P 241531Z JUL 09
FM AMCONSUL JOHANNESBURG
TO SECSTATE WASHDC PRIORITY 6583
INFO DEPT OF LABOR WASHINGTON DC
DEPT OF COMMERCE WASHINGTON DC
SADC COLLECTIVE
AMEMBASSY PRETORIA PRIORITY 
AMCONSUL CAPE TOWN PRIORITY 
AMCONSUL DURBAN PRIORITY 
USMISSION GENEVA PRIORITY 
AMCONSUL JOHANNESBURG

UNCLAS  JOHANNESBURG 000117 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ELAB PHUM SOCI SF PREL PGOV ECON ELTN EFIN EIND
EINV, ENRG 
SUBJECT: 2009 `STRIKE SEASON' TURBULENT AND POLITICAL 
 
REF: A) 2009 JOHANNESBURG 94; B)  2009 PRETORIA 1455 
 
¶1.  (SBU) Summary.  Up to 190,000 South African municipal 
workers plan an indefinite strike from July 27 that will disrupt 
local service delivery.  The strike is being organized by the 
Congress of South African Trade Unions (COSATU) and its South 
African Municipal Workers Union (SAMAWU) affiliate over demands 
for a fifteen percent wage increase and better working 
conditions.  COSATU has boosted participation by joining with 
the Independent Municipal and Allied Trade Union (IMATU). 
Several other strikes are also ongoing or planned for `Strike 
Season, the local term used for the June to August period when 
most wage agreements are negotiated.  The strikes mark another 
escalation of demands on President Zuma from a politically 
confident labor movement that helped bring him to power.  End 
summary. 
 
Strike:  Union Wants Large Increase to Cover Inflation 
--------------------------------------------- --------- 
 
¶2.  (SBU) Up to 190,000 municipal workers plan to strike 
starting on Monday, July 27.  The action will disrupt most local 
government services but the extent of disruptions will not be 
known until the strike is underway as trade unions are still 
frantically organizing the action.  Union leaders have largely, 
but not unanimously, indicated that they will abide by the Labor 
Relations Act mandate that essential services operate at a 
minimum level during strikes.  Essential services include 
community safety, emergency services, healthcare, water, 
electricity, and the maintenance of infrastructure.  The strike 
is being organized by COSATU and its SAMWU affiliate.  They have 
joined with non-COSATU affiliate IMATU to further increase 
participation. 
 
¶3.  (SBU) SAMWU negotiations with the South African Local 
Government Association (SALGA), representing municipalities, 
came to a halt on July 23.  SAMWU demands that municipal 
employees receive the greater of a 15 percent wage increase or 
2500 Rand (approx $325).  They also demand a minimum wage of 
5000 Rand (approx $650) per month, home mortgage subsidies 
tallying 70 percent, a 70 percent rental allowance, and the 
filling of all vacant local government positions by January 1, 
¶2010.  Unions have said that the increase must cover an 11 
percent inflation rate as well as increasing prices for food and 
utilities.  SALGA countered that the demands are unaffordable 
and unrealistic because most municipalities are in debt based on 
the world financial climate.  SALGA offered an 11.5 percent 
increase on the recommendation of a labor mediator.  SALGA 
initially offered a 7.2 percent increase while SAMWU initially 
demanded 26 percent.  Negotiations broke down on July 23 with 
SALGA CEO Xolie George noting that organized labor was 
intransigent and unwilling to accept the recommendations of the 
mediator. 
 
How will the SAG React? 
----------------------- 
 
¶4.  (SBU) President Jacob Zuma urged both sides to negotiate in 
good faith given difficult global economic conditions. 
Pro-business elements in the Zuma government have been less kind 
and have publicly scolded COSATU for a number of planned or 
current strikes that all press for double-digit percentage wage 
increases.  A strike organized by the South African Chemical, 
Energy, Paper, Printing, Wood, and Allied Workers Union 
(CEPPWAWU) has entered its fifth day and is hitting the paper 
and pharmaceutical sectors especially hard.  COSATU is pushing 
for the petroleum (fuel) sector to fully join the protest. 
Other possible strikes include a national mining strike, a 
strike at state-owned Telkom, a strike by commuter train 
operators, and a strike at the South African Broadcasting 
Corporation.  Public health doctors and teachers are also 
planning to strike for a second time if the South African 
government does not implement wage increases (ref A).  These 
strikes are coupled with violent service-delivery protests over 
the government's failure to provide a basic quality of life for 
all citizens (ref B). 
 
Union Views 
----------- 
 
¶5.  (SBU) A union official told Laboroff that, while COSATU is 
perhaps overreacting to issues, such `sensitivity' is necessary 
as South Africa has no effective political opposition.  They 
believe that they must `play the revolutionary role of the 
vanguard of the working classes' to ensure that the government 
is kept `on its toes.'  Union officials concede that COSATU's 
strike action is a way of `flexing their muscles' and have said 
that this is not objectionable because it will allow COSATU to 
be taken seriously by the new administration and deliver on 
promises made to its constituency. 
 
¶6.  (SBU) COSATU General Secretary Zwelenzima Vavi told the 
press this week that low average salaries and an economic crisis 
`not of [workers] making' has caused COSATU members to demand 
rapid action.  Previous average wage increases of seven to ten 
percent were no longer able to provide workers with a basic 
standard of living because `many workers still earn close to 
2500 Rand (approx $325) and in the context of this recession, 
feel they haven't benefited from growth.'  South Africa's 
leading labor academic institution agrees.  Prominent Wits 
University Sociology Professor Eddie Webster told the business 
weekly Financial Mail on July 23 that while `strike season' is 
not unusual, it is more active because of the economic 
recession.  Webster said, `what is different is that bargaining 
is being intensified by the economic recession.  Workers are 
feeling genuinely squeezed... and shop stewards and trade unions 
face a dilemma.  If they don't meet workers' demands, they are 
seen to be sellouts and workers will go it alone without them.' 
 
Comment 
------- 
 
¶7.  (SBU) COSATU has done a good job of citing legitimate worker 
concerns in its current and planned strikes.  However, the trade 
union federation is also using the strikes to remind Zuma of its 
political power and to carry clout far above its two million 
strong membership.  COSATU continues to push for further policy 
influence and has been especially vocal on issues of fiscal 
management, nationalization of industry, and trade 
liberalization.  President Zuma has not yet spoken out about 
COSATU demands, but is aware that much of the public is behind 
any demand that is seen to offer rapid quality of life 
improvements.  End comment. 
HASKELL