South Africa: Living Costs Crush Workers As Unions Fight for Survival

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Factory workers in Maseru, Lesotho (file photo).

By Dylan Bettencourt

Cosatu says electricity prices shot up by 68% over five years, forcing working-class households deep into debt this Workers' Day.

The government cut petrol taxes to lower travel costs, but unions want quick action to save jobs and fix services.

Workers are drowning in debt as the cost of living shoots up. Trade unions marked Workers' Day on Friday by warning that salaries can no longer cover basic needs.

Zanele Sabela from the Congress of South African Trade Unions (Cosatu) said the price of electricity has jumped by 68% over the last five years. Water costs 50% more and food prices are up by 45%.

Education and healthcare are also eating into workers' pay. Primary school fees went up by 37% and secondary schools by 42%. Government Employees Medical Scheme payments increased by 23.2% over two years.

"Working-class households are spiralling deeper into debt as they try to make ends meet," Sabela said, BusinessDay reported.

She said one salary often feeds up to seven people.

Fuel prices are making things worse. In April, petrol went up by R3.06 a litre and diesel by R7.51. Poor workers already spend 40% of their money on transport.

The government has stepped in to help. The National Treasury will keep a tax cut on petrol until July. This will cost the state R17.2-billion, but Cosatu warns that households using paraffin still pay up to R28 a litre.

Other unions are also fighting for survival. Narius Moloto from the National Council of Trade Unions said fuel price hikes are driving up the cost of food.

The South African Federation of Trade Unions (Saftu) wants the government to stop job losses. The country's unemployment rate sits at 41.1%.

Saftu spokesperson Newton Masuku said the state must protect worker rights instead of changing labour laws.

The Federation of Unions of South Africa said workers are tired. The union said expensive electricity is forcing businesses to cut jobs. They want the government to protect workers from being pushed into informal jobs.

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