The issue of social security reform and specifically retirement fund reform have been topical focus areas with the Federation for the past years.  Most recently, a FEDUSA delegation met with National Treasury to discuss progress on the matter when rumours of the release of a further document came to the fore.

“Our Retirement Reform Task Team met with National Treasury on 16 April [2012] after an urgent call to Minister [of Finance] Gordhan.  The Minister gladly availed one of his directors to meet with us in Pretoria, and we discussed various issues relating to the process.  Of course, the main thrust of our discussions was to remind Treasury of the need to table these planned changes at NEDLAC [the National Economic Development and Labour Council] so that we can make the necessary inputs,” explained FEDUSA General Secretary Dennis George.

FEDUSA previously joined its sister federations (Cosatu and Nactu) in condemning the apparent secrecy and unilateralism displayed by Treasury in this regard.  Following the third NEDLAC (National Economic Development and Labour Council) Labour Constituency Retirement Funds Conference held on 4 and 5 April 2011 in Rustenburg, FEDUSA was “extremely disappointed in the unilateral approach and paternalistic attitude displayed by government in dealing with this very important matter”.  While the Federation supported the principle of social security reform in South Africa, it then warned against a haphazard implementation of changes that might lead to unexpected consequences.

“We have come a long way since Rustenburg,” said George.  “We are pleased that Treasury listened to us and decided to become more transparent on the matter by tabling the documents for further deliberations.  We will certainly deploy all our resources to actively participate in this process through NEDLAC”, he added.

The first discussion paper was released in November 2004 and Government introduced two key discussion papers from Department of Social Security and Treasury in 2007 with significant proposals on a social security fund, a National Social Security Fund, and the transformation of the retirement funds sector.

After the release of these documents, various problems were experienced, such as the lack of clarity on the status of the various government documents, which were mutually inconsistent, and competing mandates within Government, and between government departments.  Government undertook to resolve these issues, and to revert to the NEDLAC process in 2007.  There have been repeated delays and promised documents, while intergovernmental task team deliberations have been seemingly endless, and the undertakings to revert back had not materialised until now.

“The biggest risk with these things is that workers start doubting the future of the hard-earned savings in pension funds”, argued George.  “We then run the risk that they might address their fears by resigning from their jobs to get their lump sums with short-term positive yields, only to face the medium to long-term problems of giving up their years of service in return”, he explained.

“We call on our members and South African workers in general to trust the institutions of our country – such as NEDLAC.  We urge them not to make premature decisions about their future until the process has followed its course and we have had our opportunity to engage.  We will participate in these processes through social dialogue to ensure a responsible process to follow.  Our first step would be to convene an urgent meeting of our Retirement Reform Task Team and other interested parties, to consider the documents and arrive at a sound Federation position to be tabled at NEDLAC.  Our NEC resolved to invite Treasury to present their document so that we may hear it from the horse’s mouth before starting our internal deliberations”, concluded George.

- ENDS -

FEDUSA is the largest politically non-aligned trade union federation in South Africa and represents a diverse membership from a variety of sectors in industry.  See www.fedusa.org.za for more information.

For more information:

Dennis George (General Secretary)

084-805-1529

Krister J van Rensburg (Deputy General Secretary)

082-444-4548

“While the survey reports that the number of persons in the labour force increased by 207 000 since the fourth quarter of 2011, overall employment decreased by 75 000 for people between the ages of 15 and 65,” stated FEDUSA General Secretary Dennis George.

“Although we are well-aware that these figures normally rise after the seasonal gains of the December festive season, it is of great concern that both the formal and informal sectors showed serious declines of 107 000 and 28 000, respectively.  Most hard-hit were the manufacturing, construction and social services sectors, while we are glad to see the growth in the agricultural sector (26 000) and private households (33 000)”, added George.

Looking at employment per province, it is obvious that provinces like the Eastern Cape (47 000) and KwaZulu-Natal (43 000) were worst-hit, while the Free State (16 000), Mpumalanga (10 000) and the Northern Cape (5 000) also lost much-needed jobs.  Obviously this looks better when compared to the same time last year, but there were still relative decreases in the Eastern Cape (46 000), Free State (43 000) and North-West (18 000).

“In order for our economy to grow, it is essential that jobs are created in all the provinces and not only the economic hubs like Gauteng”, said George.  “Our country has a serious problem with rural integration in the economy, and as we have previously stated, much more needs to be done to advance rural development”, he added.

“We are pleased to see the growth of 290 000 jobs in the formal sector in the first quarter, and we hope to see this figure rise more towards the end of the year.  Where the informal sector was previously seen as a site for growth, we are concerned to note the successive contraction in this sector since the third quarter of last year”, said George.

