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FAWU Press Statement, 14th October 2013 SASA Tariff Application to ITAC The South African Sugar Association (SASA) is applying to the International Trade Administration Commission of South Africa (ITAC) for higher tariffs to be imposed on imported sugar The Food and Allied Workers Union (FAWU), representing about 3 000 of the 5 800 sugar milling and refining workers and few thousands of estimated 64 000 sugar cane planting and cane cutting (harvesting) workers, will be making submission to ITAC on why the tariff hike on sugar and related products is necessary to protect our sugar industry. This submission is in opposition to the one by yet another 'middle-man'-type association, called Association of Southern African Sugar Importers (ASASI), in the sugar sector which calls for tariffs to remain low, a similar call made by their Siamese twin in the poultry sector called Association of Meat Importers and Exporters (AMIE) in the poultry sector. FAWU, in line with its resolutions and policy outlook, will be insisting that tariffs are necessary to protect our country's manufacturing base and promote its industrialization, as part of job-creating industrial strategy and poverty-eradicating development plan, to achieve jobs retention and creation as well as meeting the country's food security. Protecting manufacturing jobs in the industry, through anti-dumping duties or tariff hike or other mechanisms, and defending the sugar sector from 'de-industrialization' are fundamental to FAWU as it should be for our government in the light of high unemployment and poverty as well as rising inequality. If nothing is done on protection of sugar sector, about 40 000 of the about 77 000 jobs will be lost in the value-chain. We do note concerns, raised by (ASASI), on possible rise of sugar prices following tariff hike or other protection steps and hope that those prices should not rise astronomically and a balance with consumer benefits will be struck by the producers, processors like millers and refiners as well as sugar-based manufacturers and retailers. We wish to hasten to add that should the retail prices rise by more than 15% then we, as FAWU, would not hesitate to call on the Minister to review the new dispensation of protection although we would urge that before such is done the retailers, especially in the light of the notorious Whitey Basson and Christo Wiese of Shoprite-fame, are investigated on possible excessive pricing or price subsidy (i.e. increase of price-inelastic necessities in cross-subsidization of price-sensitive 'luxuries') in their retail shelves. Hence we repeat our call, that in addition to the role of competition authorities, our government must not hesitate to engineer food price controls or establish the Food Prices Regulator as it is with electricity and fuel/oil. While there may be job losses in the import handling, storage and packing of imported sugar, this is outweighed by benefits of retention and growth of manufacturing jobs in the domestic sugar sector and the entire value-chain. If anything, the possible loss of 40 000 jobs in the sugar value-chain should there be no increase in tariffs is more important to a possible consumer price increase of few percentages, which should not increase to more than 15% as envisaged by FAWU and the 44% as guesstimated by ASASI will mean FAWU calling for a review of the new dispensation and for competition authorities to investigate some wrong-doing. Chris Engelbrecht, the Chairmen of ASASI, must be informed that tens of thousands manufacturing jobs in the downstream like restaurants and fast-food outlets and retail chain-stores and those agricultural jobs in the upstream like hatchery and chicken growing are very critical than those hundreds of chicken import sorting and packaging jobs. Katishi Masemola General Secretary For more information kindly contact General Secretary Katishi Masemola, at 082 467 2509 -- -- You are subscribed. This footer can help you. Please POST your comments to [email protected] or reply to this message. You can visit the group WEB SITE at http://groups.google.com/group/yclsa-eom-forum for different delivery options, pages, files and membership. To UNSUBSCRIBE, please email [email protected] . You don't have to put anything in the "Subject:" field. You don't have to put anything in the message part. All you have to do is to send an e-mail to this address (repeat): [email protected] . --- You received this message because you are subscribed to the Google Groups "YCLSA Discussion Forum" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/groups/opt_out.
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