Zuma’s final battle for control of the ANC

The power struggle between President Zuma and trade union leader Zwelinzima Vavi is a prelude to a battle for wider control of the political landscape.


Today, Julius Malema appears in court. Today the once-feared former ANC youth leader cuts a sorry figure. His assets have been seized; his unfinished luxury home in the exclusive Johannesburg suburb of Sandton is up for sale.

Malema and his associates are accused of fraud, corruption, money-laundering, and racketeering. Few believe he would be facing these charges had he not challenged the South African President, Jacob Zuma. It was a confrontation Zuma won, and Malema was expelled from the ANC.

Had this not taken place he – like Zuma himself – would almost certainly been able to use South Africa’s complex legal system to bog down, postpone and put off any trial indefinitely. Stripped of his political immunity, Malema must now take his chances.

The removal of Julius Malema left President Zuma with only one critic of real standing within his movement – the leader of the Cosatu trade union movement, Zwelinzima Vavi. The unions, resurrected in the Seventies after their suppression in the Sixties, are part of a formal alliance with the ANC and the Communist Party.

But the relationship has become increasingly fraught. Vavi is a free spirit, not cowed by Jacob Zuma and – with the support of the nearly two million-strong trade unions – a force to be reckoned with. It was with the backing of the unions and the Communist Party that Zuma defeated former President Thabo Mbeki in December 2007, to take the presidency of the ANC and then the country.

The Zuma–Vavi–Communist Party axis soon began falling apart. Vavi resisted attempts to bring him into government, criticising the Communist Party general secretary, Blade Nzimande, for taking up ministerial office. Relations deteriorated further when Vavi laid into the Communist Party leader for ordering a R1.1 million (£80,000) 7-series BMW as his official government vehicle

Since then tensions between Vavi and his allies steadily increased.  Now there are attempts to remove him from the union leadership. But Vavi is fighting back, with the help of the influential metalworkers union, Numsa. A statement published by the metalworkers earlier this month came to his aid.

“These forces inside and outside Cosatu who miserably failed in their endeavours to have general secretary comrade Vavi dethroned in the 2012 Cosatu national congress ... now want to go behind the backs of their members, who demonstrated confidence in the leadership of comrade Vavi, want to use the smaller leadership of the Cosatu central executive committee (CEC) to stage a coup,” said Numsa. “As Numsa, we refuse to allow Cosatu to be used by greedy and power-hungry individuals who have lust for positions of power in the broad liberation movement and the state.”

Vavi has used his links with a range of civil society organisations to bolster his position. On 18 April  he issued a statement on behalf of 39 civil society groups, announcing a mass mobilisation against corruption and abuse of power. The organisations, meeting as the National Anti-Corruption Forum, declared that “corruption is the biggest threat to our young democracy” and that the forum will therefore be developing a “concrete detailed platform” to mobilise civil society. 

But Vavi’s enemies have hit back. They have laid their own charges against the Cosatu general secretary, alleging that he himself was involved in corrupt practices. They accuse Vavi of deliberately undervaluing a Cosatu owned building, suggesting that members of Vavi’s family benefitted from its sale – a charge he strongly denies. Among his critics are the police union, which made the complaint

The tension between the unions and the wider alliance has long been predicted. During the Fifties the progressive union movement, Sactu, came under such ANC dominance that it became a battering ram in the party’s confrontation with the apartheid government. Sactu fell apart and when the unions were re-formed in the mid Seventies activists were determined this should not be repeated. While they supported the fight for liberation they guarded their independence. In a key statement in 1982 the union movement outlined their concerns.

"It is, therefore, essential that workers must strive to build their own powerful and effective organisation even whilst they are part of the wider popular struggle. This organisation is necessary to protect worker interests and to ensure that the popular movement is not hijacked by elements who will in the end have no option but to turn against their worker supporters." 

Exactly those ‘elements’ have now taken control of large sections of the ANC, just as the unions predicted. They run the party for their own ends, using the resources of the state to feather their nests. The resulting tensions with their union allies are inevitable.

These developments come as electioneering for next year’s general election has begun. The ANC – weakened by internal conflicts and general public apathy – desperately needs the organisational strength of the Cosatu unions to bolster its campaign. But before that can get under way Zuma and his allies are determined to remove the one obstacle that stands in the way of their complete domination of the ANC-led alliance. Settling their scores with Vavi is a prelude to their wider control of the political landscape. 


Zuma and Vavi in 2006. Photograph: Getty Images

Martin Plaut is a fellow at the Institute of Commonwealth Studies, University of London. With Paul Holden, he is the author of Who Rules South Africa?

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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.