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[Julio Pino <jpino@xxxxxxxxxxxx>]

ANC to unions: Let's not let this equality thing get out of hand.
February 5, 2000


          South African Leader Warns Unions Not
          to Impede Development

          By RACHEL L. SWARNS

               CAPE TOWN, Feb. 4 -- In his sharpest challenge yet to South
               Africa's powerful trade unions, President Thabo Mbeki vowed
          today to relax restrictive labor laws, speed the pace of
privatization and
          reduce spending in the bloated public sector.

          Addressing Parliament in his first state of the nation speech,
Mr. Mbeki
          highlighted the country's brightening economic fortunes and
signaled that
          his government would publicly battle the unions if they stood in
the way
          of desperately needed foreign investment and growth.

          Since 1994, when South Africa elected its first black government,
          inflation has fallen to 5.2 percent from 12.5 percent, he said.
Foreign
          reserves, which stood at $5.2 billion last year, have surged to $7.4
          billion. And the economy, which experts say grew by less than 1
percent
          in 1999, is expected to grow by at least 6 percent during the
next two
          years.

          Mr. Mbeki said the nation needs such growth to tackle the daunting
          challenges of poverty and unemployment. And he warned that he would
          not allow organized labor -- which has long supported Mr. Mbeki's
          party, the African National Congress, but bitterly opposes its
fiscally
          conservative policies -- to threaten such growth.

          "Jobs, a better life for our people in the context of a growing
economy
          and our standing in the eyes of the investor community cannot be
held
          hostage by elements pursuing selfish and antisocial purposes," he
said.

          He did not say which labor laws would be changed, nor did he
indicate
          which government agencies might be privatized next. But his remarks,
          which were applauded by opposition parties and business leaders
here,
          were clearly made with an eye to investors abroad, who have long
          complained about South Africa's tough labor laws, which make it very
          difficult to transfer, reassign or fire employees.

          And just six months into his presidency, Mr. Mbeki seemed determined
          to show the world that he would take the necessary steps to
liberalize the
          economy, even if that meant antagonizing his old allies in the
          anti-apartheid struggle.