Pretoria – In order to bring about stability, and bring back confidence and trust in the markets, it is necessary for the finance minister and president to complete their terms to 2019, suggested Dennis George, general secretary of the Federation of Unions of South Africa (Fedusa).
George spoke to Fin24 following a meeting with President Jacob Zuma at the Union Buildings. The labour federation raised issues to be addressed by the different social partners in an effort to avoid a sovereign downgrade by ratings agencies later this year.
“We think it is important for Pravin Gordhan to remain as the minister of finance until 2019,” said George.
Fedusa, along with the Congress of South African Trade Unions (Cosatu) and National Council of Trade Unions (Nactu) accompanied government and CEOs of major companies in an international roadshow to boost investor confidence in South Africa earlier this year.
Among the issues raised was the appointment of three finance ministers within one week and the possibility of South Africa to default on payments of its sovereign bonds, explained George.
He added that ratings agencies were concerned about labour relations, as South Africa had a bad track record.
WATCH: The role of labour in staving off a sovereign downgrade
Following reports that Zwelinzima Vavi will be starting a new labour federation, George said: “It’s like walking down a street with three fish shops, and someone else is going to open another fish shop. I do not think it is going to make a difference or add value.”
He added that South Africa already has three existing labour federations and that Fedusa would not be joining the new labour federation given that it had been in existence for over 20 years.
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