S.A. business and labour groups criticise price freezes in Zimbabwe

By Tererai Karimakwenda
July 13, 2007

The deepening crisis in Zimbabwe has raised fear in South Africa, where the umbrella labour and business unions expressed deep concern for the people of Zimbabwe and the threat posed to South African businesses. The Congress of South African Trade Unions (COSATU) and the Business Unity South Africa (BUSA) released separate statements this week expressing concern for South African owned companies in the country and struggling Zimbabweans dealing with shortages. Both confirmed their support for the mediation efforts being led by their president Thabo Mbeki, and urged him to ensure a speedy solution to the deteriorating economic crisis.

Business Unity Chief Executive Jerry Vilakazi said the group hoped Zimbabwe would reach a mediated settlement and urged Mbeki to ensure that dialogue between the ruling party and opposition continues. Referring to the Zimbabwe government’s ongoing campaign of forcing businesses to reduce prices, Vilakazi said: “We understand that inflation has skyrocketed in the last few months but we do not believe the solution lies in cutting prices arbitrarily.” The statement from the business group said they will be sending a high level delegation to consult their members in Zimbabwe.

Meanwhile the labour union COSATU said it was particularly concerned that the worst victims of Zimbabwe’s deepening crisis were the poor workers, and not the ruling elite. Reports quote Union officials as saying: “The worst victims are not the ruling elite and their friends, but the ordinary people of Zimbabwe, the workers and the poor in particular, for whom this is a human and socio-economic disaster. More and more are now living in abject poverty.”
COSATU has supported workers in Zimbabwe over the last few years as unemployment and prices skyrocketed. The group has consistently criticised the Mugabe regime’s human rights record and has sent delegations to Zimbabwe that were deported by force.
COSATU also said they are concerned about the secrecy surrounding the talks being mediated by Mbeki. They urged the South African leader to include civic society in the dialogue.