AfricaNews - SA: Workers strike over 24% power hike

SA: Workers strike over 24% power hike

Posted on Friday 26 February 2010 - 08:00
Sanday
Sanday Chongo Kabange, AfricaNews reporter in Lusaka, Zambia
South African trade unions are threatening strikes after the country's government allowed state-owned power firm Eskom to raise prices by 24.8%. Both consumers and businesses will struggle with significantly higher electricity bills, the unions argue. They said the cost were a "double whammy".
The Johannesburg Chamber of Commerce and Industry said firms were already struggling to cope with the fallout of recession and slow economic recovery.

Chamber president, Mark Nowitz, said, "In this climate, with the economy where it is, obviously it has a huge impact, it is not good for recovery".

Patrick Craven from the Congress of South African Trade Unions (COSATU) said he was worried that extra costs from higher electricity prices would deter firms from taking on more staff.

"Many businesses, which are struggling to survive, will not be able to afford such a massive increase. Jobs could be lost, fewer new jobs will be created and many firms may even be forced to close down," he said, according to BBC.

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