In terms of employment by occupation, FEDUSA members were also affected in that the jobs for managers, clerks and machine operators decreased significantly.  However, FEDUSA is pleased to note the year-on-year growth in clerical jobs (78 000).

“In line with our campaigns for decent work, we are cautiously pleased by the access to benefits such as medical aid that rose very slightly by half a percentage point, year-on-year.  It is also good to see the marginal improvement of 2,5% in permanent jobs since the first quarter of 2008”, he added.

Although the overall level of unemployment declined late last year, it is of great concern that we now again reach the peak of 4,5 million as experienced early in 2011.  Women have always been more likely to be unemployed than men, and this trend continues with women being 2,1 times more affected than men.

Unemployment rose for coloureds (2,8%), black Africans (1,4%) as well as Indians (0,8%), while there was a slight decrease of 0,6% amongst whites.  However, when compared with the same time last year only the Indian/Asian group showed a year-on-year decrease in unemployment of 2,4%.

“FEDUSA has made several proposals to our social partners to address unemployment over the past years.  These include providing a better environment for the establishment and maintenance of Small, Micro and Medium Enterprises (SMMEs), focusing on unemployment and not only inflation targeting when considering monetary policy, and identifying key private sector growth areas with maximum export-driven potential.  We would also like to see the serious skills shortages and skills mismatches in our labour market to be addressed as a matter of priority, so that we can have the right skills to make our economy grow sufficiently to create more decent jobs”, concluded George.

- ENDS -

FEDUSA is the largest politically non-aligned trade union federation in South Africa and represents a diverse membership from a variety of sectors in industry.  See www.fedusa.org.za for more information.

For more information:

Dennis George (General Secretary)

011-279-1800

084-805-1529

Krister Janse van Rensburg (Deputy General Secretary)

082-444-4548

Left to Right: James Lefika (Provincial Secretary), KE Bila (Provincial Chairperson), Godfrey Selematsela (Deputy President), Dennis George (General Secretary)

Statement by General Secretary Dennis George to the May Day Rally held in Polokwane, Limpopo on 1 May 2012.

As we celebrate Workers’ Day, we reflect on our achievements and the many challenges that workers in our country face.

Workers are the lifeblood of our economy; we contribute every day by keeping the economy going forward. We contribute by paying VAT, PAYE and municipal taxes. We expect government to spend our taxes wisely on projects that will create a better life for the less fortunate in our society and for the poor. We expect government to spend the taxpayers’ contribution on quality education, on health, and to provide a safe environment, free from crime and corruption.

We are concerned that our education system does not produce high quality and knowledgeable workers, who are able to solve complex problems. Our universities and FET colleges are overcrowded, and our pass rate is very low if compared with other African countries.

Our SETAs do not produce enough artisans to reach the annual target of 30 000 highly skilled artisans. Why was it possible for the apartheid government to produce a sufficient number of artisans, but the democratic government does not have the ability to take young people and give them the adequate training to turn them into highly skilled productive workers that can add value to the economy?

FEDUSA has sought to help our government by committing to training about 6000 artisans over the next five years. The UIF has made 50% of the total costs available to train unemployed young people to become artisans. But, unfortunately, our higher education department is not willing to fund the remaining 50% of the programme costs.

Our health system was allowed to deteriorate to such a state that our hospitals and clinics are dirty, run – down and health workers are demotivated. Our health institutions, which have the responsibility to keep workers and our people healthy are badly managed and without the necessary medicines and equipment to function efficiently. FEDUSA is of the view that this is a direct result of the ruling party’s policies of comrade deployment. Our qualified health management professionals were forced to leave our health system. These highly skilled workers were head-hunted and recruited by countries like Australia, New Zealand and the U.K. We support the principle of a negotiated national health insurance system that is negotiated by the social partners in NEDLAC.

We also support the proposal of a National Social Security Retirement System which is very important for our people to provide for old age retirement, disability and death. It will also help us to improve our savings which is necessary to be used as investment for infrastructure and economic development. Many workers are cashing in their pension and provident funds to pay for short-term acquisitions. These workers will be faced with the major problem of not having enough income when they go on retirement.

FEDUSA would like to propose that the Minister of Finance tables the social security proposal at NEDLAC as soon as possible so that negotiations can be completed before the end of 2012.

As you might know, FEDUSA is actively involved in many processes on national and international levels.  We eagerly participate in international forums such as the International Labour Organisation (ILO) and Organisation for Economic Cooperation and Development (OECD).

At national level, apart from our regular bilateral meetings with ministers and other officials, our main arena of activity is NEDLAC – the National Economic Development and Labour Council.  NEDLAC is the most important forum where trade unions can engage around issues affecting workers.  Part of this work includes new legislation and amendments to current legislation.

