EWN reports that there are concerns from workers and the business sector that this week’s record fuel price hike could lead to job cuts and, in worst case scenarios, the forced closure of small enterprises.
According to the Road Freight Association, consumers will simply not be able to afford to buy certain products, which could see small businesses closing shop. Spokesperson Gavin Kelly used the food retail industry as an example, saying that it was an extremely competitive sector and that a lot more businesses would be seen going into financial distress. Meanwhile, Cosatu's Sizwe Pamla said the trade union federation feared that the unemployment rate would only continue to increase. “If we allow this to continue we won’t only have a technical recession, but we will have a depression for years to come,” he stated. Meantime, government, business leaders and organised labour will meet on Thursday for a jobs summit, which is aimed at creating and safeguarding jobs in a struggling economy.
- Read this report by Mia Lindeque at EWN
- Read Cosatu’s press statement on the fuel increase at Politicsweb
- Read too, Fuel price hike more far-reaching than you think, at Moneyweb
Get other news reports at the SA Labour News home page