Is the honeymoon between labour and government finally over?

Is the honeymoon over between the ANC and organised labour? That ’s what it looks like as President Cyril Ramaphosa sets about with gusto implementing his commitment to make South Africa more welcoming for business and foreign investors.

One of the biggest complaints about doing business in this country – from both locals and foreigners – is the difficulties caused by labour relations’ red tape. It is difficult to hire, even more difficult to fire, and there is an ever-present threat of labour action … sometimes go-slows but more commonly strikes, which often take on a violent edge.

Under Ramaphosa, the message has gone out loud and clear: labour strife will not be tolerated.

Even as the president was overseas last week encouraging investors, the department of labour – seen as a staunch ally of labour and one of the biggest hindrances to businesspeople – went on an extraordinary attack on labour unions, warning them that they run the risk of being deregistered if they do not have compliant strike ballot systems in place.

Ramaphosa has also announced – without much apparent negotiation with unions – a new national minimum wage of R20 an hour. Many unionists believe that is too low, but government believes it will stimulate employment.

Labour unions and civil society groups are now threatening a national strike this week to express their outrage at what they claim is the rolling back of many workers’ rights gains made since the end of apartheid.

Interestingly, the governing ANC’s alliance partner, the Congress of South African Trade Unions, is not throwing its lot in with the national strike, saying the rules on strike ballots are nothing new and are just being enforced.

Ramaphosa ’s approach will, no doubt, see him labelled as a stooge of “white monopoly capital”.

However, we believe this fresh, pragmatic policy will, ultimately, make us more competitive as a country.

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