Reform Process for State-owned Companies - The CSC condemns the savage privatisations manoeuvres

Despite widespread criticism, the flawed government reform process for state-owned companies has reached full cruising speed. These reforms, considered seriously flawed for a wide variety of reasons, notably the exclusion of workers at a very early stage have been severely criticised by trade unions and resulted in protest marches led by the “Intersyndicale nationale du Congo”.

Moreover, the reform process from which the social partners were excluded at an early stage and which was not adequately researched, has not delivered the expected or tangible results according to trade union sources.

Subterfuge and delay tactics were used to convene tripartite sessions and other technical seminars to address concerns and to reflect on the social dimension of these reforms but a distorted image has been presented of the benefits of these reforms.

“As one swallow does not make a summer”, spring rains cannot cool down a difficult situation and reduce the glaring inadequacies in management of the beleaguered state-owned companies; these reforms are today nothing more than a “large mountain giving birth to a mouse”. The workers are really the butt of this joke.

The Trade Union Federation of Congo (CSC) did not lay down their arms or capitulate in light of this foolishness and as always adopted a position on issues of national interest affecting the lives of the working masses. The CSC will use this discussion paper to throw the cat amongst the pigeons and to condemn the hidden privatisation fuelled by the capitalistic tendencies of the State’s Governing Powers who should in fact be protecting these companies, the goose that lays the golden egg.

Since coming to power, the current President of the Democratic Republic of Congo (DRC) has engaged the country in a process of reforms. The reform process began with structural reforms and was then followed by institutional reforms given the collapse of the economy and of all political, economic and social governance.

There were several stages in this process incorporating different programmes, the so-called emergency programmes and the Emergency Multi-sector Project (EMP) and others up until the country’s admission to the Highly Indebted Poor Countries (HIPC) initiative on 23 June 2003.

The main objective of this mini recovery plan was macro-economic stability. Some progress was made, inflation fell from 4% to 2% and then to 1% and the Congolese franc began to stabilise. Meanwhile, as these structural reforms were taking place, the Steering Committee for the Reform of State Owned Enterprises (COPIREP) set up in 2002, had finished its work. It decision was to transform state-owned companies into commercial companies or public institutions We note that all these reforms were dictated by the international financial institutions particularly the International Monetary Fund (IMF) and the World Bank (WB) as well as other lenders such as the Paris and London Clubs until they reached the completion point. As a consequence, approximately 90% of the public debt was cancelled. All the policies targeted poverty reduction.

At present, the main issue is the effective implementation of reforms to state-owned companies. We fear that this is going to happen as the government announced it during the presentation of its 2012-2016 action programme (see chapter 3.2.1 page 6 Strategic Objectives) where it figures strongly.

We also highlight the letter from the Ministry of Labour, Employment and Social Affairs (METPS) sent to the “Intersyndicale nationale du Congo” inviting the trade unions to prepare modifications to provisions of the Labour Code (Ref.22/METPS/TG/5966/12 of 17 July 2012.

As we see it, the government of the DRC under the pretext of disengaging themselves from the management of these companies, would simply like to lay off these workers through the savage privatisations of essential public services which will certainly result in social upheaval.

In the coming weeks, the CSC is going to condemn this policy as it fears the consequences of the political leaders taking over these companies that are due to be turned into commercial companies.

The CSC also fears that Congolese workers will be excluded from social welfare or social progress because of their lack of purchasing power because we know that the private sector’s primary objective is profit and is never motivated by social issues.

The CSC appeals to the patriotic conscience of the government and asks them to consult with workers, one of the key and crucial elements for production and/or development.

Finally the CSC calls on all workers’ organisations to mobilise to defeat these reforms which do not take the human aspect into account.

Martin LOFETE NKAKE, VP/CSC-DRC, Member of the RSCD