![]() |
home / course outline / general information
/ facilitators / materials
/ summaries / links
Session 1 / Session
2 / Session 3 / Session 4 / Session
5 / Session 6 / Session 7 / Session
8
Our report detailed below:
We started off by highlighting interesting details from the other country reports.
We then had a lengthy discussion on the impact of TNC's in our own country.
It is worth noting that this was not exactly in the order of the session as prepared. However, it seemed to work out better doing this before "What are TNC's and why they are important ?"
Inward TNC's into S.A.:
| Main foreign investors stem from Britain, USA, Germany, Japan, Taiwan and more lately, Malaysia and South Korea. In the financial sector it is estimated that approximately 78 foreign banks and financial groups will be operating in South Afrca in the near future. This is likely to cause chaos in the sector. |
Examples of TNC's in S.A:
| Britain: BP; Bi-Water; Barclays could be re-investing soon. USA: Coca-Cola; KFC; CALTEX; Macdonald's Japan: NISSAN; TOYOTA, National Panasonic Malaysia: Investing in hotels and telecommunications. Will also be investing a local petroleum company - ENGEN. Taiwan: Mainly in relatively small clothing and plastics companies. South Korea: SAMSUNG; Daewoo; Hyundai (plant in Botswana - a neighbouring country) A noticeable tendency for investors into South Africa is to have joint ventures with local companies. Numerous foreign service companies from the USA have also started operating in S.A. particularly in the banking sector where specific services are outsourced to them. For example, processing of cheques or home-loans. |
TNC's and Trade Union rights:
| The bigger TNC's generally do. They also prefer to lobby the government on their concerns around labour and labour laws and
standards. The smaller companies like the Taiwanese clothing and plastics companies tend to operate in areas such as the former
"homelands" which were repressed by separate regimes controlled by the apartheid government. These areas were very restrictive for
all forms of organisation which were seen to pose a threat to the government. Change has been slow in these areas due to the nature of
change in S.A. Foreign companies in these areas tend to exploit workers more and often refuse to recognise unions. They also employ
mainly women workers. Our group also felt that perhaps the key question under this section should perhaps be rephrased to "To what extent have trade unions won rights at these companies ?" The issue is really that any company does not automatically respect workers rights, these are won in struggle historically by the working class in that country and by the extent of a specific group of workers continually push to improve these rights. What tends to happen is that the average or minimum built by this tradition of struggle and compromise eventually becomes embodied in law, which in turn changes from time to time. |
Are TNC's respecting the environment ?
| Generally not. They stretch the limits of the law regarding the environment simply for making profits. Examples: CALTEX refinery in
Milnerton near Cape Town where the residents have been battling with them for years to lower the toxic emissions from the refinery.
Residents have not been very successfull due to the company's huge financial resources which allow it to counter the residents with
sophisticated and expensive legal procedures. Similarly, foreign companies who partake in the design and building of major
construction projects like a nuclear power station (Koeberg) and steel mill (Saldahna) do not strictly adhere to the necessary safety
standards which protect the people and the environment. Thor chemicals (British)caused the fatal poisoning of workers and people
who used the river water in surrounding areas in a village of Kwazulu-Natal. Foreign companies who transport fuel along our coastline
also regularly pollute our waters. What are the main issues which they lobby government around ?
There is no investment code for companies investing into South Africa. Previously under the Apartheid government there were. However, this is slowly changing. The government and capitalists are talking about creating a "favourable investment climate" The government has already adopted new incentives for attracting foreign investment: ie. tax-concessions, profit repatriation and special industrial facilities. Certain major cities are also competing along these lines to attract companies to locate in their areas. For example, DAEWOO is being offered special concessions by the local governments/councils of Pretoria, Port Elizabeth and Richards Bay. COSATU, the trade union federation has already started to oppose the formation of Export Processing Zones in one of the country's provinces, the Eastern Cape. |
Outward TNC's:
| SAPPI (Paper company) into USA and Europe. Now one of the largest in the world. SA Breweries into Europe, Asia and Africa. Recently opened a brewery in Kenya. Currently the third largest brewing company in the world. Rembrandt (cigarettes); Pick and Pay, Shoprite, Seven-Eleven - all retail stores extend their interests mainly into Africa. Similarly, the major South African mining companies are doing likewise. Our assessment of this section: We tended to know more about TNC's investing and operating in South Africa. We therefore see it as a challenge for us to find out more about South African TNC's. |
What are TNC's:
| Many TNC's do not necessarily have an international division of labour where different parts of their commodities are produced in different countries. In the case of some TNC's which own and operate oil refineries their operations and market is almost wholly confined to their area of operation. |
Discussion:
| Once again our discussion focussed on the role of governements in relation to TNC's. From our experience, TNC's continually foster
strong ties with government. They sent regular delegations to meet with the ANC (ruling party) whilst they were still in exile to promote
a negotiated settlement which would not harm their interests. They also did this via their embassies and contact with the ANC in the
"home" countries. We also have a tri-partite institution, NEDLAC, where TNC's form part of the business constituency. Capitalists
also make regular representations to the government (lobbying). President Mandela also consults regularly with the top businessmen on key political issues before the government decides. |
Structural Adjustment Programmes in S.A. :
| We have a self-imposed Srtuctural Adjustment Programme (S.A.P) in the form of government economic policy called GEAR which stands for Growth, Employment and Reconstruction . This contains typical SAP measures of neo-liberal capitalist globalisation such as privatisation, promoting export-led economic growth, deregulation, lowering labour standards and promoting labour flexibility, tax reforms favouring the capitalists, cutting state expenditure especially social services - medical care, education and housing. We think that one of the main aims of this economic policy is to attract foreign investment. |
Evaluation of session:
| Main problem is that there was far too little time to complete the session. The required tasks could easily take up two sessions.
Participants found the session interesting and felt they learnt a lot about TNC's by merely exchanging information in the study-circle.
We also felt that unions appear to be fighting the symptoms rather than the causes. We started to already ask, how can we fight TNC's
? We are impressed by the commitment of the Peruvian comrades to the project , spending so much of their time and travelling so far.
This kind of commitment seems to dwindling in South Africa. However, the Peruvians have made us more determined. |
Aluta continua !
Yours in struggle.
The South African Study Circle.
Links Conserning this summary
Study Circles other summaries
[Session 1]/ [Session 2]/ [Session 3]/ [Session 4]
[Session 5]/ [Session 6]/ [Session 7]/ [Session 8]
[Evaluation]
Summaries of session 2
For problems or questions regarding this site contact [Alana Dave].
Technical problems and ideas contact [Technical staff].
This site was developed with financial assistance from the European Commision's Socrates Programme