Today's Labour News

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cosatuSowetanLive reports that in a move that seeks to shake up existing ownership patterns in the financial sector, trade union federation Cosatu has resuscitated its old resolution to establish a workers' bank.  

This would be to ensure that workers have access to credit facilities, which they often do not qualify for at SA’s four major banks.  Several studies by the Public Service Commission (PSC) have found that the majority of the country's public servants, who are mostly Cosatu members, are over-indebted and are not eligible for home loans.  Last week, the federation announced that its recent central executive committee (CEC) meeting had decided that research projects should be undertake to explore the workers' bank model.  The decision to form such a bank stems from a 2009 Cosatu national congress.  Although at the time, U-Bank, formerly Teba bank, was identified as the ideal vehicle for the implementation of the resolution, the plan fell flat as Cosatu affiliates jostled for equitable shares in the entity.  Cosatu said its affiliates, which own billion-rand investment companies, would explore using union funds to raise capital for the venture.  The organisation's first deputy president, Mike Shingange, said they would also begin the licence application process.  Other trade unions and federations would be invited to be part of the venture.

  • Read the full original of the report in this regard by Theto Mahlakoana at SowetanLive

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