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Title: Economic Policy from Below
Author: Warren McGregor
Date: 2019
Language: en
Topics: South Africa, trade unions, reformism, critique
Source: https://zabalazabooks.net/2020/03/26/economic-policy-from-below-an-anarchist-critique-of-the-cosatu-unions-radical-reform-project/
Notes: **** This pamphlet is an extract from the book Strategy: Debating Politics Within and at a Distance from the State – Eds. John Reynolds & Lucien van der Walt published by the Neil Aggett Labour Studies Unit (NALSU), Rhodes University, Makhanda, South Africa

Warren McGregor

Economic Policy from Below

Whereas many union movements in the world entered the 1990s in a state

of political crisis, South African unions not only continued to grow

very rapidly – the South African union movement was among the five

fastest growing union movements in the world at the time – but also

developed an alternative policy framework that bucked the neoliberal

trend.

Centred on the Congress of South African Trade Unions (COSATU), and

within it, key unions like the National Union of Metalworkers of South

Africa (NUMSA), the unions developed an ideological and strategic

orientation described by scholars (e.g. Eddie Webster and Glenn Adler,

2000) as “radical reform” or “structural reform.” The thinking of the

main unions in South Africa remains, to this day, profoundly shaped by

the “radical reform” (RR) model.

The aim of this input is to examine the RR model, which was an attempt

to build on the many key progressive gains won by workers and their

organisations through struggle in the 1980s, and push through to a

deeper transformation in the 1990s. This input defines the key

components of RR, and then examines why this innovative response to the

parliamentary transition and to capitalist globalisation was not

successful. This requires looking at issues of neoliberal capitalist and

state domination, the impact of RR on the unions, and the effects of the

institutionalisation of trade union activity and dispute processes that

have taken place. It raises deeper questions about the unions’ politics

as well.

Therefore, this section provides some ideas on:

the concept is based.

development of the approach.

Radical Reform (RR) as Economic Policy-from-Below

RR came from the COSATU unions, not the ANC or SACP, and was a strategic

trade union and working-class approach to socio-economic transformation

of newly-democratic South Africa and the role that organised labour

would play in this transformation. It was developed in the fires of

struggle against late apartheid and capitalism in South Africa by COSATU

and its affiliates and can confidently be considered an example of

economic policy development from below that was developed through

engagements with the ideas and desires of the rank-and-file in

conversation with their elected leaders and officials.

Locally, the black working-class majority and its organisations were

defeating the last vestiges of apartheid and racist capitalism, and

engaging the newly developing institutions of a democratic South Africa.

These struggles had incubated the development of powerful and militant

working-class organisations, keenly aware of their power and historical

role and responsibility.

At the dawn of the 1990s, COSATU entered into a formal alliance with the

ANC. There was then a mighty, radical, mass-based and street-mobilising

working class, closely linked to what was then a radical nationalist

party, ANC, which was on the verge of state, power, as well as allied to

the fastest growing communist party in the world at that time, the SACP.

Defining Radical Reform (RR)

According to the labour scholars Webster and Adler, writing in 2000,

radical reform (RR) is a “left version of social democracy.” [1] Social

democracy is the idea that the working class can win the existing state,

using means like parliament, corporatism and expanded state control of

the economy to shift society towards socialism through a series of

reforms. A social democratic party is usually a mass party, as it needs

maximum numbers to win elections.

What makes RR a “left” version of social democracy is that it was driven

by mass, radical unions, who were willing to use rolling mass action to

win RR; and, secondly, RR included many demands that were designed to

give workers and unions direct power over economic decisions, including

in company boardrooms and on the factory floor. The core ideas were

that:

that benefit the black majority, but the working class and poor

especially.

ended, in ways that empower rather than oppress the working class.

Unlike the “low road” of China, based on low wages and brutal

suppression of unions, the new South Africa should follow a “high road”

closer to Germany, with high-skill, high-wage, high-productivity

workplaces in which black workers, in particular, would be empowered.

frontiers of capital by giving workers and unions a greater say in the

economy, fighting for policy reforms in the state like universal

pensions and a great change in education that would protect labour from

markets. At every stage, the working class would win – through the state

and through bargaining – more power, leverage and skills.

it aims at codetermination of industry via tripartite bargaining and

consultative forums with employers and the state.

economy” including cooperatives.

for socialism, each of which would allow further conquests, more

”building blocks,” so that the ultimate outcome would not just be

capitalism (even if on “German lines” with co-determination and

welfare), but rather a transfer of power to the working class, i.e.

socialism.

