The Food and Allied Workers Union (Fawu) yesterday slated the decision by Trade, Industry and Competition Minister Ebrahim Patel to suspend to suspend poultry anti-dumping duties for 12 months, saying this would kill jobs and sector.
It also called for an urgent meeting with the minister.
The department of trade, industry and competition (DTIC) on Monday granted a reprieve to Brazil, Denmark, Ireland, Poland and Spain by suspending the implementation of anti-dumping duties against them.
It did so to grant relief to South African consumers who are battling with the high cost of living including soaring food prices.
Local poultry producers this week threatened to hold back investment in the sector for the duration of the withholding of tariffs.
In a statement, South African Poultry Association (Sapa) General Manager Izaak Breitenbach said the industry felt betrayed by Patel for the decision which went against the spirit of the poultry Masterplan to limit imports and allow for the growth of the local industry.
On Friday, Fawu said it was against this decision because in the long run this would collapse the entire poultry industry.
“This, therefore, gives an open space for other countries to take over the South African market which will lead to the collapse of the poultry sector. We therefore dispute the actions of the minister as it ultimately destroys jobs in the poultry sector, which is practically the opposite of this recommendation by Itac (International Trade Administration Commission),” it said.
Itac had found prima facie evidence of dumping into the Southern African Customs Union (Sacu) market, causing material injury to the industry.
Fawu has argued against a 30 to 35 percent share of foreign chickens as a result of poultry dumping as far back in 2016.
It said this led to imported chicken portions taking a large percentage of the South African market at much cheaper price than the local poultry.
“Consumers will obviously buy cheaper chicken portions because local consumers are price sensitive and it is not the fault of consumers to be price sensitive, more so that the salary scale of workers in South Africa is low, but it is the fault of practices of unfair trade where chickens are dumped in the country, ” Fawu said.
It added that there would then be less chicken sold from local supply, leading to workers being retrenched in a sector that had already lost more than 2 000 jobs from previous chicken dumping.
“There will then be closure of small-scale farms and small business that supply farms as they cannot continue participating in the value chain. It is even worse for the informal economy as most poor communities survive through selling chickens on the streets,” Fawu said.
The union said with unemployment already at a record high, it could not allow this unfair trade which put the jobs of more workers in South Africa at risk, threatening their livelihoods, their families and even their communities.
“The DTIC minister is well aware that the absence of anti-dumping duties leads to the opposite of this mandate as it leads to job losses through imports taking advantage with influx of chicken potions that increase more than the locally supplied chicken in the market,” it said.
Fawu noted that 1 640 jobs had been created through the poultry industry masterplan.
“The DTIC cannot reverse all the revolutionary strides against the European Union countries to make sure that the poultry industry is protected, jobs are secured including our economy. Meanwhile Fawu leadership shall be inviting the minister for an urgent meeting, we therefore demand that the minister must follow the recommendations of Itac and impose definitive anti-dumping duties,” the union said.
Earlier this week, Sapa said the industry was considering all remedies open to it, but no firm decision on the way forward had been made, except to say that the industry would actively engage with Patel on the issue.
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