Unions concerned that workers' living standards continue to deteriorate

LABOUR unions have raised their concerns about the latest findings of the Household Affordability Index, which highlight the struggle facing the working-class community.

Cosatu, Numsa and Saftu said this is a painful reminder of how little workers are paid and how much the cost of living has risen.

The report, compiled monthly by the Pietermaritzburg Economic Justice & Dignity Group ( PMBEJD), shows that average worker spends more than 57% of their salaries on transport and electricity.

The report stated that average worker spends R2,802,97 from a maximum wage of R4,854,08.

After securing transport and electricity workers are left with R2,051,11 for food and other necessities.

PMBEJD added that the price of a food basket in January was R5,433,70 while a basic nutritional food basket for a family of four was R3,830,05.

The South African Federation of Trade Unions (Saftu) said the report was vindication of the union’s countless and repeated warnings that the country was on a destructive, anti-poor, and pro-rich path driven by neoliberal economic policies and austerity measures.

The federation said for many years, it has sounded the alarm on the government’s reckless adherence to austerity, which prioritises budget cuts at the expense of essential services needed by the poor.

The union’s general secretary Zwelinzima Vavi said the index reflects the consequences of these decisions such as skyrocketing food prices, unaffordable housing, crumbling public healthcare, underfunded education and rising unemployment.

“The austerity policies pursued by the Government of National Unity (GNU), particularly under the alliance between the ANC and DA, have deepened inequality and poverty. While billions are siphoned off through corruption and corporate tax breaks, the working class is left to suffer the consequences of shrinking public services and growing privatisation,” he said.

The Congress of South African Trade Unions (Cosatu) said it was extremely concerned by these findings, adding that this was a painful reminder of how little workers are paid.

The union said this is also a reminder of how much the cost of living has risen and how deep in debt most families are.

“Key interventions that Cosatu is pursuing at Nedlac (National Economic Development and Labour Council) and parliament include easing the debt burden on Eskom to end its dependency on double-digit tariff hikes and similar interventions at Transnet, which is key to protecting food from inflation as well as support for Metro Rail to help 10 million commuters access affordable public transport,” said spokesperson Zanele Sabela.

She added that the government must return to the negotiating table at Nedlac on measures to reduce the fuel tax regime, while companies also need to reduce the wage gap and pay workers a living wage.

The National Union of Metalworkers of South Africa (Numsa) also said it was deeply concerned about how the cost of living continues to affect the lives of ordinary workers and their families.

The union's spokesperson Phakamile Hlubi-Majola said it was not surprising that the PMBEJD report stated that 57% of workers' salary goes towards transport and electricity.

“The majority of workers cannot get through the month because transport costs are very high and so is the cost of accommodation and food.

“But unfortunately wages never increase to match the cost of living.”