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.