A-Infos (en) ICFTU condemns water privatisation in South Africa

["Lucien W." <029WALT@cosmos.wits.ac.za>]

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------- Forwarded Message Follows -------


------- Forwarded Message Follows -------
From: "Anna Weekes" <samwu@wn.apc.org>
To: "ZCTU Zimbabwe" <zctu@mango.zw>,
        "DEBATE" <029frb@cosmos.wits.ac.za>,
Subject: International Trade Union Federation condemns Biwater's privateering
 activities in South Africa and the world
Date: Wed, 20 May 1998 14:58:16 +0100

Public Services International, the global federation of trade unions
representing 20 million public service workers, condemns Biwater, a
privately-owned multinational company, for attempting to silence democratic
debate about water privatisation in South Africa.

PSI calls on trade unions and democratic governments worldwide  
to reject Biwater's behaviour as unacceptable, and 
to encourage open and critical debate on privatisation

PSI is releasing a specially researched report showing that there are
plenty of reasons for raising critical questions about the performance of
Biwater - as with other water multinationals.

PSI has taken this action because Biwater has made a triple attack on free
media in South Africa. The company issued a threatening letter after a
critical TV programme broadcast by South African Broadcasting Corporation
in November 1997, and in April this year threatened legal action against
two internet sites for carrying a press release by the trade union SAMWU
and a year-old article from a South African newspaper.

In each case Biwater spurned the opportunity to make its own comments and
suggest corrections. Biwater refused an invitation to appear on the TV
programme to comment on the criticisms, but chose instead to use its
economic power to threaten hundreds of jobs unless the criticisms were
retracted, stating: ["Until an apology and corrections are issued by SABC3,
parent company Biwater plc in the UK has indicated its intention to withold
its R200million investment in the proposed pipe factory in Brakpan,
Johannesburg, which was to have created jobs for several thousand local
people."  (Biwater statement 17th November 1997)].

PSI general secretary Hans Engelberts said today:

"This behaviour is unacceptable bullying from any multinational. It is
especially shocking that the owner and chairman of Biwater, Adrian White,
is a governor of the BBC, whose World Service has enjoyed the reputation
for objective broadcasting without fear of powerful corporate interests." 

PSI notes that Biwater itself has issued seriously misleading statements
claiming that it is 'one of the world's largest water companies, when in
fact it is the smallest of those internationally active, and smaller than
many
public sector water companies around the world. Such statements should not
pass unchallenged, and PSI urges Biwater to retract this misleading claim.

PSI advocates that any privatisation proposals should be subject to open,
public and rigorous evaluation against public sector alternatives. This
must include an honest and public scrutiny of the relative merits of
private and
public sector companies. PSI supports the right of trade unions throughout
the world to engage in these debates and advocate alternatives to
privatisation.

In South Africa, PSI affiliate SAMWU is urging that a public sector
alternative plan must be developed, instead of introducing privatisation on
ideological grounds. In developing countries, the growth of democracy
requires free media and free trade unions.  The interest of a multinational
company should not be allowed to suppress the interests of South African
citizens in a universal, efficient, democratically accountable water
system.

As a contribution to the debate on the water privatisation proposals in
South Africa, PSI has a special detailed research report on Biwater
prepared by the Public Services Privatisation Research Unit, PSPRU in the
UK. The report is a contribution to a critical debate on the proposals at
Nelspruit, South Africa, not an attack on one particular company; if
another company were selected in a water privatisation, then it would be
appropriate to focus critical attention on their record.  (Note to Editors:
Please e-mail SAMWU on the address from which this was sent.) This press
release, and the PSPRU report, are being released simultaneously in a
number of  countries around the world. It is also being published on a
number of www sites, in collaboration with Labournet.

Note: the PSPRU, which was established 12 years ago, carries out research
on privatisation for trade unions in the UK and for PSI. 

Key points from the PSPRU report:

Biwater have made the seriously misleading claims that they are 'one of the
world's largest water companies', when they are the smallest of the private
companies which are internationally active, and smaller than many public
sector water companies in many countries, including South Africa. 
    
A recent report by the UK regulator, OFWAT, puts Bournemouth Water,
Biwater's water supply company in the UK, in the lowest category for
customer service.

A World Bank report noted 'operational, financial, and political
difficulties' with Biwater's sewerage concession in Puerto Vallarta,
Mexico. 

Biwater's overseas contracts for constructing water supply schemes in
Malaysia and Nigeria have been the subject of disputes over satisfactory
completion. 

Biwater has relied heavily on support from British governments in winning
contracts, and was a major beneficiary of trade-for-aid deals in the past.

CONTACT:

PSPRU: David Hall, office phone: +44.171.388.2366; home
phone:+44.181.858.1605;
fax: +44.171.388.3646; email: pspru@pspru.org
SAMWU: Anna Weekes, phone: 021 6971151/2/3; fax: 021 6969175.

Note to editors
Public Services International (PSI) is the International Trade Union
Federation which represents public sector trade unions in 137 countries
around the world. The affiliated unions, 513 in number, cover some 20
million public sector members. PSI is an autonomous body which works in
association with Federations covering other sectors of the workforce and
with the International Confederation of Free Trade Unions (ICFTU). PSI is
an officially recognised non-government organisation for the public sector
within the International Labour Organisation and has consultative status
with ECOSOC and observer status with other UN bodies such as the UNCTAD and
UNESCO. PSI has taken a number of initiatives over water privatisation.

Franco Barchiesi
Sociology of Work Unit
Dept of Sociology
University of the Witwatersrand
Private Bag 3
PO Wits 2050
Johannesburg
South Africa
Tel. (++27 11) 716.3290
Fax  (++27 11) 339.8163
E-Mail 029frb@muse.arts.wits.ac.za
http://jefferson.village.virginia.edu/~spoons/aut_html
http://pluto.mscc.huji.ac.il/~mshalev/direct.htm

Home:
98 6th Avenue
Melville 2092
Johannesburg
South Africa
Tel. (++27 11) 482.5011

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