Identifier
Created
Classification
Origin
09JOHANNESBURG24
2009-02-06 15:04:00
UNCLASSIFIED
Consulate Johannesburg
Cable title:  

SOUTH AFRICA: JANUARY 2009 LABOR NOTES

Tags:  PREL PGOV ELAB ETRD SF EIND ECON EFIN EMIN ELTN 
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R 061504Z FEB 09
FM AMCONSUL JOHANNESBURG
TO SECSTATE WASHDC 6408
INFO DEPT OF LABOR WASHINGTON DC
AMCONSUL CAPE TOWN 
AMCONSUL DURBAN 
AMEMBASSY PRETORIA 
AMCONSUL JOHANNESBURG
UNCLAS JOHANNESBURG 000024 


E.O. 12958: N/A
TAGS: PREL PGOV ELAB ETRD SF EIND ECON EFIN EMIN ELTN
ENRG
SUBJECT: SOUTH AFRICA: JANUARY 2009 LABOR NOTES

Summary
-------
UNCLAS JOHANNESBURG 000024


E.O. 12958: N/A
TAGS: PREL PGOV ELAB ETRD SF EIND ECON EFIN EMIN ELTN
ENRG
SUBJECT: SOUTH AFRICA: JANUARY 2009 LABOR NOTES

Summary
--------------

1. This is the January, 2009 issue of the U.S. Consulate
Johannesburg's Regional Labor Office monthly notes. Topics in
this issue are as follows:

- ANC Hopes to Ban Labor Brokers
- Johannesburg Metro Police Strike
- COSATU Condemns the Congress of the People Party (COPE)

- COSATU to Refuse to Unload Israeli Ship in Support of Gaza

- COPE to Launch a Trade Union Body to Rival COSATU?

- COSATU General Secretary Vavi Opts Not to Accept Public Office

- COSATU North West Condemns the Attitude of Abusive Farmers

- COSATU Western Cape Secretary to Resign

- Mercedes to Spare Union Jobs

- Lay-offs Loom in Mining and Other Sectors
- South African Mine Safety Audit Made Public

- Senior Executives Emigrate

- SATAWU Blames ANC for Possible Bus Industry Collapse
End summary.


ANC Hopes to Ban Labor Brokers
--------------

2. Minister of Labor Membathisi Mdladlana said that the ANC
will ban labor brokers if the party wins the upcoming general
election. Speaking at the National Economic Development and
Labor Council Summit the Minister made reference to Namibian
government success in outlawing brokers. Mdladlana said that
brokers are detrimental because they avoid paying pension or
health benefits and place a further strain on South African
social services. He also said that permanent employment should
be the norm for all South Africans. Chief Executive of Origin
Consulting Marius Coleman countered that legitimate labor
brokers are the norm and the industry is keen to clean up the
bad image caused by a few unscrupulous operators. Business
believes that legitimate labor brokers provide a stable and
productive workforce and are a major contributor to the South
African economy.

Source: Sowetan, December 15, 2008


Johannesburg Metro Police Strike
--------------


3. The Johannesburg Metro Police Department (JMPD) embarked on
an indefinite strike starting February 1. The strike action
culminates from the inability of the City and the SA Municipal
Workers Union (SAMWU),assisting the officers, to agree to
demands put forward by the union including the suspension of
Chief of Police Chris Ngcobo and the Deputy Director of Internal
Affairs for alleged corruption. Johannesburg City Spokesman
Mtathisi Modingoane said yesterday that the South African Police
Service will be deployed to ensure there is no repeat of last
year's JMPD strike when several people were injured after
striking metro officers violently blocked major expressways.
The strike and protests were approved by national authorities
with the caveat that striking officers are not permitted to
carry firearms or wear uniforms.

Source: Citizen, February 1, 2009


COSATU Condemns the Congress of the People Party (COPE)
-------------- --------------

4. The Congress of South African Trade Unions is distributing a
booklet that strongly condemns the breakaway Congress of the
People Party (COPE). The 14 page document written by COSATU
General Secretary Zwelinzima Vavi is titled `Defend our
Movement: Advance the Gains of Polokwane! Expose and Isolate the
Black DA' and alleges COPE will destroy COSATU if it is voted
into office. The book also alleges that COPE could adopt a
policy platform similar to the largely white Democratic Alliance
party and legislate against leftist labor laws. Vavi accuses
COPE president Mosiuoa Lekota and his deputy Mbhazima Shilowa of
leaving the ANC to pursue an `agenda of the capitalist class.'
COSATU has printed numerous copies of the booklet to `set the
record straight, so that voters did not get confused.'

