Saftu and Cosatu warn about job losses as economy bleeds

MANUFACTURING IN CRISIS

- MANYANE MANYANE [e-mail]

THE South African Federation of Trade Unions (Saftu) and the Congress of South African Trade Unions (Cosatu) have raised concerns about job losses amid a decline in the country’s manufacturing sector.

This was after Statistics South Africa (Stats SA) released data showing that manufacturing production decreased by 0,8% in March compared to the same period last year.

This marked the fifth consecutive month of decline in industrial activity.

The largest negative contributors were petroleum, chemical, rubber and plastic products and electrical machinery.

On a quarterly basis, production fell by 2,3% in the first quarter of 2025 compared to the fourth quarter of 2024. It also decreased by 2,2% on a monthly basis March 2025 compared to February 2025.

Saftu attributed the decline to neo-liberal policies, insufficient investment and an extractive economic structure.

The federation called for policies that prioritise job creation and industrial development.

On the other hand, Cosatu said it was concerned about the loss of jobs.

The union warned that this would be worse as the expanded definition of unemployment, which includes those discouraged from seeking employment, remained unchanged at 41,9%.

Saftu said also this confirms a long-term trend of deindustrialisation.