Fin24

Vavi: Private sector must invest more

2012-09-18 11:27

Johannesburg - Investment policy needs to be addressed in order to deal with unemployment, Congress of SA Trade Unions (Cosatu) general secretary Zwelinzima Vavi said on Tuesday.

"The private sector is hoarding close to R1.2 trillion in uninvested cash," Vavi told delegates at Cosatu's 11th national congress in Midrand, Johannesburg.

"This is social surplus which workers have produced, and which business are refusing to invest productively."

Vavi was delivering the Cosatu political report on the second day of the conference.

A weakness of the federation was that there were no campaigns to combat capitalism, because of differing ideas which caused fights among the affiliates.

"Where is the Cosatu march to the JSE (Johannesburg Stock Exchange) to say please invest this money... We want to work with you to make sure you invest," said Vavi.

"Where are these campaigns?"

He said macroeconomic policy remained at the heart of many disagreements on the economy.

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Comments
  • denis.delaport - 2012-09-18 11:41

    Let me understand this, Invest in a country that has a violent strike every year Invest in a country that has laws that allegedly protect the majority from the minority, Invest in a country that stands idol as the coffers are plundered etc etc etc I dont think so

      fussed.anderson - 2012-09-18 12:20

      I dont quite see why the private sector would have to justify your comments. Can't you see for yourself. You should ask yourself, "would I invest"

      mc.segal.5 - 2012-09-18 13:21

      And how much is Zuma Mugabe Sexwale malema Vavi and that other trade union character >Hoarding in Cash< ??????would they invest?

  • yakballs.matabele - 2012-09-18 11:43

    Why on earth would any sane investor or board want to invest any more than absolutely necessary to maintian current ops, in SA? With Comrade Blade's outdated ideology holding sway over the thick-headed ANC and Vavi's Vampires doing their best to frighten off investors remaining and attempt suck up as much cash as possible... it is a wonder there is any investment at all.

  • elgh.elgh - 2012-09-18 11:44

    Blame your government, not the private sector. Why should the private sector use their money to satisfy your needs? Grow up vavi and stop wanting from others, get off your bladdy a$$ and work for a change.

  • charl.reaper - 2012-09-18 11:53

    The private sector worldwide is holding back on spending due to the economic uncertainties facing Europe, China and the fiscal cliff issue in the USA. Due to the nature of our economy we require those countries to want demand for our resources mainly. However growth and economic development can improve in South Africa if the labor law and the lawlessness mentality of workers were changed. It is very difficult to employ new people that don't uphold what is expected of them and then to lay them off due to poor performance is costly resulting in higher unexpected costs. The mining incident unfortunately makes the private sector aware that uneducated workers pose a huge threat to those wanting to create work where the majority of skills required are limited. In short, if the investment and transformation you seek is to be realized you will have to make it more attractive to the private sector by offering more educated and less violent workers. Hence why not force the government to live up to its promise of giving the nation the basic services it needs to form a strong base from than trying to discourage the private sector with unfounded demands.

  • tim.brink.1238 - 2012-09-18 11:56

    Since when are company profits “social surplus”? Pathetic economically illiterate unions.

      ted.hughes.397 - 2012-09-18 13:06

      AND, the companies have paid tax on those profits so there is the social element !!

  • Thebigguyjim - 2012-09-18 12:00

    Maybe COSATU should invest all their money (Stock exchange Investments and Members fees) into a mine.

  • beryl.severain - 2012-09-18 12:02

    I want to know why "Cosatu" don't invest in businesses that employ people? NO COSATU INVEST IN BUILDINGS AND BUSINESSES ON THE STOCK EXCHANGE !!!! TRY EMPLOYING STAFF AND WORKING UNDER YOUR MINIMUM WAGES AND LABOUR LAWS INSTEAD

  • crystal.core.5 - 2012-09-18 12:18

    Create a climate conducive to investment and people all around the world will invest. Or you can try the ANC way: incite racial hatred, put in place appallingly racist BEE policies designed to exclude white people from the economy, put in place a president who has over 800 changes of corruption levelled against him, who as a bonus sings "kill the boer / white person" and "bring me my machine gun" at every public gathering he attends, incite violent strikes where people carry weapons, intimidate and even murder fellow workers who do not comply, in demand of higher pay after murdering people and then DEMAND the people you publically incite violence against invest in your country. WHICH APPROACH DO YOU THINK WILL WORK?

  • george.slade.161 - 2012-09-18 12:40

    To use the ANC,s New buzzword :"Vavi is Disingenious" !! Investors want return on Investment not a bunch of morons demunding money . Vavi should be in an Assylum. What they really want is to steal all the hard earned wealth from those who worked for it .

  • john.cryink - 2012-09-18 12:41

    Please Vavi disband cosatu and the you just disappear!!!!

  • hilette - 2012-09-18 12:57

    @Vavi - two words PRIVATE SECTOR!!!!!! The reason why the private sector has so much extra cash is because they don't put it into the public sector. The only part of SA which is still running smoothly is the private sector, so NO!! They are not retarded enough to just dish out the money to ungrateful, corrupt and fraudulent departments.

  • pieter0827006294 - 2012-09-18 13:04

    Why, in what, for whom?

  • Daniel Mah - 2012-09-18 13:06

    what about the government Mr Vavi leading by example

  • deon.louw.7505 - 2012-09-18 13:09

    Rather speak to Gov. and municipalities that underspends on infrastructure and overspends on luxury items and salaries. The private sector needs to keep money to keep afloat during these dark times of labour unrest.

  • ansie.b.badenhorst - 2012-09-18 13:12

    Your money is much safer in a Swiss bank account that to invest it in this currupt country!

