GOVT MUST FACE ECONOMIC REALITIES: COSATU.

It was time for government to admit that its "ostrich-type approach" to economic realities was a dismal failure, Congress of SA Trade Unions general secretary Zwelinzama Vavi said on Thursday. He was addressing journalists in Johannesburg following Cosatu's three-day central committee meeting which ended on Wednesday. Vavi said a key concern raised at the meeting was the need for a summit between Cosatu and its alliance partners, the African National Congress and the SA Communist Party. It was imperative that one be convened in January to sort out deep-seated disagreements on macroeconomic policy, aspects of social policy and the nature and role of the alliance. Thus far it had become obvious that the government's growth, employment and redistribution policy was not going to do anything it had promised to do. The central committee reaffirmed its commitment to the tripartite alliance, but it remained a reality that the alliance faced enormous challenges. "We are hoping that the ANC will respond positively. If the summit does not take place in January, then we're in crisis," he said. There was no point in fighting each other on the contentious issue of privatisation, as a better solution could be found. "We need a Marshall Plan to grow the economy, eradicate poverty and deal with unemployment," Vavi said. He was referring to the aid program proposed by the United States to rebuild Europe after World War II, when hunger and discontent plagued the continent. "There is no compelling reason for Cosatu to change its political vision and strategy... Cosatu must continue to play a central role... to achieve its long-term vision of socialism," Vavi said. Asked what would happen if a summit was not convened he ...