Social and Solidarity Economy Social innovation in the world of work 27 – 31 July 2015, Johannesburg, South Africa

Presentation by Theodora Steele (Cosatu Organising Secretary) The role of Social Solidarity Organisations in Formalising the Informal Economy

History of Cooperatives / Social Solidarity Economy 3 The Social and Solidarity Economy is part of the Integrated Trade Union Response, in line with its founding principles, which are intrinsically linked to the origins of cooperatives. Cooperatives exist under various guises in South Africa. sometimes they are referred to as ‘projects’, ‘self-help groups’, ‘mutual societies’, ‘village banks’, ‘credit unions’, ‘consumer store’, stok-vels and sometimes even the word ‘association’ is used to describe the cooperatives. Essentially, cooperatives are member-owned and democratically controlled institutions. They are not-for-profit in the sense that voting in a cooperative is not based on the number of shares owned but instead on the universal principle: one member, one vote. While cooperatives make a profit this is subjected to the logic of member needs - the essence of the cooperative. The SA Government has committed on various platforms to the cooperatives and significant policy development has occurred as part of creation of jobs and reduction of poverty and inequality. Today we are referring to the broad term of Social and Solidarity Economy as part of the Formalisation of the Informal Economy.

Role of Trade Unions in the Social Solidarity Economy 4 Labours comments on the integrated strategy on the promotion of co-operatives and collective entrepeneurship is the guide for trade unions role in the social solidarity economy. The labour movement acknowledges that socio-economic challenges facing the country, has resulted in renewed interest in co-operatives. Co-operatives can allow the poor and working class to participate in the mainstream economy as owners and sharers of essential equipment. The Presidential Growth and Development Summit recognised that co-operatives can be a vehicle for poverty reduction and job creation for vulnerable groups and endorsed special measures to support co-operatives. Labours four strategic pillars for the implementation of support programmes are the following: - Non-financial support services to co-operatives. - Creating demand for enterprises products and services. - Improving competiveness of co-operatives and SMMEs - Increasing financial services to co-operatives.

Organisations and structures to include for Implementation 5 International Organisations – For research and Support. The need to review policies and resolutions on Cooperatives and adapting in line with the ILO Recommendations No193 on co-operatives, No 198 on Employment Relations and No on the Formalistion of the Informal Economy. Government Departments – Department of Trade and Industry, new Minister for Small Businesses, Social Development, SALGA and others. Social Solidarity Organisations – South African National Apex Cooperative (SANACO), Cooperative and Policy Alternative Center (COPAC) etc, inclusion to generate a space for further political discussion between the social actors permitting clarification and a better definition of the role of the SSE, such that we may have a better global consensual definition. Labour Federations – COSATU, NACTU, FEDUSA Business and Finance – BUSA, Small Enterprise Finance Agency (SEFA), Small Enterprise Development Agency (SEDA) NEDLAC – Social Dialogue processes to ensure the voice of the existing cooperatives and those in the informal economy to be heard. We acknowledge diverse actors in the Social Solidarity Economy. Tripartism is the very foundation principle to ensure this is genuinely representative and inclusive. SMME and Cooperatives Development Task Team setup by NEDLAC Exco – Meetings scheduled for Legislative and Regulatory issues, Research, Enhancement of institutional efficiency, Red tape reduction, Procurement support and General support.

Finding the link with SSE and sustainable development in Africa 6 Labour generally supports the Strategy, and believes co-operatives cannot develop on their own without government support. Co-operatives can play an important role in the transformation of the economy. A large number of people in South Africa who live in rural and peri-urban areas are part of the informal economy or are otherwise socially, economically and politically excluded from the benefits of development. Cooperatives play an increasing significant role in helping these people to find solutions on how to cooperate out of poverty by tapping their own resources, knowledge and strengths. Cooperatives contribute to develop the local economies where the poor live through their unique and strong linkages with the community. They enable poor people to have their voices heard in addition to improving their daily working and living conditions. Because co-operatives are democratic organisations and owned by those who use their services, cooperatives are an ideal instrument to empower the poor. They are participatory, responsive to local needs and able to mobilize communities and help particulary vulnerable groups of people. To engage the existing Cooperative structures, Alliance partners, Informal economy organisaions, in order to describe the whole picture, its deficiencies and gaps relevant to the country. To then define and address the overall legal framework and its gaps and develop the relevant economic and social policy mix.