.

South African Transport and Allied Workers Union spokesperson Amanda Tshemese said security sector and Passenger Rail Agency of South Africa workers would join the strike and make demands that include medical insurance, an end to fraudulent wage deductions and exploitation of security workers, a wage increase of 15% and a R3 000 housing allowance for rail agency workers.

The Democratic Nursing Organisation of South Africa (Denosa) said it was “in full support” of the strike.

“From non-implementation of collective bargaining agreements, non-filling of vacant posts due to budget cuts and corruption, to constant cutting of supplies of both water and electricity to homes and government service centres like clinics and hospitals, Denosa is in full support of the Cosatu national day of action,” spokesperson Sibongiseni Delihlazo said in a statement.

Analysts said the stayaway had wide sympathy across the country but questioned whether Costatu could draw large numbers to the picket line.

The University of Johannesburg’s Mcebisi Ndletyana said the effect of the strike to achieve change would depend on the level of damage meted to the economy.

“If government feels the strike is harmless and few people show up, then they will just ignore it, but if the turnout is good and has significant impact on the economy — and particularly if workers show a potential to repeat the same kind of strike in future — then they have greater likelihood of being listened to,” Ndletyana said.

He said trade unions had already expressed their unhappiness with the ANC, saying they may not support it in the upcoming 2024 election.

“And the SA Communist Party (SACP) is already flexing the idea of going it alone — there is a lot of unhappiness within the [tripartite] alliance,” Ndletyana said.

But, he added, the SACP placed a premium on obtaining plush government jobs so this was a factor that would keep it aligned with the ANC.

“Most of its officials were absorbed into state positions and have become very comfortable in these positions, and if you look at the cadres they have, most can’t find jobs anywhere else, and now they are in government they are unlikely to exit voluntarily. This talk of withdrawing could just be brinkmanship but the trade unions might go differently,” he said.

Independent political analyst Ralph Matheka said Cosatu is raising legitimate concerns and the message of the marchers is important, regardless of the turnout.

“It has almost become business as usual that things are not going to work properly, such as the issue with growth and unemployment. I know the immediate concern is we are already pressed, a strike will have a negative impact on jobs. 

“But while we appreciate the need to highlight the price of unemployment and households being squeezed, we are a country with a history of activism — not everything should just go to boardrooms,” Matheka said.  

“Activism by civil society and trade unions is important and we don’t know what difference it will make and whether the government will listen because the government doesn’t listen to anyone. There is no doubt a lot of people will heed the call, but the reality is desperation and fatigue has set in because people are dealing with things that look irresolvable,” he said.

The Centre for Risk Analysis’ head of research, Chris Hattingh, said everyone, from lower to upper income groups, feels the financial pressure brought on by higher inflation. He said the strike would increase criticism of the Reserve Bank but it would not make a material difference because the central bank would not change its stance on interest rates unless it sees an improvement in the macro-economic environment.

— Additional reporting by Mandisa Ndlovu.