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South Africa must acknowledge working class and poor are suffering – Ramaphosa


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South Africa must acknowledge working class and poor are suffering – Ramaphosa

President Cyril Ramaphosa
President Cyril Ramaphosa

3rd May 2022

By: Schalk Burger
Creamer Media Senior Deputy Editor

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In his latest weekly newsletter, published on May 3, President Cyril Ramaphosa said the workers at the Royal Bafokeng Stadium, who heckled him off stage at a Workers' Day rally, made plain what nearly every South African knows, namely that the working class and the poor are suffering.

"Workers expressed their grievances loudly and clearly. While the main grievance appeared to be about wage negotiations at nearby mines, the workers' actions demonstrated a broader level of discontent. It reflects a weakening of trust in their union and federation as well as political leadership, including public institutions," he said.

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"These workers wanted to be heard. They wanted their union leaders and government to appreciate their concerns and understand the challenges they face. In raising their voices, these workers were upholding a tradition of militance that has been part of the labour movement in this country for decades. As political and union leaders, we have all heard the workers and understand their frustration."

Further, political and union leaders are firmly committed to take the necessary action to improve workers' lives and their working conditions, but this is not something that government can do on its own. It needs labour, business and the whole of society to work with government to implement an agreed set of measures to grow and transform the economy, Ramaphosa said.

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"[The workers] made the firm point that we must do more and act with greater urgency to address issues of unemployment, poverty, deprivation and hunger. At the same time, we must establish more efficient mechanisms to enable workers to participate more fully in the formulation and implementation of policy and programmes," he highlighted.

While the pandemic has affected everyone in our society, it is the working class and the poor that have suffered most. They have also been the most affected by service delivery failures, corruption, crime and weaknesses in local government. It is the working class and the poor who were affected most by the public violence and destruction in July last year, and who were most vulnerable when catastrophic flooding struck parts of KwaZulu-Natal and the Eastern Cape.

"The workers that gathered at the Royal Bafokeng Stadium and millions of other people across our country cannot wait for the impact of reforms to be realised. That is why, as we implement reform measures, we are seeking, within our constrained public finances, to provide a basic level of social protection to the most vulnerable," said Ramaphosa.

"There is still much more that needs to be done to unleash the potential of our economy and provide the employment opportunities that our people need.

"That is why we need to all work together to ensure that it will not be long before the workers of Rustenburg, and indeed workers across the country, begin to experience the benefits of ports and rail infrastructure that can effectively carry our goods to export.

"So that we can all experience the benefits of a stable electricity supply that is cleaner and cheaper, of fewer restrictions on small and informal businesses, of better access for all to broadband technology, and of an exploration strategy that leads to an increase in mining investment."

The challenges that workers face this Workers Day are many and the hardships they endure are great. The road ahead will be difficult and there is much work to do.

"That is why we need to rebuild trust and confidence, and why we need to forge a social compact that not only has the support of workers, but also delivers meaningful benefits to them," he said.

South Africa's progressive labour laws are the product of engagement among all social partners who devised an effective response to the 2008 global financial crisis and laid the foundation for the Economic Reconstruction and Recovery Plan, which is guiding the country's response to the effects of the Covid-19 pandemic.

It was such a partnership that led to the introduction of a national minimum wage in 2019, giving effect to a demand that had been made more than 50 years before at the Congress of the People, in Kliptown. Further, it is these partners that are, once again, engaged in deliberations on how to accelerate growth and create employment, Ramaphosa said.

Since the advent of democracy, significant progress has been made in improving the social and economic position of the poor and working class through the improvement of conditions of employment, the general provision of basic services and access to education and health care.

"Yet, the growth of our economy and the creation of jobs that followed the advent of democracy has been undermined over the past decade and more by the combined effects of the 2008 financial crisis, the sharp decline in commodity prices, state capture, corruption and poor governance," he said.

The Covid-19 pandemic struck just as the country was emerging from the era of state capture. In addition to the loss of more than 100 000 lives, the pandemic caused massive damage to people’s lives and livelihoods.

"Our economy shrunk and more than two-million jobs were lost in a period of 12 months. This was a massive blow to our country, from which it will take many years to recover."

Social relief measures are in place alongside those to promote employment, like the Presidential Employment Stimulus, which has provided work and livelihood opportunities to more than 860 000 since it was started. It includes the expansion of the Employment Tax Incentive to encourage small businesses to employ more people, a loan guarantee scheme that has been redesigned to provide finance to smaller businesses, and the reduction of the red tape that holds back the growth of businesses.

"We are undertaking fundamental economic reforms that will improve the competitiveness and economic contribution of the energy, water, telecommunications and transport industries. These reforms, together with increased investment in infrastructure, will enable faster economic growth and employment creation.

"In the long term, these reforms will unlock much higher economic growth. As businesses grow, they will create more jobs, helping workers and unions in a virtuous cycle.

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