Johannesburg - Cosatu has welcomed the decision by rating agency Standard and Poor to uphold the country’s credit rating, though the federation believes further austerity measures will send the country on a death spiral.
Cosatu said it recognises the importance of the impact that the rating agencies have, however it is imperative for government to prove willingness to meet financial obligations and commitment to citizens.
“Needless austerity measures will not fix our unemployment, poverty and inequality. This will only cause social instability,”said Cosatu spokesman, Sizwe Pamla in a statement.
The federation noted the political and economic reforms which are being proposed will only appease investors and not citizens.
“The ratings agency should not be used to reintroduce the privatisation of State Owned Entities programme…and the deregulation of labour and more austerity measures,” said the statement.
According to the federation, even when the economy was doing well, workers had not been benefiting from its growth as no jobs were being created with the apartheid wage structure not being addressed.
“This year we have already seen up to 52 000 mining, 10 000 retail and hundreds of banking jobs lost. We have seen government freeze badly needed public service vacancies.”
The federation added that the country should learn from the Greek tragedy, by examining existing models which will be best suited for the country’s economy.
“Cosatu refuses to believe and embrace the much repeated fallacy that capital is the primary basis of economic growth.”
Cosatu says government should accept that its economic policies have failed to ensure decent permanent work for all.
“We call on government and business to seize the opportunity of the ratings reprieve and sum up the courage and seriousness to tackle unemployment.”
LABOUR BUREAU