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 
------- 
¶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