Trade union federation, Cosatu on Sunday, welcomed the reopening of the economy but cautioned that this will not save jobs unless government injects new money in the ailing economy.
The federation in a statement said it would be a futile exercise to reopening the economy without a stimulus package to boost growth.
Matthew Parks from Cosatu said the lack of an economic stimulus by government amidst depressed private capital investment will continue to plunge and trap the economy into what is becoming a serial stagnation.
“It is tragic that President Ramaphosa’s administration seems to be focused on implementing an economic framework of policies that do not place employment creation as a priority. The government continues to choke the economy with austerity measures, while many of our peer countries are implementing policies that support economic growth,” Parks said.
“The country needs an interventionist state that is ready to play a strategic role in shaping key sectors of the economy, especially the ones hardest hit by the crisis. This calls for an increase in public investment in the economy – in a manner that instills the efficient use of our limited resources,” he added.
Cosatu is also calling the extension of the UIF COVID-19 TERS fund that gives relief to workers.
