Cosatu condemns latest bread price increase

11 April 2016 - 19:45 By TMG Digital

The Congress of South African Trade Unions (Cosatu) has strongly condemned the 34% increase in the import duty on wheat that is expected to result in a rise in the price of bread. It said current estimates showed that this decision would cause the price of bread to increase by an “astronomical 10%”.“What is alarming is that this increase follows on the back of an increase in the price of fuel and electricity ‚and this price escalation of these twin basic necessities has not yet been factored in this current bread price increase‚” Cosatu said. “We call on the South African government and Treasury to revisit this decision and come out with a more pragmatic approach that will protect the poor from this price increase fallout. The South African Reserve Bank increased the interests’ rates not long ago‚ repealing the wages of the workers and this decision will drown an already sinking workforce.“The federation is worried because bread is a stable food of most poor households‚ who are already taking a serious strain from the escalating food prices.It is unacceptable that workers who work in bakeries and on the farms will find themselves struggling to afford the same bread that they spend their days toiling to produce‚” the trade union federation added.These runaway price increases would create a fertile ground for difficult wage negotiations and strike actions‚ it warned.“Unions and workers will have no choice but to demand better wage increases in this year’s bargaining round to compensate for the fact that the wages of their members have been repealed by these increases.”..

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