COSATU National Treasurer, Freda Oosthuysen Input at the Human Resources Development Council Summit

Honourable Minister, Depuy Minister and all government Delegation,

All Leaders of Organized Labour- particularly COSATU, FEDUSA, SAFTU and NACTU present

Leaders of the Business constituency

Leaders of the Community Constituency

I bring warm revolutionary greetings on behalf of the Congress of South African Trade Unions (COSATU) and all its affiliates. It is both an honour and a duty to address this HRDC conference at a time when the question of a thriving working class is once again on the national agenda; not as a matter of celebration, but of defence.

For the 2nd day today, we meet to discuss education and skills development – issues that are critical to building an inclusive and thriving economy. They influence whether a young person can find decent work, whether a parent can provide for their family and whether an economy can grow and industrialise. This discussion is especially important given our context of very high unemployment, ongoing retrenchments, inequality, poverty and stagnant growth. We are facing an investment strike in the country – and while capital is sitting on trillions in financial reserves, manufacturing continues to decline.

We have seen high levels of retrenchment across sectors such as mining, metals and engineering, automotives, clothing and textiles, chemicals and construction. We face challenges of exploitation and employers who continue to disregard basic human rights such as dignity- all because poverty and unemployment have created a highly contested space employment; in whatever form.

Those who are fortunate enough to be employed, face a range of challenges. One key problem is the continued undermining of labour laws by certain businesses, departments and municipalities.  We have a crisis of non-compliance to the National Minimum Wage, companies and municipalities not paying workers statutory contributions such as UIF and other benefits towards retirement funds.

We note and welcome the energy of the Deputy Minister of the Department of Employment and Labour, Mr Sibiya, to increase inspections and the departments visibility on these issues. We must ensure that those who disregard labour laws and regulations are punished whilst simultaneously rooting out corruption in the public and private sector.

In the late 1980s and early 1990s labour advocated for HRD strategies in adult education, schooling, skills development and higher education. We cannot expect to play a lesser role as labour – but we submit- with concern- that the current strategy has been developed without proper engagement with labour. This is not right. It cannot be correct to over-emphasise and prioritise inputs from within government and from academics while overlooking labour and other stakeholders whose constituency will be most affected. You cannot have a discussion on that touches Human Capital without them in the room.  

Labour learnt of the Mandatory Grant increases from the President’s State of the Nation Address this year. This is extremely disappointing – there had not been prior consultation and engagement through NEDLAC, where Labour and Civil society also sits. Over the last few year, the DHET has not, in fact, engaged on their policy proposals through NEDLAC.

COSATU’s view is that the HRDC should be driven by all social partners and we hope government will engage social partners in a structure and on-going process going forward.Let me give a practical example – we note from the document that consultation had taken place with the SETA Forum – we would have expected that consultation take place with SETA Board representatives, which include Labour, to ensure that our views were heard.

COSATU observes a number of weaknesses in the HRD Strategy Document. Firstly, we need a more labour market focused HRD strategy – where we first train the existing workforce to work smarter and align this with clear decision-making, better grading and better pay. This enables company growth to keep the current workforce whilst employing more people.  We also call for greater inclusion in the main program- of women and people differently abled.

We call on the Department of Higher Education and Training, to intensify their revolutionizing TVETS and making them fashionable again. TVETs must receive the necessary support to ensure that produce graduates suitable and ready for the world of work. Noting the crisis we often see at the start of the Higher education academic year, we further implore DHET to consider building more TVETs across the various provinces. This, will curb the issue of our children matriculating but being unable to further their education due to space constraints in institutions of Higher Education and training.

We are opposed to the perpetual abuse of the Youth Employment Tax Incentive scheme and we need better Work Integrated Learning programmes. This is a long-term undertaking – work readiness programmes should start at the Early Childhood Development phase of education.

A second area we raise is the need for more centralised skills planning between industry, government departments, municipalities and labour. Our planning must not only strengthen skills in companies, but we also need to strengthen skills in sectors so that both public and private sector are able to effectively deliver services for communities and businesses.

A third area we wish to highlight relates to an economy that is prepared and ready for the graduates and incoming work force. We continue to unequivocally advocate for education and upskilling, in the same breathe however, we implore discussions and strategies for absorption of this incoming workforce. South Africa’s unemployment crisis is not merely a lack of skills issue, it is an issue of lack of jobs.

The skills are there, absorption is not. We implore the HRDC that in its strategies and working groups, it allocates a slot strictly to engage on job creation- across all sectors.

Lastly, we implore the HRDC and all stakeholders to engage on Just Transition in the changing world of work- both at the level of upskilling and job creation. Moving to a low carbon and climate resilient economy requires us all, across sectors to actively participate in ensuring no one is left behind.

Labour calls for the following to guide the HRDC and its strategies:

1.Labour Law compromise, relaxation or deviation is not, and will never be, a solution or even an option in the discussion of the HRDC

2. Basic schooling that adheres to the minimum norms and standards of School Infrastructure is an imminent necessity;

3. We need a well-funded (beyond the 1% Skills Levy) post school education system where TVETs have capacity for more learners, even surpassing universities, parallel with a well-funded community education component focusing community needs and skills

4. We need an HRD Strategy that is always linked to proper and extensive social dialogue,

5. Lastly, let the discussions not only be skills focused but also on creating an economy that is able to absorb these individuals at the rate which matches the completion/graduation stats of the learners.

Let us recommit ourselves to a vision of South Africa that is alive, radical, enforceable and just. The future demands it.

We are not here to merely make speeches nd have dialogue. We are here to make them work for South Africans. Because practise that does not protect its society is not justifiable nor is it equitable. It is a system of organised abandonment.

COSATU Thanks You.