Johannesburg - Cosatu's acting national spokesperson, Matthew Parks, says that the massive increase in the price of fuel on Wednesday provided a further blow to an already fragile economy and struggling working class.
Parks said that the trade union expects the government to act decisively to intervene on behalf of workers and poor households.
‘’The increase in petrol by 95 cents, diesel by R2.84 cents, and paraffin by R2.78 cents spells bad news for all South Africans, but the impact on poor families will be even worse. It will spur inflation, which had been falling, to rise next month and thus nudge an already zealous Reserve Bank to increase the repo rate once again. Poor households are already struggling to survive under these difficult conditions, and an increase in the price of paraffin will leave many poor families worse off,’’ added Parks.
Parks said that an increase in fuel prices would create a level of hardship for a society that is already suffering from high levels of unemployment and stagnant or declining real wages. Low- and moderate-income families are going to be plunged further and further into debt because their wages are now inadequate to afford the basics.
He said that the government should consider expanding subsidies for public transport and investing in our transport system.
‘’There is an urgent need to improve the quality and efficiency of public transport, particularly in poorer communities and rural areas.’’
‘’This unrestrained escalation in the cost of living will poison the upcoming wage negotiations and will automatically push our affiliates to demand above-inflation salary adjustments for our members,’’ he said.
The Star