FAWU AND DTI AGREE ON WORKSHOP TO THRASH OUT TARIFF
ISSUES
Issued by Nedlac
27 November 2001
At a meeting at Nedlac yesterday, the Department of Trade and
Industry and the Food and Allied Workers Union (Fawu) agreed to
hold a workshop in February next year to discuss the impact that
the importation of foodstuffs from the European Union into South
Africa is having on the local industry. Fawu has tabled a notice of
possible protest action at Nedlac, directed at the Government,
retail stores Pick 'n Pay, Shoprite and Woolworths, and all local
food manufacturers that import ingredients from EU countries.
The retailers agreed to be part of the workshop if Fawu submits
all the information it has, specific to each retailer, to
substantiate the accuracy of its allegations that they are the
biggest importers of food and stock. Fawu undertook to provide the
information it has at its disposal by the second week of January
2001.
The parties undertook to provide a report back to Nedlac after
the workshop is held. The Nedlac standing committee agreed to the
process. The workshop would form part of the consideration period
of the notice as specified in Section 77 1(c) of the LRA and any
protest action would be in abeyance until this process had been
completed.
Background
In the notice, Fawu points out that the trade agreement between
the EU and South Africa opens South African markets to EU
countries. If further points out that products within the food
industry in the EU enjoy subsidisation by EU countries. This means
that EU countries are able to produce foodstuffs at lower costs,
and in turn, are able to sell their products at cheaper prices.
Fawu argues that since South Africa has lowered tariffs for
foodstuffs into the country, there are no tariffs to compensate for
the advantaging effects of the subsidies.
Fawu argues that because local industries are not able to
compete with foreign products, this leads to a decrease in
profitability, which eventually leads to job losses within the
industry. Sectors which are particularly affected include the
canned beans industry and the dairy industry, argues Fawu.
Fawu's notice specifies a number of demands, including that the
government increase tariffs in sectors that are subsidised in
foreign countries (mainly dairy, flour, milling, baking and poultry
sectors), or that local ingredients be subsidised if the same
imported ingredients are subsidised.
The notice was tabled in terms of Section 77 of the Labour
Relations Act, which allows registered trade unions or federations
of trade unions to undertake protest action to promote and protect
the social and economic interests of workers, if they follow
certain procedures. Before embarking on protest action, the trade
union concerned is required to serve notice on Nedlac stating the
reasons for the protest action and the intended nature of the
protest action. The Act requires the Nedlac parties to meet with
the trade union and the parties at whom the notice is directed, to
consider the issues raised. Should the issues remain unresolved
after thorough consideration, workers are entitled to participate
in protected protest action 14 days after serving a second notice
on Nedlac of their intention to proceed with the action.
Fawu has indicated that its proposed protest action would take
the form of a one-day strike in the industry and in-store protest
action within the retail stories mentioned.
Jennifer Wilson
Communications Coordinator
Nedlac
(011) 482-2511
fax: 482 4650
083 652 8524 (note new number)