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Preface The Eighth National Congress of COSATU was a watershed in all respects.

It adopted a medium-term vision and programme for COSATU aimed at building working-class power.

Workers sh are in the national income continues to decline even though it increased very slightly from 2002 to 2005.

Unemployment remains stubbornly high and in many cases the quality of jobs has dropped.

The 2015 Plan, as it is commonly known, argues that we need to connect efforts to build our organisation with struggles for quality jobs in order to strengthen the power of the working class.

Immediately after the Congress, the Alliance achieved a landslide victory for the ANC in the 2004 elections.Our key weaknesses remain inadequate capacity, inconsistency and perhaps even a lack of political will t o implement key decisions of the Federation.As part of the preparations for the Congress debates, we developed and circulated a political discussion paper summarising and analysing developments over the past three years, located in broader trends over the twelve years since the democratic transition .This report first reviews the political environment.It analyses key elements, including the nature of the state and class formation, as well as political developments since the Eighth Congress.

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Despite these gains, the condition of the working class has not improved in many areas.