By Thys Khiba – In a radio interview, South African Federation of Trade Unions (Saftu) secretary-general, Zwelinzima Vavi said consumers are buckling under the pressure of rising living costs, reacting to the recently released official unemployment rate.
“We’re sitting on a ticking time-tomb,” said Vavi.
Petrol price is expected to increase by a record of R4 per litre on Wednesday. This is viewed to have a ripple effect on the cost of food and transport.
Vavi indicated that he is concerned over a repeat of last year’s July riots.
“It’s going to be almost impossible for middle class workers to use their cars to go to work. This will be followed by more increases on transport costs and food inflation. We’re going to see a crisis of poverty like we’ve never seen in the country before,” said Vavi.
Meanwhile, the Monetary Policy Committee’s decision to increase the repo rate by 50 basis points to 4.75% is expected to add to the high cost of living.
South African consumers are expected to pay far more for their home loans or vehicle finance installments.
“We are in a dire straits. What we saw in July last year can create havoc all over again. People are so hungry and battling. It’s total pandemonium,” said Vavi.
Vavi has also asked during the interview why President Cyril Ramaphosa has not called an emergency national address to give some form of government intervention.
“We want the president to address us tonight to explain how we’re going to be living from tommorow,” said Vavi.
He’s proposed a stimulus package of R3 trillion to delay the reintroduction of the fuel levy, extend the R350 grant, introduce a wealth tax and take steps to prevent the rot of corruption.
CENTRAL NEWS
—————————————————————
DO YOU HAVE A NEWS STORY OR AN OPINION FOR CENTRAL NEWS: E-mail us : newsroom@centralnews.co.za or Whatsapp us on 0833989119