Cabinet’s slap in face for labour, business

ALTHOUGH President Jacob Zuma assumed office at the worst time, with South Africa finally feeling the global recession as GDP contracted 1.3% that year, the country was nevertheless a massive construction site in the run-up to the 2010World Cup.

Given the major infrastructure investment ahead of the World Cup, Zuma’s government was able to register growth of 3.1% in 2010 and 3.4% in 2011.

The 5.6% growth in 2007 was the highest since 1990, and the 3.4% in 2011 was the highest under the Zuma presidency. Since then, the country has struggled to record growth higher than 2%.

In its 2009 election manifesto, the ANC pledged to create “more jobs, decent work and sustainable livelihoods”. In particular, it would “make the creation of decent work opportunities and sustainable livelihoods the primary focus of our economic policies. We will make maximum use of all the means at the disposal of the ANC government to achieve this [goal].”

Throughout the 15-page manifesto, growing the economy is not listed as a priority on its own. Instead, it is implied, or referred to in passing, in the context of the social rights on which the organisation places such a heavy emphasis.

In his first state of the nation address, on June 3 2009, Zuma promised that his government would create “about 500 000 job opportunities” by December that year and “four million job opportunities by 2014”.

He stated: “We will reduce the regulatory burden on small businesses. The matter of being stifled by regulations has been raised by the sector several times. In another intervention to create an enabling environment for investment, government will move towards a single, integrated business registration system. This will improve customer service and reduce the cost of doing business in South Africa.”

Six years later, the cost of doing business is anything but reduced. On top of the various constraints and higher administered costs, Zuma’s government has deemed it wise to further burden the business community with carbon taxes.

Contrary to some promises made by the ANC in 2009, fewer people are employed in manu- facturing now than then. In 2009, about 1.7 million people worked in manufacturing. Last year, that number stood at 1.34 million. The metals and engineering sector has lost 8 000 jobs during Zuma’s tenure.

The bleeding continues as more companies downsize this year or face going out of business altogether.

What is the government’s response? It stands aloof and refuses to engage with business. For the Southern African Metals and Engineering Indaba in Johannesburg last month, Zuma and some of his ministers ignored invitations to engage with concerned business leaders.

The president was first invited in September last year to open the conference, with subsequent invitations sent to him in November and several times this year. Apart from an acknowledgement of receipt by his office, he ignored them and never even bothered to reply.

Much was expected of his deputy, Cyril Ramaphosa. Many had thought that, given that he had served with distinction as a labour leader, then as a businessman, he would be much more accessible to all stakeholders, including the business community, which creates jobs, but this appears not to be the case.

It was certainly not the case when, spurned by his principal, we turned to him with an invitation to open the conference. He, too, didn’t bother to reply.

A number of cabinet ministers invited to engage with business and labour leaders at the indaba responded similarly. Economic Development Minister Ebrahim Patel could not be bothered to respond to an invitation to be part of a panel discussing the National Development Plan, or even to acknowledge its receipt, just as Energy Minister Tina Joemat-Pettersson, Public Enterprises Minister Lynne Brown and Co-operative Governance Minister Pravin Gordhan ignored invitations to discuss the electricity crisis and its impact on the economy (coupled with some municipalities’ reluctance to pay Eskom for power used).

Nothing speaks more eloquently about the disdain the Zuma government has for the business and labour communities (but especially the former), whose leaders participated actively in the conference’s discussions. Present were captains of industry such as ArcelorMittal SA CEO Paul O’Flaherty, Business Leadership South Africa chairman Bobby Godsell and Telkom chairman Jabu Mabuza, labour leaders such as National Union of Metalworkers of South Africa general secretary Irvin Jim and his Solidarity counterpart, Gideon du Plessis.

These are the people to whom the government showed an “up yours” finger.

Unsurprisingly, when political leaders treat others with disdain, the civil service follows suit. That is why Trade and Industry Director-General Lionel October and his counterpart at the Department of Economic Development also ignored our invitations.

But thanks are due to Trade and Industry Minister Rob Davies — who withdrew on the eve of the conference due to ill health — and Labour Minister Mildred Oliphant, who accepted our invitations. Our thanks also go to DA “shadow ministers” Geordin Hill-Lewis (trade and industry), Natasha Mazzone (public enterprises) and Kevin Mileham (co-operative government), who considered it important to interact with business and labour.

It is unfortunate that our government does not listen. It needs to understand that it cannot move the country forward on its own. Business is not an enemy and it is in South Africa’s interest that business thrives so that jobs are created, so that more taxes are paid. It needs to understand that we need a strong business, labour and government partnership if it is to succeed.

Nyatsumba is the CEO of the Steel and Engineering Industries Federation of Southern Africa

Many had thought that [Ramaphosa] would be much more accessible to all stakeholders