The Congress of South African Trade Unions (COSATU) is deeply concerned about retrenchments announced recently across various sectors given our dangerously high unemployment rate of 42.9%, with youth unemployment currently at 73.1% and sluggish growth of 1%.
Ford announced its plan to cut 470 jobs last week saying it was adjusting its manufacturing operations. Tyre maker, Goodyear SA, shut its doors permanently and left 900 workers jobless, albeit they were compensated. Despite government efforts to support it, ArcelorMittal SA (AMSA) has decided to pull the plug on its long steel operations in Newcastle and Vereeniging by end of September, putting 3 500 direct jobs and an estimated 100 000 jobs along the value chain at risk.
Glencore has said it is consulting recognised unions regarding job cuts although it wasn’t immediately clear how many workers it intends to retrench. The miner cited rising electricity costs and economic pressures as some of the contributing factors to the suspension of production at some of its smelters. AMSA has also decried high energy costs, inefficient and high transport costs, and cheap imports flooding the local market.
COSATU has sounded the alarm on the unaffordable price of electricity and relentless increases that have seen rise by 450% since 2006, squeezing working-class families, robbing them of money to buy food and other essential goods, as well as starving the economy of badly needed stimulus. No wonder 70% of households are drowning in debt.
To stem the tide of job losses, the Federation urges government to implement key interventions including moving all consumers to prepaid electricity meters while provisioning free allocation for indigent households; disconnecting all illegal connections with the help of law enforcement agencies; revamping Treasury’s debt relief package for municipalities that collectively owe Eskom more than R94 billion; stemming wasteful expenditure, crime, corruption and vandalism.
The 30% tariff imposed on South African exports to the US is set to further impact the automotive, manufacturing and agricultural sectors. It is urgent that the South African government ramp up engagements with the US to ensure that these tariffs can be lowered and a mutually beneficial new trade agreement put in place. The Federation will continue to work closely with the South African government to ensure that this can happen, that new trade markets can be sought and measures to cushion affected sectors and jobs be put in place.