Political Report to the Tenth Cosatu National Congress Theme: Consolidating Working Class Power in Defense of Decent Work and for Socialism Table of Contents I. Preamble II. Introduction Part 1: Reflection on the Domestic and Global Balance of Forces 1. Sharpening our Ideology and Theory of Revolution 1.1 Building Marxism for Contemporary Challenges 1.2 Debates on the Nature and Trajectory of the National Democratic Revolution 1.3 The Ndr and the Struggle for Socialism 2. The Global Situation 2.1 Impact on GDP and Jobs 2.2 Impact of the Economic Crisis on the Budget 3. Progress in the National Democratic Revolution 4. The Road to Polokwane and its Outcomes 4.1 The Road to Polokwane 4.2 Strategic Considerations Informing the Federation's Approach to Polokwane 4.4 The Meaning of Polokwane: Assessing the Outcomes of the Conference 5. The Elections and the Outcomes 5.1 The Political Environment under which Elections were held: 5.2 The Media, Conservative Academics and Commentators 5.3 The Jacob Zuma Factor 5.4 The Emergence of Cope 5.5 Understanding the reasons behind the Split 5.6 What is Cope offering the working class? 5.7 The Mythical Investors 5.8 Subjective and Objective weaknesses of the ANC and Alliance 5.8.1 Western Cape 5.8.2 Eastern Cape 5.8.3 Northern Cape 5.8.4 North West 5.8.5 Free State 5.9 Mobilisation 5.10 ANC Elections Manifesto 5.11 Transition to the New Cabinet 5.12 The Green Paper on Strategic Planning: A Big Step Back towards Pre-Polokwane Shenanigans 5.13 The Impact on Cosatu 5.14 The Impact on the Anc 5.15 Impact on SACP 5.16 The Programme of Action of Government 5.17 Summary of the Mandate 6. Way Forward: Strategic Challenges Facing COSATU and the Liberation Movement 6.1 There Are No Permanent Victories 6.2 State of the Motive Forces Who Imposed Changed 6.3 Attempts to Divide the Alliance and Attacks on the ANC President 6.3.1 Macro Economic Policy 6.3.2 Battles on National Health Insurance 6.3.3 Speculation about Where Power Resides 6.3.4 Exaggeration of the Strike Actions 6.4 Options for Revolutionary Unions in Post-Apartheid South Africa 6.5 Reasserting Revolutionary Morality and Ethics 6.5.1 Politicians with Business Interests 6.5.2 State Officials corrupting the State 6.5.3 Monitoring Government Procurement and Tender Process 6.5.4 Unionists with Business Interests 6.5.5 Waging an All-Round Battle against Corruption 6.6 Discussion Point: Part 2: Political Activity Report 1. The Alliance 1.1 Alliance Summit 1.2 Alliance Economic Summit 1.2.1 Planning and Co-Ordination in Government 1.2.2 Trade and Industry and Employment 1.2.3 Comprehensive Social Protection 1.2.4 Macroeconomic Policy 1.2.5 Processes to Implement these Decisions: 1.3 Alliance and Mass Democratic Movement 1.4 Alliance Nob - The Alliance Political Center 1.4.1 Reconfiguration of the Alliance and an Alliance Programme of Action 1.4.2 The ANC - Led Alliance as a Strategic Political Centre and the Alliance Political Council 1.4.3 The Functioning of the Alliance 1.4.4 Building and Sustaining the Post Polokwane Framework 1.4.5 Reflecting on the Current Political Situation 1.4.6 Governance and Transition 2. Programmes Developed to take forward the Resolutions of the Congress 2.1 Building the Alliance 2.2 The SACP 2.3 Ndr and Socialism 2.4 Strengthen Democracy 2.5 Women Movement and Women Empowerment 2.6 Monument for Working Class Heroes 2.7 Organisational 2.8 Jobs and Poverty Campaign 2.9 Hiv and Aids Campaign 2.10 Import Parity Pricing 2.11 State Involvement in the Economy 2.12 Bbbee 2.13 Saccawu Provident Fund 2.14 Labour Market 2.15 Police Brutality 2.16 Demarcations 2.17 Organisational Development 2.18 Mergers and Unity Programme 2.19 Nedlac 2.20 Unity Project 3. Building Unity: The Report of the Commission and Proposals from Nobs 3.1 The COSATU Constitution and the Worker Control Principle 3.2 The Modus Operandi 3.3 Capacity Building and Development for Nobs 3.4 Resources 3.5 Profiling of All Nobs 3.6 Leaking of Information 3.7 Frequency of the Nobs Meetings 3.8 The Manner of Raising Issues 3.9 Meeting With the President and Chairperson of the ANC 3.10 Security of the General Secretary 3.11 Credit Card Investigation 3.12 Allegations of Sexual Harassment 3.13 Progress on Cementing this Unity Project 3.14 New Tensions Arising from R500 000 Donation Allegations Saga 3.14.1 The Allegations 3.14.2 Establishment of The Commission 3.14.3 Terms of Reference 4. The SACP 12th National Congress 5. Support for Comrade Jacob Zuma 5.1 The Politics of the 1996 Class Project 6. The Recall of President Thabo Mbeki 7. Walking Through the Open Doors 7.1 Walking Through the