Families buying for festive season face spending more by 50% than last year because of increased prime rates.

Outstandingly higher wage increases and better conditions of employment negotiated this year for metalworkers predominantly in the manufacturing industries saw Reserve Bank Monetary Policy Committee grind down those gains.

National Union of Metalworkers of South Africa (Numsa) central committee at the weekend has expressed intense anger at the Reserve Bank Governor Tito Mboweni’s decision to raise the base lending rates at 50 points, saying it is ill-timed.

The onslaught on workers’ victories in collective bargaining this year through raising interest rates is likely to cause untold miseries and wretchedness. With further increases on loan repayments, home bonds, food and price of fuel compounded by inability of small entrepreneurs borrowing capital and more job opportunities threatened by lack of investments will result in some going out of business and further job destruction.

Numsa believes, tackling the crisis of poverty, joblessness will remain such a huge problem for years to come that other Government initiatives launched to create new job opportunities and improve economic growth at the same time will continue to sputter like a damp squib.

For further information contact:

Mziwakhe Hlangani, Numsa national spokesperson

Cell phone: 082 9407116

E-mail : mziwakheh@numsa.org.za

Sources

Numsa Press Releases