Nov 13th - South Africa’s ANC Seeks to Mend Ties With Labor Union Allies

By Mike Cohen

Nov. 13 (Bloomberg) -- South Africa’s ruling party said it will seek to mend relations with its labor union allies, which have been strained by differences over economic policy and the role of a new planning commission headed by former finance minister Trevor Manuel.

The African National Congress has ruled South Africa in alliance with the Congress of South African Trade Unions and the South African Communist Party since all-race elections in 1994. The unions helped orchestrate a change in the ANC’s leadership in December 2007 that culminated in Jacob Zuma being appointed the country’s president in May this year, and since then have been pushing for a greater say over policy.

Their key demands include a review of the inflation- targeting policy and for the government to scrap proposals to give Manuel the power to co-ordinate the work of other ministries, changes the ANC has rejected. The allies will seek to reach common ground at a three-day summit that gets under way near Johannesburg today.

“It is the responsibility of the ANC as the leader of the alliance to ensure that the alliance remains united,” the party said in an e-mail. “Equally, it is also the responsibility of the leaders of the other alliance components to keep the ANC strong.”

Manuel served as finance minister for 13 years, overseeing South Africa’s longest period of economic growth on record. Cosatu and the communist party accused him and Thabo Mbeki, who was ousted as president in September last year, of unilaterally deciding to sell state assets, reign in government spending and slash import tariffs.

Zuma has sought to deflect similar criticism, appointing Ebrahim Patel, the former head of the country’s largest clothing union, as his economic development minister, and communist party head Blade Nzimande as higher education minister.

To contact the reporter on this story: Mike Cohen in Cape Town at mcohen21@bloomberg.net

Last Updated: November 13, 2009 06:16 EST

Source : http://www.bloomberg.com/apps/news?pid=20601116&sid=arCEAwcO_4yE#