An example of this legislation is the recent processes of amending the two most important labour laws, namely the Labour Relations Act and Basic Conditions of Employment Act.  Many of you would have followed these developments with great interest due to the long-awaited regulation of temporary work, and specifically the eradication of the abusive practices of labour brokers.

Comrades and colleagues, we as FEDUSA have consistently called for the abusive practices of labour brokers – who act like modern-day slave traders – to be abolished!  All workers must be allowed to have decent jobs, receive decent wages and enjoy decent benefits!

We are glad to report that the draft new legislation incorporated a lot of our initial demands, such as the ever-important principle of “equal work for equal pay” and the definition of an employer.  We are hopeful that the new legislation should be in place early in 2013.

Another significant engagement process we actively participate in, is the New Growth Path leadership discussions.  This very ambitious plan suggests the creation of 2 million new jobs every year until 2020. This requires an annual growth rate for the SA economy of at least 7%. The growth can therefore not just take place in the urban economic centres like Gauteng and KwaZulu-Natal, but requires economic development also in the underdeveloped rural areas and poorer provinces. Local procurement has to play a key role if our employment goals are to be reached.

Since rural areas often lack skilled workers and cannot make use of economies of scale, agriculture has to play an important role. Given the increasing shortage of water in many rural areas such growth requires green infrastructure investments from the government and investments in more efficient water usage especially of farmers. This modernisation can also be used to improve the working conditions in the agricultural sector.

It was therefore a very apt choice to make our theme for this year’s May Day celebrations Agriculture and Decent Work for Social Progress and Prosperity. This theme encapsulates FEDUSA’s commitment to investing into the agricultural sector through the means of skills development, education and training, while simultaneously incorporating the important issues of casualisation of labour, job losses and social security.

The agriculture sector has always been a labour-intensive sector, and in line with South Africa’s New Growth Path and FEDUSAs Building Blocks Document, the sector is now being targeted as one of the three primary sectors in which to increase economic growth and create employment for our workers.

The National Growth Path (NGP) targets opportunities for 300 000 households in agricultural smallholder schemes plus 145 000 jobs in agroprocessing by 2020. It also importantly acknowledges the potential to upgrade conditions for 660 000 farm-workers.

Strategies that are outlined to achieve such targets include restructuring land reform to support smallholder schemes; upgrading employment in commercial agriculture, especially through improved worker voice; measures to support growth in commercial farming while supporting national food security; acceleration of land claims processes and better support to new farmers following land-claims settlements.

FEDUSA aims to support efforts made nationally in this regard and hopes that through positive investment into the sector, the exploitation of labour that is often associated with the sector is eradicated, and that those working in the rural and informal sectors receive the opportunity to enter the formal sector and operate under the much-valued conditions of decent work.

Furthermore South Africa’s National Development Plan foresees that by 2030, economic participation in rural areas will rise from 29 percent to 40 percent as a result of raising employment through a rural development strategy that focuses on raising agricultural output, providing basic services, supporting small farmers, broadening land ownership and investing in water, transport, and other network infrastructure. A well implemented strategy to boost agricultural output could create up to 1 million jobs by 2030.

Traditionally the sector has favoured large commercial farms and constrained entry and expansion of small farmers, allowing for the exclusion or exploitation of small scale farmers and farm workers respectively. However, agriculture remains one of the most labour intensive goods production sectors, with substantial employment linkages and resources are not being used sensibly in order to implement significant employment creation.

On May Day 2012, FEDUSA supports the goals of the NGP, and commits to playing an active role as organised labour in the achievement of these goals. The neglect of agriculture speaks to the neglect of rural communities, and so in focusing on the sector this May Day FEDUSA hopes to create awareness around the possibilities for growth and obvious benefits for workers within the sector. It also hopes that through being an active partner in achieving these goals, that the unacceptable practices that have until now been rife in the sector, are not only eliminated, but prevented from reoccurring.

We call on all workers to celebrate with us the most important day for workers – May Day.  We hope that you have enjoyed the day thus far and we trust that you will enjoy the rest of our programme and have a safe journey home.

Viva FEDUSA, viva!

Viva South Africa, viva!

Viva Workers of the Land, viva!

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The FEDUSA May Day celebrations will commence at 10h00. The programme will include addresses made by Member of the Polokwane Mayoral Committee, Phorone Modikoa, Phaswane Tladi  from the Limpopo Department of Labour and FEDUSA leadership, as well as taking the opportunity on this Worker’s Day to remember those workers who have died or been injured in the workplace.

Date:                Tuesday, 01 May 2012

Time:               10h00

Venue:             Seshego Stadium