ISS is the international Institute of Social Studies of Erasmus University Rotterdam

The Informal Economy and the Casualisation of Labour Blind Spots in the Trade Union Movement in Southern Africa? Freek Schiphorst Institute of Social Studies The Hague – The Netherlands

General picture 75% of non agricultural employment in Sub Saharan Africa is informal 93 % of new jobs are in the informal economy Informal = Not registered, recognized nor protected within legal and regulatory frameworks Not just “informal sector” but “informal economy” In formal sector there is an increasing informalisation of production and employment relationships (non-standard: casual; temporary) Casual Causal through broker Independent contractors

Zimbabwe Kanyenze et al. 1994:31-38 Since ESAP (1991) ZiCTU recognises the plight of retrenched > Project Department Beyond ESAP (1996): recognition of IE 2000: Bulawayo Upcoming Traders Association (BUTA) 2001 CTUC project – ZiCTU IE Programme 2002 Zimbabwe Chamber of Informal Economy Associations (ZCIEA – 150 informal associations representing 10,500). MoU with ZiCTU: facilitate own organisation / awareness training / paralegal manual (2008)

Zambia Streetnet.org.za & & Koyi 2006:10-11 & War on Want 2009:47 ZaCTU changed constitution (1995) Zambia: since 2002: Alliance of Zambian Informal Economy Associations (AZIEA – 13 members representing 47,100) Associate member of ZaCTU since Seat on Executive Committee. ZaCTU facilitates own organisation Affiliation to ZaCTU gives AZIEA a public profile and visibility AZIEA feels ZaCTU could do more …

Namibia Streetnet.org.za & Horn 2008: Namibian Small Trades Association (NAMSTA – 5 members, representing 6,000) 2007 MoU with National Union of Nambian Workers (NUNW) NUNM facilitates own organising

Economic Crisis in South Africa Labour Force Surveys : vi  Up till last quarter of 2008: growth in formal sector employment (but declining)  In 2009: Job losses: -200,000 lost in 1 st quarter -267,000 lost in 2 nd quarter -484,000 lost in 3 rd quarter + 41,000 gained in 4th quarter =6.3% of formal employment

SA Labour Market Indicators,000 Quarterly Labour Force Survey Dec 2009:vi Population ,261 Total not economically active 14,123 Labour Force 17,138 Total employed 12,974 Total unemployed 4,165

,000 Vulnerable Workers in SA? Quarterly Labour Force Survey Dec 2009:vi VVulnerable 9,095 TTotal employed12,974 FFormal 9,114 IInformal 2,109 DDomestic 1,135 AAgriculture 615 TTotal unemployed 4,165 TTotal 7,409 DDiscouraged work-seekers 1,686

,000 Vulnerable Workers in SA? Quarterly Labour force Survey Dec 2009:vi&2  Vulnerable9,095 (M=4,238; F=4,858) (M=47%; F=53%)  Formal9,114 (M=5,372; F=3,742) (M=59%; F=41%)

Trade Union Members  40% was organised in 2004  Four main federations and 250 independent trade unions  Since 2008: union membership dropped by 10 %  Density is now just under 30% of formal employment  t/u members earnings: CB results in 8 sectors 2006 Average Monthly Salaries 8,521 ZAR (7,950 Median)

Vulnerable Workers? Makgetla 2007 in 2007 ZAR 1,900 per month is needed for survival by a family of five  Under ZAR 1,000 in domestic and agriculture  92% of informal workers less than 2,500  82% of informal workers less than 1,500  54% of informal workers less than 500

COSATU members - Vulnerable Workers? Valodia et al. 2006:103 & Naledi 2006:55  wage up to 2,500 ZAR >>> 19 % union members  wage up to 500 ZAR >>> 7 % union members  A COSATU survey found that union members generally earned 50% more than non-members.  Union members stood a better chance of receiving benefits such as medical aid, retirement fund, paid leave and a written contract of employment

Should COSATU Defend Vulnerable Workers? September Cie 1997 Recognises the existence of vulnerable & unprotected workers. The question facing COSATU is whether to start organising, or developing alliances with, working people in the informal sector  Needed is internal transfer of resources within COSATU from stronger affiliates