Therefore RR is radical in that it seeks a future socialist

worker-controlled society and economy, but reformist in its approach to

transformation, in that it does not seek immediate revolutionary

processes, but aims to build worker power by engaging the state and

capital in organised industrial forums – e.g. NEDLAC and Industrial

Bargaining Councils – pushing for increased worker control over economic

management by consistently improving the conditions of work for labour.

Reformism is a political strategy focussed solely on winning reforms,

and it rejects revolution. In its social democratic version, it is

argued that the effect of many reforms is a peaceful shift to a new

society, removing the need for revolution.

What makes RR a more powerful application of the classical social

democratic model, as per the ideas of key scholars, was COSATU’s

presence in a formal alliance with the governing party, the ANC, and the

SACP. The ANC’s certain long-term electoral mandate promised consistency

regarding governance and policy development. COSATU would have vital

access to key decision-makers in the legislative and executive arms of

government, access developed not only by formal alliance, but also

through comradely personal relationships developed through years of

struggle. COSATU and its affiliates would also be able to use this

Alliance to send key worker leaders into government as ANC electoral

candidates. Further, COSATU would have access to a range of forums

beyond parliament to present and win RR proposals, e.g. the Tripartite

Alliance itself, ANC congresses, the SACP, NEDLAC and Bargaining

Councils.

As such, COSATU could assert pressure on the ruling party to adopt

progressive, working class orientated policies of RR, in three key ways:

employers, both the state as employer, and the private sector.

necessary, mass worker protests and contestations “outside” the Alliance

on the streets and at workplaces.

The Assumptions of Radical Reform (RR)

This approach to developing working class power and encroaching worker

control rests on a few key assumptions, some of which I mention below.

Firstly, it assumes that the union movement is and will continue to be a

vibrant, creative force able to respond (i) analytically to

non-progressive ideas pushed by the state and private sector, and (ii)

physically, via mobilisation, to the actions of the state and private

sector and to do so quickly enough to either halt or change the

situations facing the working class.

It also assumes that the state is an institution of governance that is

able to be manipulated by different class forces – whether capitalist or

working class – depending on the relative strengths of these classes in

relation to each other. It thus also assumes that class is determined

solely by economic relations of ownership of productive means.

Thirdly, RR assumes that ANC policy trajectories can be shifted in

favour of policies advocated by the labour movement. COSATU thus

acknowledges there are various ideological forces competing inside the

party, but it does assume that the ANC, as the self-proclaimed party of

the majority of people in South Africa, must then have a working-class

bias or sympathy, and that eventually the ANC will come around to

meeting the desires of working class people.

Importantly, RR is predicated on a large, organised, united, militant

labour movement strong enough to coerce the state and private capital in

a pro-worker socio-economic direction. RR also rests on continued ANC

rule and a large section of the organised working class united in its

desire for longterm and unfettered ANC rule.

Last, it assumes a somewhat one-way direction in change: each victory

allows another victory, each building block allows another one. The

assumption here is that more and more blocks can be won, until the

system is basically socialist.

Ideologically, COSATU’s RR can be located in the sphere of social

democracy. As such, its political orientation, including anti-capitalist

rhetoric and its working-class bias, is within this framework, even if

its political rhetoric draws on Marxism-Leninism and nationalism. It

sees a particular role for the union movement, to be sure, but it views

progressive transformation as being achieved through the state. It

adheres to a stageist approach to achieving socialism, i.e. the idea is

that capitalist economic growth (under the ANC) will develop the forces

of production, which will enable the shift to socialism. What labour

then has to do is make sure this development is used to benefit and

empower the working class, so that the transition to socialism becomes

possible. Its economic foundation is Keynesian as it seeks a state able

to intervene in financial, commodity and labour markets in a way that

benefits all classes.

