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The Tripartite Alliance and Privatization:

BACKGROUND

The Congress of South African Trade Unions (Cosatu)^eh opposes privatization because it deregulates the industries, creating fewer jobs and less control over wages, and makes commodities such as electricity, water, and communications inaccessible.  The African National Congress (ANC)^eh proposes privatization and neo-liberal reform as a solution to poverty that will bring in foreign money and empower historically disadvantaged groups within South Africa by creating more jobs and bolstering the economy.  The tripartite alliance—these two organizations plus the South Africa Communist Party—cannot agree over this crucial point of privatization, and some within the alliance believe the only way to create lasting change in South Africa is to create further ties between the three groups and compromise on the issue of privatization.  Others, primarily in Cosatu, refuse to give in to the ANC’s new fiscal policies, holding strikes and calling for legislative change.  Cosatu and SACP will never win by further allying with ANC as the ANC will continue to control them because they control the South African government.

 The reluctance of the ANC to actually work with Cosatu and SACP is shown through the events after the most recent elections.  Cosatu put its faith in ANC, agreeing on the ANC’s campaign platform that did not include privatization among its state reform, garnering support among its workers for ANC candidates, however they have been disappointed after the elections.  The ANC has continued in its privatization campaign without regard for Cosatu’s anti-privatization position.[eh1]  Though the ANC is strongly pro-privatization, they concurrently oppose job cutbacks, creating inter-party conflict where some believe job retention to be more important, and others preference privatization.[eh2]  When this conflict arose over Telkom, a once-public communications company, ANC continued with its partial privatization of the company and its full commercialization, showing their commitment to privatization.[eh3]  Just after privatization however, ANC had to maneuver itself politically in order to not lose the support of their two alliance partners and the electoral power they hold, by fighting job losses at Telkom caused by their privatization.  It is striking that the alliance remains together, given political differences such as this.  Similarly, while the ANC maintains that this privatization will benefit the working poor who will be able to invest in their own companies, Cosatu claims that it will hurt the workers because there will be fewer jobs[eh4], and SACP focuses on the fact that it will simply benefit a small black elite.[eh5]

For Background on Key Players Involved, Click Here^eh

STRIKES

To resist privatization, Cosatu does two things.  The first is holding labor strikes of their more than 1 million members.  These strikes are more affective in certain industries—such as ports and automobile—however Cosatu systematically claims their success, and the government and media tries to quiet their impact, diminishing the validity of the movement. 

The impact of the general strike is reflected in government’s agreement to take some action on food prices, social security and inflation targeting, as well as the resolutions of the ANC policy conference.[eh6]

--(Declaration of the Cosatu Central Executive Committee on the Political Challenges Facing the Federation)

For Further Discussion About Cosatu’s Strikes, Click Here^eh

POLITICAL ALLIANCE

Cosatu’s second political tactic involves its alliance with the ANC.  Cosatu has committed to informal and formal agreements with the ANC—agreements that allowed ANC to win more positions in elections, and help Cosatu to have leverage with the party in power.  In the most recent pledging of electoral support, Cosatu will create a pact and election manifesto with the ANC to ensure that they are not taken advantage, with ANC continuing to privatize after winning elections, as has happened before.[eh7]  Given the track record that exists between the ANC and Cosatu in terms an alliance of differences, and ANC’s position of power within the alliance, Cosatu will hold little power, even with the creation of a pact and manifesto.[eh8]  Their primary power instead lies in protest and striking, and in their separation from the alliance with the ANC.

Within the alliance, tensions between the ANC and Cosatu have created tensions within the two parties, and also with SACP, further complicating the relationship.  In the last months of 2002, the alliance hit the roughest patch it had seen in a while, with both Cosatu and SACP discussing whether to disassociate with the alliance.[eh9]  Neither party decided to formally oppose the ANC because of splits within their own organizations over how to best achieve their goals under an ANC led government.  A part of SACP, though once considering disassociation and previously taking the side of Cosatu and anti-privatization, is now allying slightly closer to the ANC, with the ANC actively trying to draw the SACP to their side in the battle with Cosatu.  At first, SACP resisted[eh10], now members of SACP are campaigning as ANC party members for the next set of elections, while either no Cosatu members were nominated to run, or none agreed to do it.[eh11]  SACP’s recent distancing from Cosatu does not signify a dismissal of commitment against privatization, however it does suggest that they are more willing now to work with the ruling party to hopefully gain concessions on their party positions.

The relationship between the organizations is represented by the way they have interacted in the planning of the alliance’s upcoming Growth and Development Summit.  Cosatu refuses to shelve the issues of AIDS/HIV treatment plans, and privatization of state interests, however the ANC led government insists on discussing price stability, investment, job creation, social equity and black economic empowerment, all benefits they claim of privatization.[eh12]  The two organizations cannot reach a decision about this major disagreement, however ANC will undoubtedly win this argument, as they control the government that will fix the agenda.  Cosatu’s interests will once again be deferred.  ANC representatives are meeting with other organizations—namely Fedusa^eh—to inform them about the summit while they ignore the demands of Cosatu.[eh13]

Though some within the alliance describe the relationships as improved from the fall of 2002, they are still in a tenuous position.  Agreements were thought by many to have been made surrounding the Growth and Development Summit, but now it seems even these unions are dissipating.[eh14]  Cosatu has taken their strikes back up and again appears to be moving away from the ANC led alliance in their refusal to back down on privatization.  Only in this way can Cosatu continue to exert pressure upon the ANC to impede privatization.  If the SACP and Fedusa ally themselves closer to the ANC however, the ANC will be strong enough to continue their neo-liberal economic reform, even in the face of mass strikes by Cosatu.

Congress of South African Trade Unions (Cosatu)

African National Congress (ANC)
 

South Africa Communist Party (SACP)

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 Countries >  South Africa