Friday, 22 January 2021

 

ALCOHOL BAN SHOULD NOT LEAVE  WORKERS TO SUFFER 

22 JANUARY 2021



The Food and Allied Workers Union notes with a high level of discontent how the government treats the alcohol sector unfairly in the process of wanting to curb the spread of corona virus.

 

The government continues to ban and unban alcohol as and when it decides without consulting affected stakeholders and without expressing any position on the fact that workers are going to lose jobs while the alcohol ban is in effect and without expressing any position regarding the informal traders who also survive through selling alcohol in townships and rural areas.

The government should not view its decision of banning alcohol as the ultimate solution in the process of curbing the spread of corona virus. Authorities must find ways to mitigate the negative implications of its decision to implement a ban and not leave workers to suffer alone.

 

Notwithstanding that some of our members had to endure a 10% salary cut while others were being retrenched in the earlier alcohol ban, this current ban has already led employers taking initiatives that threaten jobs such as retrenchment of workers in the brewing companies.

When government does not consider the dangerously high number of unemployed people by making decisions that threaten and leads to job losses, it goes to show that the country will ultimately end up having more than the 10.8 million currently unemployed citizens through the growing number of retrenchments we have seen and continuing since the beginning of COVID-19.

 

Furthermore, the President of the country committed to address harassment in the workplaces. While we support addressing harassment, there are other critical challenges facing the workers’ class such as a growing list of proposed and current retrenchment. Had the government consulted the affected Unions, he would have been aware of the crisis instead of deciding for workers which problems should be addressed. What good does it do to address harassment against workers who are exiting employment in the thousands while the President continues to remain mum about job losses. By now, the government should have already shared the outcome of the International Labour Conference particularly those that relates to initiatives to formulate and enforce law regarding GBV in workplaces.   

 

Not all multinational businesses suffer in the same way as workers and small alcohol traders do, because they are not on equal footing to start with. For this reason, the government must never forget its mandate to favour those who are at the receiving end in terms of inequalities. In fact, vulnerable farm workers in the agriculture and agro-processing are more likely to be subjected to unemployment, which contradicts the very same mandate of creating jobs in the country. Yet there is a deafening silence about job losses.

For many years, we have informed the government about where funds should be sourced for purposes of addressing the fiscus deficit which includes illicit cash outflows that led to the country losing about R140 billion per annum. In 2016, the South African Revenue Service already lost over 3.8% of its revenue through companies that falsified their invoices. Last year alone, illicit trading in alcohol led to a loss of over R6 billion and in other sectors, counterfeit goods of about R1 billion per annum, including corruption that amounts to over R500 billion. The shortages of beds in the health care facilities indicates that banning alcohol was not the ultimate solution but addressing all the above unlawful activities including to nationalise the entire health care system would mitigate all other adverse impact to affected workers and in the informal economy. 

We believe that these billions combined would not only have addressed and mitigated the deficit on the government spending, but would also have proven that there was no necessity for the country to embark on structural reforms and source loans from international banks. These actions weakens the country’s economy while subjecting SA into a more non-progressive ideological stance of neoliberal agenda.

The state must also take into account that it is ultimately the responsibility of law enforcement agencies to address the behaviour that lead to violence, violating regulations, corruption and most importantly, to apprehend all those who commit gender based violence and not to focus solely on the alcohol ban as an ultimate answer.

In fact, one of the calls that the South African government have been neglecting while other countries have not been shy to embark on is the introduction of wealth tax that can contribute to lessen inequalities and increase fiscus up to over 9 billion. This government preferred to focus and implement VAT to 15%, which is a regressive tax, and evidently up until now, could not address the national crisis of poverty, inequalities and unemployment. 

FAWU DEMANDS THE FOLLOWING FROM EMPLOYERS AND GOVERNMENT:

 

         The government to meet with FAWU and all affected stakeholders in the alcohol sector;

         Government should in the interim formulate a funding package designed to assist workers in the alcohol industry and for the informal economy;

         Employers to redirect their reserved funds to preserve existing jobs;

         All retrenched workers to be given first preference to return back to work in employment;

         Government should issue a moratorium on retrenchments, job cut, salary cut and benefits cuts;

         The government to address outstanding and continue to pay UIF payments during shutdown of alcohol. 

         The government to announce the figure recovered by corruption on UIF and redirect those funds to workers; 

         The government to implement National Health Insurance;

         The government to implement Wealth tax;

         Nationalisation of all strategic sectors of our economy;   

         The government must publicly announce funds that were recovered from illicit trading in the country, if any.

 

Meanwhile we support all decisions to curb the spread of the virus, but the government must listen to the people who suffer amid COVID-19. Therefore, FAWU calls on the government to urgently, meet with all affected stakeholders in the alcohol industry.    

 For more information please call FAWU General Secretary Mayoyo Mngomezulu on 082 440 4039 mngomezulu.mayoyo@fawu.org.za  or Deputy General Secretary Vuka Chonco on 082 499 5854. Released by FAWU media liaison officer Dominique Martin 082 498 5631




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