Cosatu calls for additional R1-trillion stimulus package to save jobs

The Congress of South African Trade Unions (Cosatu) has asked for an additional R1 trillion stimulus package for the country to address job losses, avoid economic depression and fight Covid-19.

It said Finance Minister Tito Mboweni “must now table a new, reprioritised and bold budget” if the country is to survive the virus and avoid an economic depression and raging unemployment. The February budget had been rendered irrelevant by the Covid-19 pandemic.

Cosatu parliamentary coordinator Matthew Parks said: “The president’s previous announcement of R500 billion worth of economic relief was welcomed. It must now be accompanied by a bold R1 trillion-plus stimulus plan if we are to save jobs and the economy.”

In a submission to the parliamentary appropriations standing committee in Cape Town, Cosatu said the stimulus funding for companies must be conditional upon job retention and incentivised for job creation.

“Essential economic infrastructure must be prioritised for investments, especially ports, rail, energy, water, health and education,” Parks said.

On outstanding wage increase agreement – an issue that seemed to separate the government and public sector unions – the federation said the government must honour the 2020 public service wage agreement. It said the government must properly pay the essential services workers who were risking their lives in the fight against Covid-19.

“The existing appropriations to departments must be overhauled,” Parks said.

Funds must be released for priority interventions in the departments of basic education, employment and labour, trade and industry and competition, health, transport, social development, human settlements and water and sanitation, among others.

“These are the key departments that must be properly funded to ensure that workers, pupils, commuters, and their families can travel, study, and work without risking their lives.”

The federation’s call came just weeks prior to the tabling of the special adjustment budget by Mboweni in response to the Covid-19 and its impact on the population and economy.

The unprecedented budget change is meant to address the economic impact of the virus and to make massive additions to health spending directed at fighting its spread.

“Additional sources of funding from within the fiscus, new tax revenue and the private sector must be found. Our investment drive must be anchored to domestic investment sources. The financial sector must now come to the party. Our economic recovery must be linked to local procurement,” Parks said.

“A culture of leadership and accountability must be rebuilt in these departments. The days of wasteful expenditure and rampant corruption must come to an end. Those ministers, premiers, MECs and HODs who cannot let go of their thirst for looting must be made guests of the correctional services centres.”

Cosatu said the 2020/21 budget lacked a stimulus plan and accused the government of having put the war against corruption on hold.

The union said government must address the wasteful public expenditure and must hold departments accountable for this. The federation objected to the government’s alleged obsession with the wage bill.

In his 2020/21 budget in February, Mboweni proposed the cutting of the wage bill, but Parks disagreed with what he termed a “dangerous fixation with an otherwise stable public wage bill”.

– ericn@citizen.co.za

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