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Thread: COSATU dumbfounded

  1. #1
    Site Caretaker Dave A's Avatar
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    COSATU dumbfounded

    For those who might have missed it - IMF reports doom and gloom for SA Economy.

    South Africa's structural problems are holding back growth and job creation, and leave it increasingly vulnerable to emerging risks, the International Monetary Fund warned in its 2013 country report on South Africa on Tuesday.
    In the depths of the story was an issue that's pretty close to my heart -

    The IMF said "limiting the practice of extending collective bargaining outcomes to firms that did not participate in the bargaining – especially SMEs – would increase wage flexibility and reduce barriers for entry for [small and medium enterprises]".

    But it doesn't stop there, of course. The strike culture in SA is murdering our economy, and well on the way to ruining a brighter economic future for all.

    While searching for a breaking story on BMW and their plans for their local operations in S.A. (it would seem after 8 weeks of strike related disruptions in the motor industry they've had about enough of our cr@p) which doesn't seem to have reached local news yet, I came across this story - COSATU is dumbfounded by IMF report, or more particularly, Patrick Craven is.

    The IMF released its Article IV report on South Africa on Tuesday. It was compiled after consultations between the country and the IMF between May 22 and June 4. The IMF holds bilateral discussions with its members every year. In the report, it raised issues about the economy, growth and job creation. The report called for social bargaining, which should include "wage restraints" in return for hiring commitments, measures to enhance product market competition, and improved public services.

    Craven said: "This in essence, means an 'egg and bacon' agreement, where the business 'chicken' commits to lay eggs for breakfast and calls on the worker 'pig' to lay down its life to supply the bacon." This would lead to a downward spiral of the already meagre living standards of most workers, bringing lower levels of demands for goods and services, which would lead to more jobs being lost.

    Craven said the IMF's view was at odds with research done by the International Labour Organisation, which argued in favour of a wage-led growth strategy which was likely to generate a more stable growth regime for the future. Cosatu urged the government not to be misled by the IMF's policies.

    "Rather stick with the ANC's proposal for a radical economic programme for the second phase of the transition, and engage with the economic proposals tabled at the recent alliance summit, on which there was considerable agreement between Cosatu, the ANC and SACP," said Craven.
    What fantastic economic theory!

    Unfortunately it doesn't deal very well with the possibility that good, egg-laying chickens wander off elsewhere and there are fewer eggs being laid. Let's not forget where wages and salaries come from, Mr. Craven.

    So what will the "pigs" do when the "chickens" are running low?
    On current form, I take it, just carry on eating them.
    Last edited by Dave A; 04-Oct-13 at 10:04 AM. Reason: typo
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  2. #2
    Moderator IanF's Avatar
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    I feel that SA would be better off with COSATU going on its own separate from the ANC. Then we can have a two party state with the ruling party changing every few elections.
    I don't think the DA could ever get enough support to take over from the ANC.

    I had a trade printer cold call and the sample he left was a union calendar. That with all his cards went straight into the recycle bin when he left.
    Only stress when you can change the outcome!

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    Irvin Jim on Monday in response to BMW's announcement, included this gem:
    "... we will be left with no option but to consider our options...."

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    Diamond Member Blurock's Avatar
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    Quote Originally Posted by CLIVE-TRIANGLE View Post
    Irvin Jim on Monday in response to BMW's announcement, included this gem:
    "... we will be left with no option but to consider our options...."
    Your options are simple; either you have a job or not.
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  6. #5
    Platinum Member Marq's Avatar
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    I think this is an economic theory that could get get egg on cosatu faces. Craven has been reading too much into 'animal farm'.

    The chickens wondering off to greener pasture and the eventual death of all pigs and the end of breakfast is an old cliche in the business world. Rehash on commitment vs involvement.

    Of course the bankers are calling for restraint while the unions demand increases. This is basis for their existance, they will always be at odds in wage theory, but neither seem to take general economic theory into practice, whereby they include the other segments that make up the total economy.

    In Cravens world it is more like the eggs being laid by the worker pig, while the business chickens scour the barren countryside looking for more places to hide their heads before being cut off.

    "Economics is the art of balancing politics, organised crime and corporate greed with taxpaying citizens, unconscious followers and faithful snivelling poltroons." No wonder economists can never get it right and as long as the cosatu's of this world live in a vacuum, the balancing act will always be out of kilter.
    Last edited by Marq; 11-Oct-13 at 11:26 AM.
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