Cosatu stands up for poor people's health and jobs

Thandisizwe Mgudlwa
 

COSATU is taking up health matters affecting the poor to the next level.

The federation is to present its submissions on Treasury’s Proposed Tax on Sugar Sweetened Beverages to the National Assembly’s Portfolio Committees on Finance and Health’s public hearings on Tuesday, last week in Parliament.

Cosatu agrees with government that over consumption of sugar is a national health crisis.  "It is a key cause of South Africa’s battles with obesity, diabetes and related health conditions.  These have a massive impact upon working class families’ health."

However ,Cosatu is equally worried about the economic impact of the proposed tax and that it is likely to result in thousands of job losses. 

A report by the federation notes, "The sugar, fruit and beverage industries, like so many sectors in the economy, are already battling with a depressed, growth less and job losing economic climate.  One more knock may result in these sectors’ collapse and de-industrialisation.

Thousands upon thousands of workers have already lost their jobs in the mining, poultry, retail, banking and agricultural sectors.  Unemployment has increased to dangerous crisis levels of 36%.  Government has shown itself time and again, to be found incompetent when it comes to protecting and creating jobs.  Painful examples are the textile, mining and poultry industries.'

Meanwhile, Treasury estimates at least 5000 jobs will be lost due to this tax. 

And Cosatu feels that this is likely to be a gross under estimate.  "Yet Treasury has no plan to prevent these job losses."

On the other hand, business believes job losses are more likely to be up to 72 000. 

Cosatu asks, "With jobless growth, can we afford to lose thousands of more jobs?  A tax on sugar will have a devastating economic impact upon rural towns dependent on growing sugar cane in KwaZulu-Natal and fruit farms in the Western Cape and Limpopo.

Whilst Cosatu agrees with government that we need to promote healthy lifestyles, this should not be at the expense of badly needed jobs.  Proper engagements between government, labour and industry at Nedlac are needed to find an inclusive win-win approach that promotes health needs and job protection and creation.  COSATU will be meeting government at Nedlac on this urgent matter this week.  Alternatives need to be discussed on how to promote healthy diets."

In addition, Cosatu says, "If government wants economic sectors to shift to healthier products, then it needs to provide the necessary financial and other support and realistic time frames to these sectors to undertake these transitions.  Business equally needs to commit to protecting and creating jobs and not to look for any excuse to fire impoverished workers.  Promoting healthy diets does not need to come at the expense of thousands of farm workers’ jobs.

Government needs to appreciate and learn the importance of proper planning and inclusive engagement with labour and industry and to stop managing the economy with big bang experiments that render thousands of workers unemployed and bankrupt.  Government must equally not to seek to balance the budget caused by free spending careless Ministers on the backs of their poor and at the expense of farm workers’ jobs," added the federation.