  • mswanepoel - 2012-09-18 13:15

    'This is social surplus which workers have produced' hey. You never hear COSATU say that maybe it is due, in some part, to proper management? The figure does seem high though. I imagine for their part they are including working capital as well which is definitely not free for investment.

  • elsie.strydom.92 - 2012-09-18 13:19

    It reminds me about all the money that is being wasted on expensive transport, parties, accommodation and hotels by the government. Why can they not use all that money to create jobs etc. and leave the private sector as it is, private??

  • clive.schonken - 2012-09-18 13:22

    Why should private sector invest more if they are not allowed to run their businesses the way it pleases them? Once you invest, you get told by government and unions how to run your business. Aikonna mr Vavi, go and ask government why people with no business sense are employed by parastatals such as Eskom and Transnet and get paid a million plus per month.

  • henk.vanrensburg.31 - 2012-09-18 13:29

    Private sector is already investing 28%???? WTF!!!

  • carol.paterson.923 - 2012-09-18 13:30

    If the private sector are hoarding R1.2 trillion then good for them. I am not in that bracket but if I had money I would hoard it as well. Why should these people invest anything in a country that is Governed by a bunch a criminal thieveswho have run this country into the ground. Oh my, wouldn't they love to get their hands on that R1.3 trillion. One more thing Vavi, I would rather burn my money than give it to you!

  • ddevilliers - 2012-09-18 13:34

    We want to invest but are turned down due to BEE. In the end, a friend of government eventually gets the tender using money they stole from government to reinvest in the public sector creating a vicious circle. The private sector gets left on the sideline by the governments own mechanisms.

  • denis.dendrinos - 2012-09-18 13:41

    Just more populist crap to gain favour. Vavi - it's amazing how private sector must forever help and come to the aid to government and are expected to invest invest invest when the government never builds or addresses the problems it should be! Yet it's always under attack from the unions and government. Pouring money into a black hole inhabited by greedy corrupt politicians won't help anyone except those greedy politicians. The private sector are the ones creating jobs. They the ones training up people and paying taxes. Municiple workers and government officials pay tax sure, but their salaries come from tax too! So the private sector is already doing more than enough. As for this 1.2 trillion - how dependable is that figure? as for this: "This is social surplus which workers have produced, and which business are refusing to invest productively." So the directors etc didn't do anything? They didn't strategise or work out how to be profitable or anything? Marketing didn't target the right groups with clever advertising to make people want the workers products? Was JUST the workers huh? *Looks around the office* Hey - no "workers" (In the cosatu sense) - yet this companies profits are from the workers? Wake up!

  • Nathan - 2012-09-18 13:49

    Oh Vavi.. you really are clueless arent you??. Im a business owner.. and you want me to invest in what?... a bunch of uneducated clowns with no experience?>..you see , the only reason my company exists is due to MY business strategy, MY risk, MY operational understanding, MY supply chain knowledge and MY passion.... in 9 months since i started the business , ive taken 10 days off... IN TOTAL... and you say the workers did this?.. sorry china.. you REALLY DONT HAVE A CLUE!!

  • alan.mounsearwilson - 2012-09-18 14:42

    Let's look at SAA, it has effectively killed all the private airlines through pricing and undercutting. We the taxpayers have to bail them out with billions of rands to prop up SAA. The management at SAA gets paid massive packages including bonuses for running a company into the ground! Let's look at ACSA (Airports Company) that has now turned a major profit, their partner is the SA government - how did they achieve this? By hiking their airport taxes because it's easy to rip the public off because there is NO OPPOSITION! Again we will see these fat cat executives claiming huge bonuses for turning an easy profit. Eskom, same story - no alternative to the paying public so prices are hiked and we the paying public cough up - its a never ending story - our small tax base is being exploited by the government and the funds are being wasted due to corruption and cadres who have been put into positions that they cannot manage effectively. Mr Vavi please focus your anger and frustration in the right direction and do not make the private sector the scape goat. Yes we make a profit and yes we employ people and through this pay huge direct and indirect taxes to the government. Private sector is not the problem and you know it!

  • bbooyse - 2012-09-18 14:45

    ...Which private company would invest in a country ruled by a party that considers nationalisation? .. «Shakes head»

  • bbooyse - 2012-09-18 14:50

    Simple - why invest in a country that debates (and dare I say considers) nationalisation?

  • napolita.kio - 2012-09-18 16:03

    Dear Mr Vavi Your statement "The private sector is hoarding close to R1.2 trillion in uninvested cash," refers. - Are you aware that you are a private citizen? If you are not aware, then be for it is so. - As a private citizen, is your money fully invested or are you also "hoarding", albeit at the bank? The "social surplus" if any such a thing exist would be the money taken from private citizen (read:taxes)! And so, yes, it is true, the "social surplus" was "produced" (or more appropriately earned) by the workers. Companies employ people whom they pay. The owners of companies (shareholders) are private citizens (including yourself) who have earned their money by employing their capital. So please, look at private companies as you would look at your own bank account! Hence, nothing in law or by way of morals would force private citizen/companies/shareholders to invest. I to acknowledge that you are not an economist, however, I do not excuse you of your ignorance of something as basic as the subject at hand. Wow....

  • khathutshelo.muafrica - 2012-09-18 17:29

    @nathan i think educating those 'bunch of uneducated clowns' with no experience is wat vavi is saying abt investing in community

  • frederikrudolph.vandyk - 2012-09-18 22:16

    Point of clarity: who earned the money? To whom does these businesses belong? Therefore, who can choose what and where to invest how much? Drop the authoritarian socialism, Vavi. History knows the truth!

  • SarelJBotha - 2012-10-25 14:40

    Vavi, wake up. It because the unions and workers are trying to be the bosses that these things happen. Workers demanding a so-called living wage drives businesses into the ground and then who suffers? It is time to get real and work for what your job is worth or ship out.

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