The Congress of South African Trade Unions (COSATU) held its third Central Executive Committee (CEC) meeting for 2024 from 26 to 28 August and deliberated on the various critical challenges facing the working class as the economy continues to struggle.
Unemployment has been on the rise in the last three quarters and currently sits at 42.6%. Poverty and inequality remain stubbornly high as the cost-of-living increases.
The CEC took place during Women’s Month and while it is a time to recognise the gains, it is critical to note that women are still confronted by many struggles, including endemic levels of gender-based violence, sexual harassment and unfair discrimination in the workplace and communities.
In 2019, after extended campaigns by trade unions and women workers globally, the ILO adopted Convention 190 concerning the Elimination of Violence and Harassment in the world of work. This is the first international treaty that explicitly recognises the right of everyone to a world of work free from violence and harassment.
Whilst we applaud progress made to advance these struggles in law, including the overhauling of our criminal laws, the Employment Equity and Compensation of Occupational Injuries and Diseases Acts, much more must be done collectively to ensure their full enforcement and compliance by all.
In light of this, the Federation has committed itself to protecting vulnerable persons at work including women.
COSATU is determined to navigate unchartered waters to ensure that the government of national unity (GNU) delivers services to citizens, guided by our ally, the ANC’s manifesto as leader of government and that it protects the hard-won rights of workers and the transformation agenda.
The CEC affirmed the importance of rebuilding and reconfiguring the Alliance with the ANC and South African Communist Party and ensuring the ANC-led government, delivers to workers and the working-class communities as we prepare for the 2026 local elections.
We applaud the tremendous progress in rebuilding Eskom and celebrate the milestone of 150 days without loadshedding. The nation appreciates the hard work of Eskom’s employees. We are, however, deeply concerned about and opposed to the 2025 proposed electricity tariff hike of 36%, on top of the 2024 12,5% increase. We urge NERSA not to allow this to proceed as it will be a devastating blow to working class communities.
Whilst most of the country enjoys uninterrupted power, some communities are forced to contend with load reduction due to vandalism of the power infrastructure. Eskom needs full support from the state to restore and secure this infrastructure.
The Federation is encouraged by progress being made to rebuild Transnet and Metro Rail. A well-functioning Transnet will unlock the mining, manufacturing and agricultural sectors; whilst a re-established Metro Rail will provide working class commuters with an affordable, reliable mode of transport to and from work. Both entities need financial and security support if they are to accelerate the turnarounds underway.
Government needs to equip municipalities and the state by filling critical vacancies, hiring police, nurses, teachers, community healthcare workers, etc. to ensure delivery of quality public services that communities need. The Auditor General’s latest findings point to a deteriorating local government in dire need of critical skills. Government needs to move with speed and put urgent measures in place to stabilise and rebuild this layer of governance. Paying municipal workers on time must be made a priority.
The war on crime and corruption will only be won if extra funding is allocated to the South African Police Service, the National Prosecuting Authority and other law enforcement agencies. We are encouraged when monies that have been syphoned off from the state are recovered by entities such as the Special Investigating Unit.
As we prepare for the Medium-Term Budget Policy Statement (MTBPS), COSATU calls on government to turn its back on austerity and put resources into fixing the state and stimulating the economy.
National Day of Action
On 7 October, COSATU and its Affiliates will hold a National Day of Action commemorating the International Day of Decent Work and to raise our grievances against austerity, rampant retrenchments, the rising cost of living and the relentless attack on collective bargaining, demonstrated by employers reneging on signed wage agreements. The day signals our commitment to ensuring amendments to labour laws strengthen worker’s protections not weaken them.
The CEC has resolved to mobilise civil society and all fronts that support the People’s Budget, and in this regard the biggest demonstration will be held in Parliament when the Minister of Finance Enoch Godongwana presents the MTBPS.
The Federation will join hands with FEDUSA, NACTU and SAFTU on the day. We also call upon other progressive civil society organisations to join in on the action.
COSATU and its Affiliates will launch build up activities towards 7 October to mobilise workers to support the action for their benefit. Details of how the day will unfold will be announced closer to the time.
Critical Progress on Advancing Workers’ Rights
COSATU signed the Presidential Health Compact on behalf of organised labour to signify its commitment to the NHI Act. The Federation is ready to work with government to move to the next phase of implementation on the roadmap to universal healthcare.
In the pursuit of widening the social security net for working class and poor South Africans, COSATU urges government to develop a roadmap to transform the SRD Grant to a Basic Income Grant with the aim of raising it to the food poverty line in the near future.
We welcome President Cyril Ramaphosa’s assenting to the Public Procurement Act which will be a powerful tool in support of local procurement and jobs and a strategic weapon in the fight against corruption and wasteful expenditure.
We are pleased the President has signed the Companies Amendment Acts requiring listed and state-owned companies to disclose their financial reports plus the wage gap between their highest and lowest earners and what they pay the lowest paid employee. This will provide an important boost to collective bargaining and nudging employers to reduce the apartheid wage gap that remains prevalent across the economy.
The CEC welcomed work done over many years and much effort by COSATU and its Affiliates to achieve the first stage of the Two Pot Pension Reforms that will come into effect on 1 September, notwithstanding remaining areas of concern with regards to taxation and the amount of relief workers can access.
Whilst we did not achieve all that we had proposed, we are pleased that for the first time workers will have choices on how their pensions are used to serve their needs both during their careers and in retirement. Workers will no longer need to resign to access relief from their pension funds. We encourage all workers not to resign at any stage.
On 1 September, workers can access 10% up to R30 000 from their savings and once a year, a third of future savings. Workers retain full access to existing savings. Whilst this will not resolve all of workers’ debts and needs, it is a major step towards laying the foundation for further reforms to alleviate workers’ poverty and indebtedness.
COSATU has tabled further pension reforms proposals to Treasury, including allowing workers greater access to existing savings whilst boosting preservation, reducing the tax burden on low-income workers, ensuring workers retain access to all their savings when they lose their jobs and allowing workers to use their savings to fund education costs.
We are seeking an urgent meeting with Treasury and SARS to ensure a more humane approach for workers owing money to the state. We are also engaging pension funds to stop excessive administrative fees being charged for workers accessing the savings.
COSATU and its Affiliates will work with funds and government to improve financial and consumer education to protect workers from being exploited by lenders.
This is the first set of reforms to ensuring workers’ pension funds are geared to supporting workers and their families both during their working life and in retirement. We look forward to further reforms to ensure that the needs of workers are placed at the centre of this discussion and to ensure we are victorious.
The Federation is set to convene a Retirement Conference to look into further reforms of workers’ pension and provident funds.
International Solidarity
COSATU continues to be recognised by the International Labour Organisation for the role the Federation has played in defence of workers. The ILO’s Governing Body has brought a case before the International Court of Justice to compel governments across the world to respect workers’ right to strike.
CEC congratulated Venezuelan President Nicolas Madura on his third time in office. Election observers declared the poll free and fair, and as an expression of the will of the majority. Consequently, the assertion by the opposition that the election was stolen was viewed as an attempt by imperialist powers to interfere in the sovereign rights of Venezuela.
The Federation counts amongst its achievements, the recent AGOA engagements and is looking forward to the BRICS Trade Union Forum in Russia in September. We remain steadfast in solidarity with the people of eSwatini, Palestine, Cuba and Western Sahara.
Issued by COSATU.
For further comment, contact:
Solly Phetoe, COSATU General Secretary, 082 304 4055