Concerns over workers spending more than 57 percent of salaries on transport & electricity

Concerns over workers spending more than 57 percent of salaries on transport & electricity! The General Industries Workers Union of South Africa (Giwusa) has expressed deep concern over the latest Household Affordability Index report, which paints a bleak picture of the financial struggles faced by South African workers. The report reveals that the average worker spends more than 57% of their monthly earnings on transport and electricity, leaving very little for food and other basic needs.

This shocking statistic underscores the worsening cost-of-living crisis, which continues to disproportionately impact working-class communities. Giwusa has criticized the government for failing to address this crisis, blaming neoliberal economic policies for exacerbating the problem.

A Growing Crisis Under the Government of National Unity (GNU)

Giwusa argues that despite promises of economic reform under President Cyril Ramaphosa’s administration, the situation has only worsened. The union highlights that the crisis has persisted from the so-called “New Dawn” era under Ramaphosa and continues unabated during the Government of National Unity (GNU).

“This crisis is a damning indictment of the current President and his administration. It graphically reveals the bankruptcy of the neoliberal policies he has doubled down on,” Giwusa stated.

The union warns that the privatization of public services, a key aspect of Ramaphosa’s economic agenda, will only serve to intensify financial hardships for the working class.

“Not only are the plans in his State of the Nation Address (Sona) doomed to fail in curbing the cost-of-living crisis, but his sweeping privatisation of the remaining public services is bound to exacerbate it.”

The Cost of Survival: Breaking Down the Numbers

According to the Household Affordability Index, the average cost of a basic nutritional food basket for a family of four in January 2025 was R3,830.05. However, due to the burden of transport and electricity costs, many workers find it impossible to afford even this minimal expense.

The report reveals that:

• Electricity and transport account for 57.7% of a worker’s wage, totaling R2,802.97 out of an average monthly salary of R4,854.08.
• After covering transport and electricity, workers are left with only R2,051.11 for food and all other necessities.
• The National Minimum Wage (NMW) for January 2025 stands at R4,854.08, meaning a worker supporting a family of four can only allocate R1,213.52 per person per month—well below the upper-bound poverty line of R1,634 per person.

The National Minimum Wage: Institutionalizing Poverty

Giwusa has strongly condemned the current wage policies, arguing that the National Minimum Wage (NMW) is a poverty wage that traps millions of South Africans in perpetual financial distress.

“The NMW is a poverty wage—it hurts workers, reduces productivity in the workplace, and slows down economic growth.”

The union argues that the small annual wage increases fail to keep up with inflation and rising living costs, which means that workers are getting poorer each year.

“Set at such a low level, the NMW institutionalises a low-baseline wage regime, ensuring that millions of workers remain in poverty.”

Giwusa insists that any increment in wages must be calculated based on real inflation levels, taking into account the actual cost of transport, food, and essential services.

Call for Government Intervention

Giwusa’s president, Mametlwe Sebei, has called on the government to take immediate action to address the crisis. He believes that only radical economic reforms can prevent millions of South Africans from falling deeper into poverty.

“We demand that the government take immediate action to address the cost-of-living crisis and ensure that workers can afford a decent standard of living.”

Sebei also criticized the South African Reserve Bank’s (SARB) monetary policies, arguing that they fuel economic inequality by prioritizing the interests of banks and the elite.

“The SARB’s neoliberal policies have stripped working-class people of their meagre assets—homes, vehicles, and savings—while enabling the massive transfer of wealth to banks and the top 1% of earners who own 95% of corporate shares and bonds.”

He warned that the continued prioritization of austerity measures and inflation-targeting policies will further impoverish the working class, forcing them to sacrifice food and other essentials just to afford transport and electricity.

The Human Cost of Economic Hardship

Giwusa has described the current economic situation as “unacceptable”, arguing that it is a direct result of government inaction on key issues such as rising fuel prices, escalating electricity costs, and unaffordable food prices.

“The fact that workers are forced to allocate such a large portion of their income towards transport and electricity while compromising on food and other essential expenses is unacceptable.”

The union insists that without urgent intervention, millions of South Africans will continue to struggle to meet their basic needs, which will have severe long-term consequences for the economy.

Conclusion

The findings of the Household Affordability Index paint a disturbing picture of economic inequality in South Africa. With more than half of a worker’s income going towards transport and electricity, the cost-of-living crisis is worsening under the current administration.

Giwusa’s strong condemnation of neoliberal policies and its urgent demands for wage reforms reflect the growing frustration of millions of workers who can no longer afford basic necessities.

Unless the government implements meaningful economic interventions, South Africa’s working class will continue to bear the brunt of rising costs, leading to greater inequality and social unrest.