8.5 million jobless, economy shrinking: Mashatile tells unions to lead on AI

Deputy President Paul Mashatile told trade unions on Wednesday to put themselves at the front of the shift to artificial intelligence, warning that those who do not prepare workers for it risk letting technological change deepen inequality and exclusion.

Speaking at the Federation of Unions of South Africa’s 8th National Congress in Johannesburg, Mashatile said the rise of AI presents organised labour with what he called a historic challenge and opportunity.

“Those who anticipate change and prepare workers with the skills, protections and voice needed in the digital economy will help shape the future,” he said. “Those who fail to do so risk allowing technological change to deepen inequality and exclusion.”

He said unions must prepare to bargain over workplace data, technological restructuring and access to upskilling and reskilling, and must be able to represent workers in informal, digital and other insecure forms of employment.

FEDUSA is one of South Africa’s recognised national trade union federations and represents workers across a wide range of industries in the public and private sectors.

Mashatile challenged the federation to consider whether the institutions established to advance workers’ interests are fulfilling their purpose, noting that despite the country’s laws the labour market continues to reflect deep inequalities.

“Despite our progressive labour laws, the labour market still reflects inequalities of race, gender and disability, particularly at senior management levels. Legislation alone will not achieve transformation,” he said.

“Employers must address unequal recruitment, pay disparities and inadequate skills development. Trade unions must actively monitor whether employment equity plans deliver results.”

He said transformation must be evident in the structure of the economy rather than merely reflected in formal compliance.

On the cost of living, Mashatile said electricity has become increasingly expensive and that government is reviewing the electricity pricing policy to balance the needs of vulnerable households against the sustainability of supply and industrial competitiveness.

“We are also tackling poor maintenance, theft and weak revenue management in municipal distribution so that responsible consumers do not bear the burden of avoidable losses,” he said.

While government has made important progress in stabilising electricity generation, he said high electricity costs continue to constrain economic growth. “Electricity has become increasingly expensive, weakening energy-intensive industries such as steel, ferroalloys and chemicals, and straining household incomes. We cannot build our industry without addressing electricity affordability.”

Mashatile said the country’s most urgent national task is stronger economic growth and job creation on a scale that substantially reduces poverty and inequality, in response to an economy that contracted by 0.2% in the second quarter of 2026, with mining, manufacturing and trade under considerable pressure.

About 8.5 million South Africans are unemployed, he said, while the official unemployment rate has risen to 33.6%.

“These figures represent people unable to provide for their families, graduates unable to enter the labour market, and communities where opportunity is limited. When a factory closes, suppliers lose business, local enterprises lose customers and entire communities decline,” he said.

He said the congress theme, “Reclaiming and Organising the Future: Workers’ Dignity, Power, and Justice through Conscious Unionism in an Age of Crisis”, should inspire government and business alike.

“For government, it requires competent administration and accountability. For business, it requires responsible investment and fair employment practices. For organised labour, conscious unionism requires democratic leadership, accountability to members and ethical conduct,” he said.

“Government must show through its actions that it takes organised labour’s concerns seriously. We must create opportunities for young people, protect existing jobs, make electricity more affordable, expand industrial production and ensure that the transition to a sustainable economy is fair.”

Mashatile closed on the negotiating tradition that produced the democratic settlement. “Our democratic settlement was built on the conviction that negotiation could resolve differences. We must renew that conviction through our actions,” he said.

This report is drawn from the government’s own summary of the address, published by SAnews (South African Government News Agency) at https://www.sanews.gov.za/south-africa/mashatile-urges-trade-unions-be-forefront-ai, rather than from a full transcript of the speech.