Disconnect Between Government & Alcohol Industry

 FAWU notes the coming pronouncement by the State President on decisions advanced to cap the spread of corona virus of which some of these decisions relate to the alcohol ban. It is already a fourth time without any intervention by the government to address the devastating effect in the industry. The government appears only when banning and  opening alcohol as if it is tap water. 

The government falsely claim to be in consultation with all stakeholders while the industry has been adversely affected and suffering. Our government has been silent and afraid to approach big players in the industry to support the lowest paid workers and the informal economy, including the government being involved in the funding as well. It is reported that over more than 1 900 formal jobs were lost between December 2020 and March 2021 adding to over 11 million of the unemployed. This number is expected to grow across all sectors of our economy because of the government who only impose decisions without engaging the very same people it claims to represent.

All the above happens while over 20 % market share is enjoyed by  illicit traders particularly in the alcohol industry, which leads to the country losing billions per annum again without any government  being directly involved to meet with the participants in the industry and conclude on clamping down illicit traders. 

FAWU has further noted that some participants in the industry have decided to approach the courts against the government to declare banning of alcohol as unlawful. FAWU believes that the absence of the government in discussing mitigating factors and the implications thereof such as retrenchments, cuts to workers benefits, salary cuts, shutting down mostly black-owned small businesses, disadvantaging rural communities who survive through alcohol sales, restaurants that can’t survive without selling alcohol, means that now it will be the duty of the court to pronounce on the lawfulness of government’s decisions. 

We expect government to apply its energy to access the larger proportion of the population to be vaccinated as a solution, rather than offering opportunities for criminals such as illicit traders to take over the sector.

In the coming pronouncement, we hope that the government will not only talk of opening and/ closing but commit to involve all stakeholders of which would provide a platform to discuss mitigating implications in the sectors. 

For more information, please contact the General Secretary, Mayoyo Mngomezulu on 082 440 4039 or at mngomezulu.mayoyo@fawu.org.za or the Deputy General Secretary, Vuka Chonco on 082 499 5854 or vuka.chonco@fawu.org.za