Challenges and Shortcomings

Overall, while COSATU developed a wide range of RR proposals on

everything from the chemical industry to pension funds, none were

adopted in any serious way by the state or capital. For example, in the

main case when a RR proposal was formally accepted – a proposal for

reconstructing Spoornet – the state simply ignored the agreement.

Achieving some of the desired ends of the RR strategy has faced an ANC

increasingly founded on neoliberalism, which COSATU has been unable to

shift despite the application of the RR strategy. This helps explain why

COSATU keeps asking for a reconfigured Alliance, and for making the

Alliance – not the ANC – the centre of policy.

The Global and Local Context

The RR strategy was developed in the contexts of the late 1980s and

early 1990s. This was a time of rapid changes in the world. The balance

of forces was shifting against the left and the working class

internationally, and the local context was a transition that involved

major compromises. The new phase of capitalism everywhere was

neoliberalism – this was not even new in South Africa where the National

Party had privatised ISCOR and SASOL.

It was the end of the era of Marxist states and the foundations of

social democracy and trade unionism in the advanced industrial countries

were under severe attack. This was the advent of the era of

neoliberalism, structural adjustment and free-marketism, not only as

regards socio-economic development. Nationalist parties across the

poorer countries were embracing neoliberalism. Socialism and trade

unionism were considered anachronistic and a wall impeding freedom –

admittedly an attitude fostered by the propaganda of ruling and

capitalist classes emboldened by their victories against organised

labour and the Left. COSATU was growing, but it was an exception to the

international trend, and while the SACP was growing, most communist

parties worldwide were collapsing.

By the late 1980s, South Africa had become isolated from much of the

rest of the world. As such, much of the foundations of RR betray a sense

of South African exceptionalism, discounting the dramatic changes that

were taking place on various international stages. Its ideas for

development and the role of organised labour in the process of societal

change seem outmoded when related to international changes. The focus

was on South Africa, but South Africa was not an island, and even within

South Africa, conditions were arguably challenging for RR.

As time would show, the ANC came under massive pressure to adopt

neoliberalism, and did so decisively with GEAR in 1996. The confidence

that the ANC would be open to radical projects like RR was shaken.

Meanwhile, South African private capital, after flirting with ideas of a

new deal for workers, turned back to neoliberalism, gutting jobs, using

precarious labour, and expanding internationally.

Decline in Union Power

At the same time, the unions’ capacities and dynamism declined, even as

their numbers swelled. By the early 2000s, COSATU had outsourced most of

its political education to the SACP, as its own programmes were in

crisis. Growing bureaucracy and corruption in unions weakened

structures.

Links to political parties work both ways: fights inside the ANC spilled

into COSATU, and a growing layer of COSATU leaders saw a job in the ANC

as a profitable exit plan. The vibrant, creative, contested and

relatively democratic education forums that had been established by the

unions during the 1970s and 1980s, were to be reduced to classrooms of

workers getting either technical training on the basics of shop-steward

work, or narrow ideological and political education.

Increasingly, COSATU’s voice in the public declined, as the ruling party

acted as the political filter for the voice of the organised working

class. The lack of critical political education has contributed to this

situation, imposing an economism on the unions as the ANC has been

allowed to dominate the political terrain. Since the ANC itself and the

larger Alliance are seen as sacrosanct, COSATU focuses on working with

the ANC. In practice, this means – in seeing the ANC as leader of a

“national democratic” (NDR) phase of South Africa’s post-apartheid

trajectory – that COSATU responses are limited in scope. They cannot

envisage the ANC itself as a stumbling block on the road to a

proworkers’ society. They often tend to be about criticising certain

leaders and policies – not the party. This has led to being entangled in

factional battles within the party. This has dramatically reduced the

political influence and authority COSATU has on the majority working

class and its imaginations, many of the members of which have either

sought other unions, political parties and organisations, or have

disengaged from political activity altogether.

Problems Internal to the Radical Reform (RR) Project

The RR programme was ambitious, but some of its key ideas were actually

quite vague strategically, perhaps because the routes to

co-determination and socialism are not easily spelt out strategically.

It was never quite clear why the ANC – as a multi-class party working in

a capitalist state – should be expected to prioritise the working class.

