Cosatu general-secretary Bheki Ntshalintshali
Photo by: Creamer Media's Dylan Slater
Congress of South Africa Trade Unions (Cosatu) general-secretary Bheki Ntshalintshali has come out in support of government's prescribed-assets proposal, arguing that trustees of worker pension funds are currently being stymied from investing in assets that would be in the long-term interests of the country and of workers.
Speaking as the convenor of the labour constituency at the twenty-fourth summit of the National Economic Development and Labour Council on Thursday, Ntshalintshali noted that the prescribed-asset instrument had been deployed in the 1950s to support the development of several State-owned companies (SOCs).
“The trade unions have been raising this issue: where do we invest the workers’ money? For what purpose? If we don’t do it as workers, who should do it?,” he asked, while repeating labour’s criticism that South African businesses were on an “investment strike”.
“We know that in the absence of prescribed assets, trustees of our funds find it difficult to invest where the returns are low, even if it is for a good cause,” Ntshalintshali explained, adding that trade unions were prepared to support the reintroduction of the mechanism.
He also argued that the bail-out of SOCs should be separated from the investment case, while questioning the motives of those warning workers that they would lose their money if the prescribed-assets plan were to be introduced.
“We cannot afford to lose Eskom – we can’t! Those in the leadership of Eskom who have messed up must be arrested. Money stolen must be recovered, but Eskom we can’t lose . . . everyone will be affected if Eskom goes under,” Ntshalintshali said.
“The only reason we think business is raising this issue and all of a sudden they are sympathetic to the workers’ money is because they think there will be competition [for resources] if 30% goes to government bonds and the rest goes to the private sector – they don’t want that competition.”
By contrast, labour held the view that workers should decide where their money should be invested.