Shortage of jobs is a big worry for union

THE Food and Allied Workers Union (Fawu) would hold an extended executive committee meeting next week to raise concerns about continuing job losses exacerbated by a stagnant economy.

General secretary Katishi Masemola said yesterday that despite its modern economy, South Africa’s rising unemployment rate was reaching a serious crisis point.

“Despite our modern economy, our relatively stable political system and our demographic make-up, South Africa still holds the position of having one of the highest unemployment rates in the world of 26.7%.

“We know that if the socalled discouraged job-seekers are included, then the unemployment rate is at 37.4%,” Masemola said.

Shocked

He added that between 5 000 and 8 000 workers in the beverage industry faced the chop if the government implemented a sugar tax.

The sugar tax is a tax on sugary beverages aimed at reducing consumption of drinks containing added sugar, in a bid to curb obesity.

Masemola said the National Treasury was pressing forward with implementing the sugar tax in April this year, despite its own research showing that it would result in job losses.

The poultry sector was also bleeding jobs as chicken imports from the US flooded the local market.

“While economic policies and political factors are responsible for the downturn and job losses in other developed and developing countries, our problems are selfinflicted, emanating mostly from poor, short-sighted decisions by our government and with little, if any, consultations,” Masemola said.

He added that his union was shocked at how the government was handling the jobs crisis.

The extended meeting, taking place in Joburg next week, would see invited experts and analysts discuss ways in which job losses could be mitigated.

Fawu is a former affiliate of Cosatu. – ANA