FAWU CAUTIOUSLY WELCOMES LIFTING OF RESTRICTIONS ON ALCOHOL, TOBACCO & HOSPITALITY INDUSTRY
The Food and Allied Workers Union cautiously welcomes the announcement
of lockdown Level two as announced by President Ramaphosa a week ago. We
hope that the return to some form of semi-normalcy, shall pave the way towards
economic recovery after previous lockdown levels that contributed to
devastating effects on the tobacco, alcohol, hospitality and numerous other
sectors of our economy. Most importantly the safety of our members on their
return in workplaces.
As the largest trade union providing a service in the agricultural and
alcohol sector, we are particularly concerned about our members and workers in
these industries who have been at the receiving end of the negative effects of
COVID-19. Many employees in the agricultural sector could not have access to
income, especially those vulnerable farm workers on the wine estates who have
experienced a total shutdown of normal operations. Many employed in these
affected industries have suffered loss of income; reduced working hours,
benefits and retrenchments after the sector incurred severe economic distress
and devastation during the initial lockdown regulations. Some businesses
have since postponed or cancelled investment initiatives and various other
business opportunities which would have otherwise contributed to job creation.
It is clear that the devastation is vast and incalculable at this stage. FAWU
is already battling with numerous complaints from our members because of the
negative effects that these bans had in these sectors.
With the lift of the bans on alcohol, tobacco we hope that this also assist
the hospitality industry which has been in a non-contributing position into the
economy and which shall desperately be in need of a recovery plan. We are
hopeful that these “broken’ industries will be revived now that some form of
semi-normalcy under lock down level two has returned. We anticipate a long and
slow process to rebuild what we had prior to COVID-19.
The focus however should not only be on the return and rebuilding of these sectors
but the protection of workers in workplaces and to know companies that violated
regulations by not paying workers since the beginning of the lockdown while
accessing funds from government.
On a broader scale, over the last couple of years, FAWU consistently
demanded that the National Treasury should be in cooperation with SARS and build
its capacity in order to be able to prosecute and arrest illegal traders of
tobacco and other products who have flourished during previous levels of lock
down. Even up until today, we have not heard a single inclusive response from
the authorities on their future endeavours in this regard. The country can no
longer afford to loose out on the billions in revenue that could assist in
trying to mitigate the heavy economic destruction brought on by COVID-19, which
became an opportunity for illicit traders.
We do however hope that the government, in future, will consult the
relevant stakeholders before shutting down whole industries and blindsiding
important role players who have had to face numerous unforeseen consequences as
a result.
Since the start of the lock down, FAWU demanded that any approach dealing
with COVID-19 must prioritise the lives of workers from the beginning of the
lock-down. We demanded it even back then from businesses operating at the time-
such as retailers, tobacco on export driven
products, pharmaceutical companies, and in all the health care facilities -that
the health and safety of workers must be prioritised before profit.
FAWU has already lost two of its members in the tobacco sector while others
were hospitalised. Over 18 members tested positive in a single plant. This goes
to show how our members are at risk while at work and if their safety is not
taken serious to advance measures to curb the spread of corona virus; more
members may lose their lives.
We are further fully aware of the economic impairment that has been
inflicted by the non-operations of many sectors in our economy. Notwithstanding
that the government is silent on the recovery plan of which on its own is
deafening. This period however should serve as a strong warning to the ruling
party, particularly from an economic policy perspective, that the return should
not follow the old policy patterns. It is clear that such policies not only failed,
but could not respond to the national question crisis of unemployment, poverty
and inequality. Furthermore, they also could not respond to COVID-19 pandemic.
It is even worse that the pandemic has not ended and as such, the country still
need a decisive policy review.
Amidst other policy challenges, it becomes an immediate necessity for
government to simply implement the NHI rather than to shift the blame to
shortages of beds in hospitals. This will not only address the shortage of beds
but the discriminatory approach of medical attention between the rich and the
poor and many issues faced by health care workers in the sector.
It is important for the government to also implement wealth tax in order
to deal with the gap between the rich and lowest paid in the context of wealth
redistribution than this to remain in an indefinite conceptual stage.
Despite the economic recovery necessitated by COVID-19, the country has
worsened its economic challenges by approaching the IMF and World Bank. This
approach does not only subject the country into even deeper debt that will largely
be an extra burden to the working class, but advances a neo-liberal agenda that
is not in line with progressive economic policies the workers mandated the
government to follow. We believe that the country is indeed capable to build
its capacity in terms of economic recovery, as it is not in a dire situation on
industrial development. Should the government disregard the policy issue; the
country will remain as it were before COVID-19 era and possibly, even worse
off.
While we welcome the unbanning of alcohol and related products, we are cautious
about the return to work of many ordinary citizens who were not able to make a
living with the ban in effect during lockdown. These poor citizens suffered
more than large corporates and the return on their part shall be the beginning
of a struggle to be in business again. This part of the economy has had
devastating effects as it has been taken over by illicit traders. Most legitimate alcohol and tobacco small
entities/ traders shall find it extremely difficult to effect a shift from the
illicit traders who enjoyed unfair trading during the ban of tobacco and
alcohol towards a reasonable market share in their segment. It is important for
the government to realise the adverse impact this has caused and, therefore, a
return is not the ultimate solution.
FAWU Demands the following from
Employers and Government:
- Employers to ensure health and safety for all workers returning to
work;
- All retrenched workers to be brought back to work on all job openings
or companies in complete operation;
- The government to announce the number of all additional Labour
inspectors employed and expose the companies that violated Health &
Safety in workplaces, including the access of funds from government without
paying workers;
- The government must formulate an economic recovery plan for the
informal sector for it to be able go back its normal operation;
- The government to implement National Health Insurance;
- The government to implement Wealth tax;
- The nationalisation of all strategic sectors of our economy;
- The government to come up with a
comprehensive multi-discipline program to address illicit trading in the
country.
We hope state authorities will not disregard all these demands and hope to have business as usual because there will be no sustainability in these sectors, let alone their contribution towards economic growth in the country.
For more information, contact FAWU General Secretary Mngomezulu Mayoyo on 082 440 4039.