COSATU has five options : 1.ignore the informal sector and concentrate on organising in the formal sector 2.encourage affiliates to expand their activities to include workers in informal sector activities in their industrial sectors 3.encourage organisations of informal sector workers to affiliate to it, or even initiate the formation of informal-sector affiliates 4.encourage informal-sector organisations to form a federation, and then forge an alliance between such a federation and COSATU 5.combine several of these strategies

COSATU  What happened since 1997?  Nothing A 2001 report: Continuous recruitment effort, focusing on workers in informal and non-standard jobs Service centres in the regions to reach out to workers in the informal sector as well as domestic and farm workers Advice centres would both help reduce the cost of serving these workers, and let workers get help from unions even if vulnerability at work means they cannot join

COSATU ? A 2003 report: In the long run, the only way to stem membership loss is to fight for job creation and to increase membership density, especially in the formal sector Workers in unions outside of COSATU must be regarded as unorganised, since our objective is to establish one union, one industry – and one country, one federation

COSATU 2004 Bonner Extending the boundaries beyond “traditional” membership type does not appear high on the agenda of many established affiliate organizational renewal programmes Whilst the September Commission, as early a 1997, set out recommendations for organising workers in the informal sector … and COSATU Congress of 2000 set out a programme to do so, unions have not prioritized this in their organizational renewal programmes

COSATU 2004 Bonner Some unions are organising, or supporting the organisation of, workers in informal economy SATAWU – SACTWU – SAMWU: marginal efforts COSATU embraced a number of unions organising “atypical” workers such as football players, musicians, and performers

COSATU 2004 Bonner COSATU and individual affiliates do not implement resolutions on organizational renewal nor sustain the work COSATU needs to actively keep this on the agenda, to continuously “whip” affiliates into action, and to provide more support for affiliates processes. Since the 8th Congress [2003] it has failed to do this Plans of affiliates have targeted “atypical” or “non- standard” workers in waged employment, such as casual and outsourced workers, workers employed through labour brokers and the like, rather than those who more clearly form part of the informal economy, such as street vendors

COSATU COSATU starts campaign to outlaw labour brokers; Submissions to Parliament One resolution in 2009 COSATU Congress calls for a campaign to organise the unemployed (to be paid for by Department of Labour)

SEWU Self Employed Women’s Union, registered as NGO, 1994 – 2004 Membership was only open to women Survivalist activities 1997, offices in three provinces, 2001 in five All financed by foreign donors Membership reached in peak in 2003: 4930 Dramatic decline immediately thereafter. In 2004: 1,967. Provincial Offices closed and in 2004 SEWU was declared bankrupt

Why?  Slow progress and internal problems leading to withdrawal of donors  Only lip-service support from local sectoral unions  For main donor: Cold shoulder from COSATU

COSATU ? What seems to be the problem…?  Organisational rigidities  One industry – one union not to undermine affiliates; integrate IE organisation in existing unions. No support for weak affiliates from stronger ones.  Organising IE is “Pat’s Thing”: not a mainstream concern  Male domination?  Wage culture – collective bargaining as sole logic of collective action

Sikhula Sonke Originates from NGO: Women on Farms End 2004 registered as trade union Led by women (because issues that affect women are largely neglected by mainstream unions) – open to male members Organizes seasonal workers Social movement trade union focussing on all livelihood challenges of farm dwellers

Sikhula Sonke  improve the living and working conditions of members and their dependants, including the youth and elderly  enhance the status of women and protect their interests  bargain collectively on behalf of its members for improved wages and other working conditions, including housing  improve the economic conditions of members by developing work and other economic opportunities  represent its members in negotiations with employers, and local and national authorities.

Sikhula Sonke – COSATU?  COSATU rep attended congress in 2006: “You achieved what not even our affiliate could do”  Sikhula Sonke: “We’re nervous by the politics in COSATU. We prefer to remain non-political”  Affiliation to COSATU? “At the moment we want to consolidate … maybe in the future …”

Casualisation and Informal Economy Blind Spots in the Trade Union Movement in Southern Africa? Casualisation? NOT a blind spot for COSATU; But….. Informal economy? YES for COSATU & NOT for others Zimbabwe successful (given the circumstances); Zambia: making inroads; Namibia: well willing. ALL use Organising Model

Sikhula Sonke as model? Has COSATU forgotten how to mobilize and can it only represent? Is the dilemma how to combine representation AND empowerment ?