Capitalism, as the unions admitted, was a mighty force with a relentless

drive to profit at the expense of workers – how then would worker and

union partnerships with capital through co-determination and NEDLAC not

end in unions assisting capitalism? Also, the stageist approach meant a

long-term alliance with the ANC, which brought its own problems (as we

have seen earlier in this chapter).

COSATU’s pathways to achieve co-determination are also not clear. How

would this happen? What would it mean? How would workers do this without

being made into agents of capitalism? The use of industrial Bargaining

Councils, a positive development won through struggle, became an end in

itself, rather than a means to push industry in a pro-worker and

co-determinist direction.

The desire for tripartite bargaining institutions – structured forums

for dialogue with bosses and an unclear desire for eventual

co-determination – has fostered the institutionalisation of union

activity. In the neoliberal era, these forums are continually under

attack and rendered powerless as they are turned into mere consultative

arenas, with little to no decision-making power. So unions have become

increasingly integrated into forums that are increasingly pointless.

Additionally, effective engagement in these forums requires a specific

and high-level skill set, meaning outsourcing of research and legal

representation and an increased bureaucratisation of the union. RR

policies are technical and cannot be easily developed from the

ground-up. They get given over to specialists, which then means ordinary

workers have only a limited idea of what is actually being proposed and

little space to change it.

Engaging the state and bosses, in the Alliance, parliamentary caucuses

and boardrooms cannot be done by all members of a union. As this, as

well as the tripartite structures mentioned above, is a major factor of

the RR strategy, much power becomes centralised in the hands of leaders

of the organisation due to the high-level needs of these forms of elite,

individualised engagement. This has led to increased distance between

rank-and-file members and elected leaders and a growing bureaucracy and

authoritarianism in unions.

The 1990s also saw a huge “brain drain” from the union movement of some

its most capable leaders and activists to the ANC, particularly at

election time. This has had the obvious negative effect of a reduction

in the capacity of the movement to respond – with effective RR proposals

– to the socioeconomic changes that took place under ANC rule. Another

unfortunate effect has been the increasing numbers of union members

viewing union work as less a “calling” than a stepping stone into

long-term employment in the state or even private sector.

COSATU is also part of a fracturing and fragmenting labour movement.

Many new unions have been formed as breakaways from established unions,

or as altogether new worker organisations. There has been much

discussion of the external local and international conditions that have

caused this. However, new worker formations must also be considered as a

direct response by workers to the problems they perceive in the

established unions, which are no longer attractive to them. Thus

fragmentation must also be seen as a challenge by workers to trade

unions and unionism.

Despite the definition offered above, both the literature and the

application of the RR strategy shows a distinct lack of ideological and

strategic clarity. There is no clear definitive end goal that is

established and thus intermediate milestones are not clearly

articulated. Much of this can also be related to a clear lack of

critical political education in the workers’ movement, thus not allowing

for open discussion and debate amongst workers of their organisations’

ideas and strategies, which, in turn, means that workers have little say

over the directions their organisations take.

Conclusion

Workers and their organisations have responded to their increased

impoverishment and lack of ability to impact society. I have mentioned

that fracturing and fragmentation of unions should also be considered as

internal worker responses to a distinct lack of union militancy and

democracy. These too, though, face serious challenges. Many of those who

have left COSATU have formed a new federation, the South African

Federation of Trade Unions (SAFTU), and new unions. Many of these new

formations are workplace, city and region based. Some worker leaders,

particularly those from NUMSA, have also formed a new political party to

contest state elections.

Yet, these newer formations exhibit real similarities in organisational

structure to the formations that their members have left – for example,

big man politics and a centralisation of power are also found in these

newer formations. In addition, there seems to be no real ideological

shift developing in these new organisations. For example, they may be

very critical of COSATU’s alliance with the ANC, but most still see

their political futures through the lens of political party power and

the state, and many concrete SAFTU and NUMSA proposals remain very much

in the RR framework. This limits the imagination of what a trade union

can do (and has done) as regards social transformation.

[1] Webster, E. and G. Adler. 2000. “Introduction: Consolidating

democracy in a liberalising world – trade unions and democratisation in

South Africa.” In Webster, E., and G. Adler. (eds.). Trade Unions and

Democratisation in South Africa. Johannesburg: Witwatersrand University

Press.