In his State of the Nation address in Cape Town last Friday President Thabo Mbeki made clear that the ANC government would not tolerate workers' opposition to its plans to offer South Africa as a low-wage investment platform for transnational corporations.
Since coming to power, the ANC has relied on the South African Communist Party (SACP) and trade unions to control the working class. This is becoming increasingly difficult. Last year saw a sharp increase in strikes, with 3.1 million days lost, compared to 2.3 million the previous year. Just one day before Mbeki's speech, British Foreign Office Minister Peter Hain, speaking in Johannesburg, warned the ANC that investors were worried about the rash of strikes in the country.
Mbeki's response to such concerns was to spell out the government's intention to impose rigorous discipline on the labour force, underlined by his outburst against the striking Volkswagen workers.
In government, the ANC has proved to represent a grasping and selfish layer of the native petty bourgeoisie, who have enriched themselves over the past six years of ANC rule and aspire to become the agents of international capital.
Source: World Socialist Web
Thursday, February 10, 2000
Sunday, February 6, 2000
South African Leader Warns Unions Not to Impede Development
In his sharpest challenge yet to South Africa's powerful trade unions, President Thabo Mbeki vowed today to relax restrictive labor laws, speed the pace of privatization and reduce spending in the bloated public sector. Addressing Parliament in his first state of the nation speech, Mr. Mbeki highlighted the country's brightening economic fortunes and signaled that his government would publicly battle the unions if they stood in the way of desperately needed foreign investment and growth.
Since 1994, when South Africa elected its first black government, inflation has fallen to 5.2 percent from 12.5 percent, he said. Foreign reserves, which stood at $5.2 billion last year, have surged to $7.4 billion. And the economy, which experts say grew by less than 1 percent in 1999, is expected to grow by at least 6 percent during the next two years. Mr. Mbeki said the nation needs such growth to tackle the daunting challenges of poverty and unemployment. And he warned that he would not allow organized labor -- which has long supported Mr. Mbeki's party, the African National Congress, but opposes its fiscally conservative policies -- to threaten such growth. ''Jobs, a better life for our people in the context of a growing economy and our standing in the eyes of the investor community cannot be held hostage by elements pursuing selfish and antisocial purposes,'' he said. He did not say which labor laws would be changed, nor did he indicate which government agencies might be privatized next. But his remarks, which were applauded by opposition parties and business leaders here, were clearly made with an eye to investors abroad, who have complained about South Africa's tough labor laws, which make it difficult to transfer, reassign or fire employees.
And just six months into his presidency, Mr. Mbeki seemed determined to show the world that he would take the necessary steps to liberalize the economy, even if that meant antagonizing his old allies in the anti-apartheid struggle. Mr. Mbeki first signaled his willingness to challenge the unions last summer when he refused to give public sector workers the salary increases they wanted, saying the country could not afford it. The decision touched off weeks of strikes and protests. But it did not hurt the government's approval ratings, which have improved during the last year -- driven by increasing optimism about the economy.
But the challenges facing South Africa are enormous. Unemployment stands at nearly 40 percent by some estimates, and the economy has lost at least 500,000 jobs in the last five years. About three million people still need housing, 7.5 million lack access to running water and 21 million go without sanitation services. An estimated 3.6 million of this nation's 44 million people are believed to be infected with H.I.V., the virus that causes AIDS. And crime rates are among the highest in the world.
The Congress of South African Trade Unions, which began a campaign of protests this week to highlight job losses, says the government needs to create more jobs and to help ordinary people. The organization found little comfort in Mr. Mbeki's remarks. Responding to his speech, officials at the South African Municipal Workers Union said they feared that the hasty restructuring of state assets would only result in more pain for the poor. ''This cannot be achieved by following the pattern so far, which has been to slash jobs and privatize assets in the drive for a 'lean and mean' state,'' the union officials said.
Source: New York Times
Since 1994, when South Africa elected its first black government, inflation has fallen to 5.2 percent from 12.5 percent, he said. Foreign reserves, which stood at $5.2 billion last year, have surged to $7.4 billion. And the economy, which experts say grew by less than 1 percent in 1999, is expected to grow by at least 6 percent during the next two years. Mr. Mbeki said the nation needs such growth to tackle the daunting challenges of poverty and unemployment. And he warned that he would not allow organized labor -- which has long supported Mr. Mbeki's party, the African National Congress, but opposes its fiscally conservative policies -- to threaten such growth. ''Jobs, a better life for our people in the context of a growing economy and our standing in the eyes of the investor community cannot be held hostage by elements pursuing selfish and antisocial purposes,'' he said. He did not say which labor laws would be changed, nor did he indicate which government agencies might be privatized next. But his remarks, which were applauded by opposition parties and business leaders here, were clearly made with an eye to investors abroad, who have complained about South Africa's tough labor laws, which make it difficult to transfer, reassign or fire employees.
And just six months into his presidency, Mr. Mbeki seemed determined to show the world that he would take the necessary steps to liberalize the economy, even if that meant antagonizing his old allies in the anti-apartheid struggle. Mr. Mbeki first signaled his willingness to challenge the unions last summer when he refused to give public sector workers the salary increases they wanted, saying the country could not afford it. The decision touched off weeks of strikes and protests. But it did not hurt the government's approval ratings, which have improved during the last year -- driven by increasing optimism about the economy.
But the challenges facing South Africa are enormous. Unemployment stands at nearly 40 percent by some estimates, and the economy has lost at least 500,000 jobs in the last five years. About three million people still need housing, 7.5 million lack access to running water and 21 million go without sanitation services. An estimated 3.6 million of this nation's 44 million people are believed to be infected with H.I.V., the virus that causes AIDS. And crime rates are among the highest in the world.
