South African Workers Struggling to Afford Basics as Cost of Living Crisis Deepens

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South African Workers Struggling to Afford Basics as Cost of Living Crisis Deepens
LaborSouth AfricaCost Of Living Crisis
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The latest Household Affordability Index report reveals a stark reality for South African workers, who are spending over 57% of their monthly earnings on transport and electricity. This leaves them struggling to afford basic necessities such as food. The General Industries Workers Union of South Africa (Giwusa) has criticized the government for failing to address the cost-of-living crisis and called for an end to neoliberal policies.

The General Industries Workers Union of South Africa (Giwusa) has expressed grave concerns over the findings of the latest Household Affordability Index report, which reveals a stark reality: the average South Africa n worker spends over 57% of their monthly earnings on transport and electricity. The union argues that these alarming figures underscore the persistent and debilitating cost-of-living crisis faced by its members and the broader working class.

Giwusa president Mametlwe Sebei stated that the report serves as a powerful reminder of the daily struggles endured by working-class South Africans. The report paints a grim picture, showing that the average cost of a basic food basket for a family of four stands at R3,830,05 for January 2025. A staggering 57.7% of a worker's wage, or R2,802,97 out of R4,854,08, is consumed by electricity and transport expenses. This leaves a mere R2,051,11 for food and other essential needs. The union criticizes the National Minimum Wage (NMW), calling it a poverty wage that fails to keep pace with the rising cost of living. The maximum wage of R4,854,08, when distributed among a family of four, amounts to R1,213,52 per person per month, a sum that falls below the upper-bound poverty line of R1,634 per capita per month.Giwusa argues that the NMW, coupled with minimal annual increases that do not adequately reflect inflation, enshrines a low-wage system and traps millions of workers in poverty. The union demands that the government take swift and decisive action to alleviate the cost-of-living crisis and ensure that workers can live with dignity. They call for an end to neoliberal policies and austerity measures, including the South African Reserve Bank's (SARB) inflation-targeting policies, which they believe have further impoverished the working class. Sebei asserts that the SARB's monetary policies, driven by neoliberal ideals, have stripped workers of their assets, facilitated wealth transfer to banks and the elite, and exacerbated the cost-of-living crisis. The union views the situation as a direct consequence of the government's failure to address the escalating prices of electricity, transport, and food, forcing workers to make impossible choices between basic necessities

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