By Simon Nare
COSATU on Thursday warned that government remains fixated on a failed austerity path that has left South Africa’s economy stagnating at an average growth rate of about 1% since 2008, contributing to an unemployment rate of 42.4%.
The trade union federation has been at loggerheads with government for more than a decade over budget cuts that have eroded social services, particularly in education and health, resulting in staff shortages and declining service delivery.
In its year-end reflection on the successes and challenges of 2025, COSATU said austerity policies have entrenched joblessness and inequality and will not deliver the minimum 3% economic growth needed for meaningful job creation.
“The Federation vows to continue opposing government’s neoliberal trajectory and will lobby for the employment of more teachers, nurses, doctors and police, as well as the provision of the resources they need to do their jobs,” COSATU said.
The federation nevertheless welcomed several positive developments, including South Africa’s exit from the Financial Action Task Force grey list, a credit rating upgrade by S&P, the creation of 248 000 jobs in the third quarter, and an improved growth outlook of 1.8% over the next three years.
“While progress at Eskom, as well as work done at Transnet and Metro Rail, is applauded, much more must be done to arrest the collapse of municipal and public services,” it said.
COSATU also vowed to intensify its fight against employers who default on workers’ pension fund contributions, saying it would engage the National Economic Development and Labour Council (NEDLAC), the Financial Sector Conduct Authority and the Department of Employment and Labour to resolve the matter.
This would include requiring labour inspectors to check pension compliance during routine company inspections.
The federation said that during the COP30 meeting in Belém, Brazil, it and fellow trade unions engaged on issues such as debt relief, affordable financing, the Just Transition and critical minerals.
“COSATU reaffirmed at COP30 that there can be no climate justice without social justice, and no Just Transition if workers’ needs are not placed at the centre,” it said.
Its demands include protecting existing jobs, creating new decent work, guaranteeing income support, retraining and reskilling workers, and strengthening public services, local economies and community resilience.
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