The Congress of South African Trade Unions (COSATU) is calling on the National Treasury to consider releasing R10 billion from the Central Energy Fund (CEF) to cushion the public against soaring global oil prices, poverty and unemployment.
COSATU submitted a list of demands to Finance Minister Enoch Godongwana ahead of his much-anticipated Medium-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday afternoon.
Speaking on YOU FM Newshour, the union’s parliamentary co-ordinator, Matthew Parks, said the financial relief was urgently needed, as workers were struggling to make ends meet.
“It is incredibly difficult for workers to survive right now. They’re being squeezed from all sides, with diesel at R33 a litre. Everyone is feeling the pain.
“Commuters using buses and taxis are facing constant fare increases, and people who drive to work are being hit just as hard.
“The Minister doesn’t have to look far to find the R10 billion; that money is already there. Its only purpose is to protect society from skyrocketing oil prices, not to fund other projects, and South Africans deserve relief,” Parks said.
He defended the union’s proposal against critics who argue that the relief would be short-sighted and have little or no impact on workers already facing an economic crisis.
“People are not surviving; that’s the bottom line. The economy is shrinking, the cost of living continues to rise, as we have seen over the past quarter, and workers with loans are struggling.
“So, economists can say whatever nonsense they want to say. The reality is that even if people receive relief for just one day, that one day will be appreciated,” Parks explained.
He expressed confidence that the conflict in the Middle East, which has driven up global oil prices and contributed to petrol price increases of more than 25% and diesel price increases of 50% in South Africa, would soon end.
In addition, COSATU has called for an inflation-linked increase to the COVID-19 Social Relief of Distress (SRD) grant, despite concerns that the government’s fiscal resources are already stretched to their limits.
“All we are calling for is an inflation-linked adjustment. The cost of these adjustments amounts to about R1.7 billion.
“Are we saying that, within a R2.7 trillion budget, we cannot find half a per cent to provide eight million people with an inflation-linked adjustment?
“This would enable them to buy necessities such as bread, petrol, milk and electricity. The adjustment would likely cost R1.7 billion out of the R2.1 trillion budget.
“I am sure we can find that money, and I am certain we can approach some government departments to secure it,” Parks said.
