Trade union pressures South Africa's ANC

CAPE TOWN - South Africa's trade unions and civil groups have launched a new anti-poverty organisation, straining an alliance with the ruling ANC already tested by the sacking of populist deputy president Jacob Zuma.

The group is led by the powerful Cosatu trade federation, fuelling speculation the giant union may move into active politics and challenge the African National Congress (ANC)-led government's market-driven economic policies.

The ANC won 70 per cent of votes in elections last year but is under pressure to fulfil campaign promises of tackling high unemployment of 26 per cent.

About 500 people packed into Cape Town City Hall singing and chanting pro-Zuma songs at the launch. Speakers called for a change towards creating employment and empowering the black majority and away from policies they said had cost thousands of textile and mining jobs.

"Economically we have overseen a disaster. There are a few black millionaires among us ... We never fought to make a few black people wealthy, we fought to enrich all of our people," said Tony Ehrenreich, a Cosatu official involved in setting up the coalition, which has yet to be officially named.

Some participants have likened the group -- known unofficially as the Coalition Against Poverty and Unemployment -- to the United Democratic Front (UDF), a mass movement formed exactly 22 years ago that became a powerful force in the struggle to end apartheid.

President Thabo Mbeki's ruling ANC reacted angrily to the group's formation, saying the party that defeated apartheid still had the ability to fix South Africa's problems.

"The ANC is capable of resolving the issues... They should not be making another organisation to do that," said James Ngculu, ANC chairman in the Western Cape region.

Organisers said the group was not looking to challenge the ANC but wanted to act as a catalyst for action to combat unemployment and deliver schools, health services and electricity to a majority of the 45 million population.

"We will not stand for any elections," Ehrenreich said.

"Given the crisis in South Africa, in unemployment and poverty, there is no doubt we are all challenged to find alternatives to put South Africa on a development path. This is about harnessing our collective efforts to fight poverty."

But several analysts said the formation of the pressure group reflected the frustration of labour and civil groups over an inability to influence government policies and unhappiness at a lack of service delivery.

They said it was difficult to see how the new coalition could achieve its policy aims unless it challenged the ANC.

"By definition this reflects an intellectual challenge if nothing else," said Richard Calland, political analyst with independent think-tank, the Institute for Democracy in South Africa.

"They are providing an alternative centre for policy-making and influence."

He said the timing of the launch was significant, coming as it did on the anniversary of the formation of the UDF and amid unhappiness among trade unionists over Mbeki's sacking of Zuma.

Cosatu and other ANC partners have voiced outrage over Zuma's dismissal in a corruption scandal that has shaken the ruling party.

Zuma, once seen as the frontrunner to succeed Mbeki, has strong grassroots support as opposed to the president's perceived appeal among technocrats and big business.

- REUTERS