The Congress of South African Trade Unions, which began a campaign of protests this week to highlight job losses, says the government needs to create more jobs and to help ordinary people. The organization found little comfort in Mr. Mbeki's remarks. Responding to his speech, officials at the South African Municipal Workers Union said they feared that the hasty restructuring of state assets would only result in more pain for the poor. ''This cannot be achieved by following the pattern so far, which has been to slash jobs and privatize assets in the drive for a 'lean and mean' state,'' the union officials said.
Source: New York Times
South African Leader Warns Unions Not to Impede Development
In his sharpest challenge yet to South Africa's powerful trade unions, President Thabo Mbeki vowed today to relax restrictive labor laws, speed the pace of privatization and reduce spending in the bloated public sector. Addressing Parliament in his first state of the nation speech, Mr. Mbeki highlighted the country's brightening economic fortunes and signaled that his government would publicly battle the unions if they stood in the way of desperately needed foreign investment and growth.
Since 1994, when South Africa elected its first black government, inflation has fallen to 5.2 percent from 12.5 percent, he said. Foreign reserves, which stood at $5.2 billion last year, have surged to $7.4 billion. And the economy, which experts say grew by less than 1 percent in 1999, is expected to grow by at least 6 percent during the next two years. Mr. Mbeki said the nation needs such growth to tackle the daunting challenges of poverty and unemployment. And he warned that he would not allow organized labor -- which has long supported Mr. Mbeki's party, the African National Congress, but opposes its fiscally conservative policies -- to threaten such growth. ''Jobs, a better life for our people in the context of a growing economy and our standing in the eyes of the investor community cannot be held hostage by elements pursuing selfish and antisocial purposes,'' he said. He did not say which labor laws would be changed, nor did he indicate which government agencies might be privatized next. But his remarks, which were applauded by opposition parties and business leaders here, were clearly made with an eye to investors abroad, who have complained about South Africa's tough labor laws, which make it difficult to transfer, reassign or fire employees.
And just six months into his presidency, Mr. Mbeki seemed determined to show the world that he would take the necessary steps to liberalize the economy, even if that meant antagonizing his old allies in the anti-apartheid struggle. Mr. Mbeki first signaled his willingness to challenge the unions last summer when he refused to give public sector workers the salary increases they wanted, saying the country could not afford it. The decision touched off weeks of strikes and protests. But it did not hurt the government's approval ratings, which have improved during the last year -- driven by increasing optimism about the economy.
But the challenges facing South Africa are enormous. Unemployment stands at nearly 40 percent by some estimates, and the economy has lost at least 500,000 jobs in the last five years. About three million people still need housing, 7.5 million lack access to running water and 21 million go without sanitation services. An estimated 3.6 million of this nation's 44 million people are believed to be infected with H.I.V., the virus that causes AIDS. And crime rates are among the highest in the world.
The Congress of South African Trade Unions, which began a campaign of protests this week to highlight job losses, says the government needs to create more jobs and to help ordinary people. The organization found little comfort in Mr. Mbeki's remarks. Responding to his speech, officials at the South African Municipal Workers Union said they feared that the hasty restructuring of state assets would only result in more pain for the poor. ''This cannot be achieved by following the pattern so far, which has been to slash jobs and privatize assets in the drive for a 'lean and mean' state,'' the union officials said.
Source: New York Times
Since 1994, when South Africa elected its first black government, inflation has fallen to 5.2 percent from 12.5 percent, he said. Foreign reserves, which stood at $5.2 billion last year, have surged to $7.4 billion. And the economy, which experts say grew by less than 1 percent in 1999, is expected to grow by at least 6 percent during the next two years. Mr. Mbeki said the nation needs such growth to tackle the daunting challenges of poverty and unemployment. And he warned that he would not allow organized labor -- which has long supported Mr. Mbeki's party, the African National Congress, but opposes its fiscally conservative policies -- to threaten such growth. ''Jobs, a better life for our people in the context of a growing economy and our standing in the eyes of the investor community cannot be held hostage by elements pursuing selfish and antisocial purposes,'' he said. He did not say which labor laws would be changed, nor did he indicate which government agencies might be privatized next. But his remarks, which were applauded by opposition parties and business leaders here, were clearly made with an eye to investors abroad, who have complained about South Africa's tough labor laws, which make it difficult to transfer, reassign or fire employees.
And just six months into his presidency, Mr. Mbeki seemed determined to show the world that he would take the necessary steps to liberalize the economy, even if that meant antagonizing his old allies in the anti-apartheid struggle. Mr. Mbeki first signaled his willingness to challenge the unions last summer when he refused to give public sector workers the salary increases they wanted, saying the country could not afford it. The decision touched off weeks of strikes and protests. But it did not hurt the government's approval ratings, which have improved during the last year -- driven by increasing optimism about the economy.
But the challenges facing South Africa are enormous. Unemployment stands at nearly 40 percent by some estimates, and the economy has lost at least 500,000 jobs in the last five years. About three million people still need housing, 7.5 million lack access to running water and 21 million go without sanitation services. An estimated 3.6 million of this nation's 44 million people are believed to be infected with H.I.V., the virus that causes AIDS. And crime rates are among the highest in the world.
The Congress of South African Trade Unions, which began a campaign of protests this week to highlight job losses, says the government needs to create more jobs and to help ordinary people. The organization found little comfort in Mr. Mbeki's remarks. Responding to his speech, officials at the South African Municipal Workers Union said they feared that the hasty restructuring of state assets would only result in more pain for the poor. ''This cannot be achieved by following the pattern so far, which has been to slash jobs and privatize assets in the drive for a 'lean and mean' state,'' the union officials said.
Source: New York Times
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