Source: The Star; Business Day, January 29, 2009


COSATU to Refuse to Unload Israeli Ship in Support of Gaza
-------------- --------------

5. The Congress of South African Trade Unions (COSATU) and the
Palestine Solidarity Committee (PSC) have intensified a campaign
`in support of the Palestine people.' COSATU and its affiliate,
the South African Transport and Allied Workers Union (SATAWU),
have pledged to boycott Israeli ships. SATAWU has said they
will not offload a ship from Israel that is scheduled to dock in
Durban on Sunday, February 8, 2009. This follows the decision
by COSATU to strengthen the campaign in South Africa for
boycotts, divestment, and sanctions against `apartheid' Israel.
This will be the second time SATAWU has refused to unload goods
from countries they classify as `dictatorial and oppressive.'
These include Israel, Zimbabwe and Swaziland.

Source: The Daily News (Pretoria),Feb 4, 2009


COPE to Launch a Trade Union Body to Rival COSATU?
-------------- --------------

6. Press reports suggest that COPE hopes to launch an
affiliated trade union movement led by former COSATU President
Willy Madisha. The union will reportedly focus on education and
membership will be drawn from the South African Democratic
Teachers Union (SADTU). The press further speculates that
Madisha believes SADTU members are angry he was pushed out of
COSATU and will quickly switch allegiance to COPE. Madisha has
publically denied both his and COPE's involvement in forming a
parallel teachers union but said that unionists no longer want
to be divided on the basis of political beliefs.

Source: Mail & Guardian February 02, 2009 and Business Day,
February 02, 2009


COSATU General Secretary Vavi Opts Not to Accept Public Office
--- -------------- --------------

7. The ANC welcomed Vavi's January 21 decision to withdraw his
name from the ANC nomination list for a cabinet and/or National
Assembly position. This was despite the fact a number of ANC
and COSATU branches indicated they wanted Vavi `deployed' to
national leadership. ANC Secretary General Gwede Mantashe
attempted to clarify rumors surrounding the withdrawal by noting
Vavi's decision would help the union movement remain strong and
independent. Vavi said that the COSATU executive committee made
it clear he should not involve himself directly in the ANC
government and should instead continue as a key member of the
ANC governing tri-partite alliance. Vavi quipped that he was
proving his main critic --- Thabo Mbeki --- wrong. Mbeki had
accused Vavi that COSATU campaign support for Jacob Zuma was not
based on principle but on the fact that such support would net
Vavi a cabinet position.

Source: The Citizen, January 22, 2009


COSATU North West Condemns the Attitude of Abusive Farmers
-------------- --------------

8. COSATU Secretary Solly Phetoe alleged that South Africa's
North West Province remains a hotbed of agricultural labor
abuse. Phetoe believes that the abusive activities are being
led by `some white farmers' near Lichtenburg and Mafikeng.
COSATU organized a march outside the Ottosdal Magistrates court
on January 12 to coincide with the appearance of Johan Nel in
the court for allegedly shooting 16-year old student William
Oupa Ntsaku more than three times in October 2008. Nel was
accused by community members of being abusive to farm workers
and community members view his abusive behavior as racially
motivated. COSATU believes that Nel and many other farmers are
violating the labor rights of workers. The Union is starting a
campaign to push the South African Department of Labor (SADOL)
to better enforce the Basic Conditions of Employment Act and to
be the primary enforcer of farm workers rights. They next plan
a protest against SADOL.

Source: NW SG General Solly Phetoe, January 26, 2009


COSATU Western Cape Secretary to Resign
--------------

9. The Western Cape's dynamic COSATU Secretary General Tony
Ehrenreich plans to leave the federation in 2009. Ehrenreich
said he had fallen out with COSATU and `believes it's time to
shake things up and change the way we conduct politics... we are
running the risk of just having a new [ANC] crowd with no really
change'. Other COSATU Western Cape affiliates have also echoed
Ehrenreich and said their members support the values of the ANC
but do not like the leaders or their actions. However, they do
not support COPE because too many of its leaders are
`contaminated' by previous political actions and lack
credibility. Ehrenreich wrote that the ANC should have a
coalition partner that shares the kind of progressive agenda
that advances the interest of the poor in the Western Cape. It
is not clear whether Ehrenreich will run with COPE or form a new
party that would help the ANC win back lost supporters.

