Today's Labour News

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fawuBusiness Report writes that the Food and Allied Workers Union (Fawu) has noted with deep concern results of the latest study by the Ipsos Research Institute on the rise in illicit trade of cigarettes.  

The trade is reportedly costing the economy an estimated R8 billion loss in revenue, while illicit sale of cigarettes has increased to 42% of total market share, with a reported four out of every 10 cigarettes estimated to be illicit.  Earlier this year, Fawu had demanded that the National Treasury should equip the SA Revenue Service in order to strengthen its abilities to investigate and prosecute those responsible for the manufacturing and sale of counterfeit goods.  “Till this day, Fawu is still waiting on a response in terms of an action plan to act against illicit trade.  It is therefore not surprising that illicit trade is booming in South Africa due to the poor ability of the responsible institutions to trace and prosecute culprits,” Fawu indicated in a statement.  Mohau Mokhele, shop steward secretary at British American Tobacco SA, observed:  “These illegal cigarettes are so cheap that it’s impossible for an employer that is paying its tax to remain in business.  This threatens my job.  It threatens the jobs of my co-workers, our families and our town, Heidelberg.”  He also expressed his worry about the 10,000 jobs on tobacco farms in SA.

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