Doors- Political Strategy 7.2 Walking Through the Doors- Economic Strategy 7.3 Gaining Control of Our Economic Levers 7.4 Transition to The New Order 7.4.1 Reconfiguration of Government 7.4.2 Composition of The New Cabinet 7.4.3 Deployment 7.5 Budget i. Preamble This Report is dedicated to comrade Violet Seboni, who was prematurely taken away from the movement. Comrade Violet was a good example of the shop floor based and shop-stewards activism that has characterised COSATU for more than two decades. In honour of this fine comrade, the movement must continue to be rooted in the workers at the shop floor, in the mines, factories and public services. Shop- floor activism and internal dynamic participation by all the structures is the only guarantee of the movement's survival. It is also how, for many years, COSATU has reproduced leadership. Further, we acknowledge the many members and leaders that have laid down their lives in service of the movement and the cause it is fighting for. In this regard we recall the immense contribution of comrade John Gomomo, the former President of the Federation who passed on January 22, 2008, Don Pasqualli, Deputy General Secretary of SADTU, who like Violet Seboni died tragically in a car accident on January 25, 2008. We recall comrade Pinky Singozo-Shuping, Deputy President of POPCRU who also passed on June 20, 2008. The Report is also dedicated to the countless shop stewards, the COSATU's two million members, and leaders at all levels. These comrades are the bedrock and lifeblood of the Federation; and continue to work tirelessly, often without reward, to continue the struggles of the workers. Without, their contribution, COSATU will not be a force to be reckoned with. It is for this reason, that your efforts must be acknowledged. COSATU is a movement of ordinary working men and women that have joined together to fight for a better life for the workers in the thousands of workplaces across the country. COSATU members also understand that workplace struggles are integrally linked to community and the broader struggle for social transformation. Hence, they form the backbone of our allied formations, the leading formation of our national democratic revolution, ANC and the vanguard of the South African working class, the SACP. ii. Introduction The task of the political report to the Congress is two-fold. First, it must provide a political analysis of the domestic and global situation; identify opportunities and challenges; and assess the strengths and weaknesses of the forces fighting for change. The second task of the report is give feedback to delegates on what actions were taken to implement the mandate of the previous Congress, i.e. Activity Report. For that reason, the Political Report is divided into two parts, reflecting on the broad strategic challenges facing the democratic movement, and a report to delegates and members on the execution of the mandate. The political report is obviously tabled in a different context than the one that prevailed at the 8th National Congress: a. The profound ANC 52nd ANC Conference or 'Polokwane Conference' will resonate for many years to come. The changes it has proposed are still at an early stage, but mark a decisive landmark in the post 1994 history of the ANC; b. The subsequent formation of an opportunist splinter group which, in its bid to steal the legacy of our National Democratic Revolution, calls itself the Congress of the People; c. The historic fourth democratic general elections that took place on April 22, 2009. Regular elections are important sign of the health and maturity of democracy. The elections affirmed South Africa's march towards a free, united, democratic, non-racial and non-sexist South Africa. This year also marked also the 15th Anniversary of the 1994 democratic breakthrough. d. The installation of new government led by Comrade Jacob Zuma as President of the Republic. e. The tumultuous economic developments at a global and national level. The world is still struggling to shake off the massive impact on jobs, livelihoods, national economies and financial markets unleashed by the global economic crisis. The effects are still working their way in the South African economy and have prompted a national response involving government, labour and business to address the ramifications of the global economic crisis. The question facing us as delegates is what has changed since the previous time we met? The dominant theme of this report is to provide an answer to this question. There is no doubt that there has been significant change since the last Congress.