Cosatu facing financial crisis says Vavi

The country's biggest trade union federation, Cosatu, is facing financial problems, its secretary general said on Sunday.

The expulsion of the National Union of Metalworkers of SA has impacted negatively on Cosatu's finances, he said.

"Cosatu is currently living off R300 000 a month beyond its income. Cosatu staff could only be paid in February and March by raiding the Political Fund designed for other purposes...this source will dry up soon."

Numsa was expelled from the federation in November.

Numsa, with the biggest membership of over 350,000 members, has been withholding its monthly R11 million payment to Cosatu, he said.

"You cannot decide to kick a union out without considering the financial implications."

The dire financial situation was a recipe for a complete loss of independence for the federation, Vavi said.

"Our research institutions, Naledi and the Chris Hani Institute will have to close down, the shop steward magazine will have to close down.

"And more so, this very Cosatu house can't be maintained with the insistence of tenants to stay free."