Fedusa meets with ratings agency

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The Federation of Unions of SA (Fedusa) met global rating agency Fitch Ratings on Wednesday to discuss the state of the South African economy and labour relations.

“We are glad that the ratings agencies are seeing the value in consulting with all social partners, including labour, on these important matters that affect all of us,” Fedusa president Koos Bezuidenhout said in a statement.

Bezuidenhout said Fedusa was happy with the meeting, which was requested by Fitch.

Fedusa met another rating agency, Standard & Poor’s, on November 14.

Fedusa general secretary Dennis George said the meeting was fruitful.

“We had a fruitful conversation with Fitch and we trust this engagement will lead to an improved view on the investment grading of South Africa as an emerging economy,” said George.

He said recent examples of collective bargaining problems had not been good for investor confidence.

“We must do our best to show to investors that the institutions we have put in place can resolve workplace disputes in a disciplined and organised manner,” he said.

“We have state-of-the-art labour legislation and institutional mechanisms, but we have to use them correctly.”

George said unemployment remained the chief concern, and creating jobs was a critical indicator for confidence, future economic growth and additional tax revenue collection.

He said Fedusa appealed to Fitch to take into account strides made by South Africa to create a sustainable environment to improve investment possibilities.


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