2009 `STRIKE SEASON' TURBULENT AND POLITICAL

UNCLAS JOHANNESBURG 000117

SENSITIVE

E.O. 12958: N/A
TAGS: ELAB PHUM SOCI SF PREL PGOV ECON ELTN EFIN EIND
EINV, ENRG
SUBJECT: 2009 `STRIKE SEASON' TURBULENT AND POLITICAL

REF: A) 2009 JOHANNESBURG 94; B) 2009 PRETORIA 1455


1. (SBU) Summary. Up to 190,000 South African municipal
workers plan an indefinite strike from July 27 that will disrupt
local service delivery. The strike is being organized by the
Congress of South African Trade Unions (COSATU) and its South
African Municipal Workers Union (SAMAWU) affiliate over demands
for a fifteen percent wage increase and better working
conditions. COSATU has boosted participation by joining with
the Independent Municipal and Allied Trade Union (IMATU).
Several other strikes are also ongoing or planned for `Strike
Season, the local term used for the June to August period when
most wage agreements are negotiated. The strikes mark another
escalation of demands on President Zuma from a politically
confident labor movement that helped bring him to power. End
summary.

Strike: Union Wants Large Increase to Cover Inflation
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2. (SBU) Up to 190,000 municipal workers plan to strike
starting on Monday, July 27. The action will disrupt most local
government services but the extent of disruptions will not be
known until the strike is underway as trade unions are still
frantically organizing the action. Union leaders have largely,
but not unanimously, indicated that they will abide by the Labor
Relations Act mandate that essential services operate at a
minimum level during strikes. Essential services include
community safety, emergency services, healthcare, water,
electricity, and the maintenance of infrastructure. The strike
is being organized by COSATU and its SAMWU affiliate. They have
joined with non-COSATU affiliate IMATU to further increase
participation.


3. (SBU) SAMWU negotiations with the South African Local
Government Association (SALGA),representing municipalities,
came to a halt on July 23. SAMWU demands that municipal
employees receive the greater of a 15 percent wage increase or
2500 Rand (approx $325). They also demand a minimum wage of
5000 Rand (approx $650) per month, home mortgage subsidies
tallying 70 percent, a 70 percent rental allowance, and the
filling of all vacant local government positions by January 1,

2010. Unions have said that the increase must cover an 11
percent inflation rate as well as increasing prices for food and
utilities. SALGA countered that the demands are unaffordable
and unrealistic because most municipalities are in debt based on
the world financial climate. SALGA offered an 11.5 percent
increase on the recommendation of a labor mediator. SALGA
initially offered a 7.2 percent increase while SAMWU initially
demanded 26 percent. Negotiations broke down on July 23 with
SALGA CEO Xolie George noting that organized labor was
intransigent and unwilling to accept the recommendations of the
mediator.

How will the SAG React?
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4. (SBU) President Jacob Zuma urged both sides to negotiate in
good faith given difficult global economic conditions.
Pro-business elements in the Zuma government have been less kind
and have publicly scolded COSATU for a number of planned or
current strikes that all press for double-digit percentage wage
increases. A strike organized by the South African Chemical,
Energy, Paper, Printing, Wood, and Allied Workers Union
(CEPPWAWU) has entered its fifth day and is hitting the paper
and pharmaceutical sectors especially hard. COSATU is pushing
for the petroleum (fuel) sector to fully join the protest.
Other possible strikes include a national mining strike, a
strike at state-owned Telkom, a strike by commuter train
operators, and a strike at the South African Broadcasting
Corporation. Public health doctors and teachers are also
planning to strike for a second time if the South African
government does not implement wage increases (ref A). These
strikes are coupled with violent service-delivery protests over
the government's failure to provide a basic quality of life for
all citizens (ref B).

Union Views
--------------


5. (SBU) A union official told Laboroff that, while COSATU is
perhaps overreacting to issues, such `sensitivity' is necessary
as South Africa has no effective political opposition. They
believe that they must `play the revolutionary role of the
vanguard of the working classes' to ensure that the government
is kept `on its toes.' Union officials concede that COSATU's
strike action is a way of `flexing their muscles' and have said
that this is not objectionable because it will allow COSATU to
be taken seriously by the new administration and deliver on
promises made to its constituency.


6. (SBU) COSATU General Secretary Zwelenzima Vavi told the
press this week that low average salaries and an economic crisis
`not of [workers] making' has caused COSATU members to demand
rapid action. Previous average wage increases of seven to ten
percent were no longer able to provide workers with a basic
standard of living because `many workers still earn close to
2500 Rand (approx $325) and in the context of this recession,
feel they haven't benefited from growth.' South Africa's
leading labor academic institution agrees. Prominent Wits
University Sociology Professor Eddie Webster told the business
weekly Financial Mail on July 23 that while `strike season' is
not unusual, it is more active because of the economic
recession. Webster said, `what is different is that bargaining
is being intensified by the economic recession. Workers are
feeling genuinely squeezed... and shop stewards and trade unions
face a dilemma. If they don't meet workers' demands, they are
seen to be sellouts and workers will go it alone without them.'

Comment
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7. (SBU) COSATU has done a good job of citing legitimate worker
concerns in its current and planned strikes. However, the trade
union federation is also using the strikes to remind Zuma of its
political power and to carry clout far above its two million
strong membership. COSATU continues to push for further policy
influence and has been especially vocal on issues of fiscal
management, nationalization of industry, and trade
liberalization. President Zuma has not yet spoken out about
COSATU demands, but is aware that much of the public is behind
any demand that is seen to offer rapid quality of life
improvements. End comment.
HASKELL