Retrenched Workers Create 1000 Jobs

Following retrenchment that were prompted by the need for the University of Fort Hare to cut back on excessive overhead costs in 1997, 900 of the retrenched workers came together and established three workers’ co-operatives that have now created about 1000 jobs. The co-operatives were launched at the university earlier in April this year.

The national general secretary of the National Co-operatives’ Association of South Africa, Tebogo Phadu, said the retrenched workers, with the help of the National Education, Health and Allied Workers Union (Nehawu),came together in 1998 and established three workers’co-operatives-the Chris Hani Security Services, the Harry Gwala Catering Services and the Nomzamo Cleaning Services. They are registered under the Cooperatives Act. Fort Hare supported them by awarding tenders to Nomzamo Cleaning Services in June last year for cleaning service, grounds maintenance, and catering for two students dining halls.

Phadu said the co-operatives also have a contract with the University of Zululand for cleaning, security and cleaning and catering, and have just won a tender at that University of the North for cleaning and gardening.

A spokesperson for the cooperatives Ntombokuqala Mbane said, giving birth to these economic units was painstaking and included difficulties arising from forming a business enterprise, owned and controlled jointly and democratically by its membership. Each member paid R1000 for a share in the cooperatives. “The basic objectives of the cooperatives were to create employment opportunities for the community to create wealth for the stakeholders and members of the larger community, and conservation and preservation of the environment, “Mbane said.

The three co-opeatives have also jointly established a bank, Amandla Saving and Credit Co-operatives, which is open to members and to Fort Hare staff, students and the Alice community. Amandla is based at Fort Hare and is affiliated to the Savings and Credit Cooperatives League. Phadu said the former Fort Hare workers had made a positive contribution to fighting the high rate of unemployment in the region. A 15 member board of directors selected from the membership governs the cooperatives.