Source: Mail & Guardian, January 23, 2009


Mercedes to Spare Union Jobs
--------------

10. Mercedes-Benz South Africa's plant in East London has begun
a cost cutting restructuring program but has promised COSATU
that it will not retrench any union members. The plant is one
of the three in the world that exports the Mercedes C-Class to
the U.S. (it's biggest) market. Mercedes remains the largest
employer in East London and was unable to specify how many jobs
were on the line.

Source: Sowetan and Star January 27, 2009


Lay-offs Loom in Mining and Other Sectors
--------------

11. Analysts have estimated substantial job losses in many
sectors of the South African economy, with mining the hardest
hit. The Department of Minerals and Energy has established a
task force to investigate mitigation strategies that will
protect the local mining industry from the global slowdown. The
Chamber of Mines said that retrenchment will be a last resort
but believed that over 9000 mining jobs are at risk in the next
few months. The National Union of Mineworkers stressed that its
priority is to defend jobs and is pushing the South African
government to implement a moratorium on retrenchments. Trade
Union Solidarity reported that it had received notice of 9163
possible retrenchments in mining. Solidarity held its first
section 89 consultation - which deals with retrenchments - with
mining contractor Murray & Roberts over that company's plans to
lay off 1,400 employees. Analysts cited the following other
major corporate job losses and noted that more up to date
figures will be released in late February 2009: Ford - 800,
Arcelor Mittal - 200 contract workers, DRD Gold - 1700, Lonmin -
5500 plus 1400 contact workers, Uranium One - 1013, new car
dealers - 3500, ABSA - 1210 and Mutual & Federal - 600.
Source: Mining Weekly and Business Day, December 12 -17, 2008


South African Mine Safety Audit Made Public
--------------

12. National Union of Mineworkers (NUM) Secretary General
Frans Baleni received confirmation from President Kgalema
Motlanthe that the long awaited Presidential Mine Safety Audits
reports will be made public. The audits were ordered by former
president Thabo Mbeki after 3200 workers were trapped
underground at the Harmny Elandsrand Gold Mine in 2007 by a
falling pipe that damaged shaft infrastructure. The scope of
the safety audit covers design and maintenance, safety risk
management, legal appointments, and occupational health and
safety policy. NUM stated that the safety audits are critical
for NUM to focus its campaign on companies and mines `of
concern.'

Source: NUM National Office, January 26, 2009


Senior Executives Emigrate
--------------

13. Senior executives have joined the ranks of those leaving
South Africa, although young professionals and middle management
still make up the bulk of those departing. Most senior
executives cited concern with the high crime rate (an average of
50 people are murdered every day, among a population of 48.8
million). They were also concerned that robberies, break-ins,
and holdups at businesses increased by 50% in the 2008 National
Crime Report. Peter Gent, Chief Operating Officer of Rand
Merchant Bank, said he was trying to recruit professionals
overseas to work in South Africa because of an exodus of
investment bankers, accountants and information technology
specialists. Skills shortages have severely affected the public
sector and the South African government is attempting to recruit
engineers, doctors, and teachers from abroad. The First
National Bank property gauge in October 2008 showed that 18
percent of people selling their property in the third quarter
were doing so because they were emigrating, up from 9 percent in
the fourth quarter of last year. Analysts say power cuts in
early 2008 and a wave of xenophobic attacks in May contributed,
as well as the changed political climate in which Thabo Mbeki
was removed in September 2008 as the country's president.
Corporate recruiters hope that the global recession might
encourage some South Africans to consider returning home.

Source, International Herald Tribune, Dec 1, 2008


SATAWU Blames ANC for Possible Bus Industry Collapse
-------------- --------------

14. SATAWU reported that bus operators no longer had the funds
to pay staff wages because of the ANC government's failure to
pay monthly transport subsidies. SATAWU said the collapse of
the bus sector is imminent and will cause both `chaos' and a
`social crisis.' The union spearheaded an urgent application by
the South African Bus Operators Association in the Pretoria High
Court that calls for the government to pay the 1.2 billion Rand
owed. SATAWU plans to call a national day of action jointly
with COSATU if the court bid fails. Wage negotiations in the
sector have been put on hold pending resolution of the crisis.
Source: Business Day, January 29, 2009


PASSEN