The Congress of South African Trade Unions presented its key proposals on measures to stem the current wave of retrenchments to Parliament’s Portfolio Committee on Employment and Labour.

The economy has been battling to grow beyond 1% per annum since 2008 with unemployment remaining dangerously high at 42.4%.  Workers cannot afford to see a single job lost. 

This year has seen key sectors of the economy placed under severe pressure due to global restructuring, the United States’ new tariff regime of 30% on South African exports threatening thousands of agricultural and manufacturing jobs, an embattled steel industry amongst other key challenges. 

The increasingly unaffordable price of electricity has had a devastating impact on the industrial and manufacturing sectors, with an estimated 350 000 jobs lost over the past decade and key employers like Glencore raising alarm bells about the pending closure of further smelters and job losses.

The Federation has been engaging key government departments and businesses at Nedlac on urgent interim measures as well as long term solutions.

Given the gravity of the threats of job losses, it is urgent that government interventions to stem a possible bloodbath now be put in place.  Key measures need to include tax rebates, industrial subsidies and incentives, and fixing the endless bureaucratic blockages at the Unemployment Insurance Fund’s Temporary Employee Relief Scheme.

Special actions are needed to provide breathing space for electricity intensive users buckling under the increasingly unaffordable price of electricity.  In the interim these companies need relief of some shape.  In the longer term, Eskom needs to be supported to plug its massive financial leakages, in particular the R100 billion owed to it by municipalities that is increasing by R20 billion per annum.  This requires that all electricity consumers be moved to prepaid billing.  Similarly, Eskom needs to be assisted to tackle the corruption, wasteful expenditure, cable theft and vandalism that is costing it billions. 

Too many workers, businesses and key economic sectors are under severe strain.  Support and relief from government, the developmental financial institutions and the private banks is urgently needed.  Struggling workers, businesses and key economic sectors need practical solidarity not best wishes or PowerPoint presentations.

COSATU will continue to push government and businesses to put in place measures to save and sustain at risk jobs, businesses and sectors.  This is a battle we cannot afford to lose.

Issued by COSATU.

For further comment please contact COSATU Deputy Parliamentary Coordinator, Tony Ehrenreich at 082 773 3194 or Matthew Parks at 082 785 0687.