South Africa’s biggest labor-union federation and a key political ally of president Cyril Ramaphosa is pushing the government to tap state institutions for a stimulus plan to combat the fallout from the coronavirus outbreak.

The Congress of South African Trade Unions, which represents about 1.8 million workers ranging from miners to teachers, wants state companies such as the Public Investment Corp, which oversees government pensions, to provide relief to hard-hit industries including hospitality, manufacturing and mining.

It’s also seeking private companies to contribute. We want them to “mobilize a public- and private-funded stimulus plan that can target heavily affected economic sectors,” Matthew Parks, the federation’s parliamentary coordinator, said in a response to questions.

Talks are taking place with business and government representatives at the National Economic Development and Labour Council. South Africa’s government has limited fiscal space and is facing a long recession as measures to contain the pandemic shut down industries.

It’s had to bail out the indebted state power and airline companies and lost its last investment-grade credit rating at Moody’s Investors Service on Friday. Still, there is significant financial firepower in some of the institutions over which it has influence.

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