Cosatu calls on Ramaphosa to tighten business rescue legislation

The demand followed the failure of the Edcon business rescue plan after workers had poured R2 billion of their savings and the general low rate of success the plan enjoyed.

President Cyril Ramaphosa at the Union Buildings on 15 August 2020. Picture: GCIS

JOHANNESBURG – The Congress of South African Trade Unions (Cosatu) on Wednesday called on President Cyril Ramaphosa to tighten business rescue legislation and sign into law several labour amendments, which were passed by Parliament over a year ago.

The demand followed the failure of the Edcon business rescue plan after workers had poured R2 billion of their savings and the generally low rate of success the plan enjoyed.

Cosatu held a briefing on Wednesday on its central executive committee (CEC) meeting outcomes.

On business rescue, Cosatu said that practitioners only pursued self-serving interests and should be regulated more strictly.

“On the conduct of business rescue practitioners, especially in the case of Edcon, the federation demands the amendment of the Competition Act of 2008 that deals with the business rescue so that it can introduce more stringent regulations. Business rescue has a very poor success rate of 33%,” said Cosatu’s general secretary Bheki Ntshalintshali.

Cosatu was overall unhappy with Ramaphosa’s performance in office.

But more pressing for the labour union federation was for the president to bring into effect several pieces of legislation, including the Public Investment Corporation (PIC) Bill, the Unemployment Insurance Bill, and labour laws extending parental leave.

The PIC Bill will provide guidelines for making investment decisions, an important intervention following the damning findings of the Mpati Commission over the entity’s standing.

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