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Labour Wrap: Poultry, poverty and desperation

Chicken imports will cause thousands of job losses and highlight how business can chase profit without considering long-term consequences, says Terry Bell in this week's Labour Wrap.

WITHOUT freedom from hunger and poverty there can be no real freedom, says Terry Bell in his latest Labour Wrap. He points out that in this week of both Freedom Day on Wednesday, followed by May Day on Sunday, several factors have come to a head, making this an opportune time to reflect on the relationship between work and freedom.

He notes that without jobs workers, who are also consumers, have no income and therefore cannot buy anything, no matter how cheap. This problem, he adds, is well illustrated by the poultry industry and the approach of government, retailers and importers.

He points out that available statistics reveal that poultry is the major meat protein consumed in South Africa, a country where local producers are both efficient and cost effective. However, at prices that undercut domestic production, 165 000 tonnes of chicken entered South Africa from the European Union last year. And, according to a deal now announced by the government, the United States will be allowed to export 65 000 tonnes of chicken into South Africa every year, duty free.

Although retailers and importers maintain that this encourages competition and benefits consumers, Bell maintains that this is both hypocritical and short-sighted, that the competition is unfair and that the long-term effects are very damaging.

Domestic producers, says Bell, have warned that these US imports alone will result in the loss of thousands of jobs. And the loss of jobs means the loss of pay packets and, therefore, fewer consumers able to buy at whatever the price.

According to Bell, this is an example of the short-sightedness of many businesses that appear to seek to maximise profit in the shortest possible time without consideration of the long-term consequences. And what makes these issues especially pertinent is the report of the statistician general about youth unemployment.

That millions of “desperate, directionless and angry unemployed youth are on the streets" is, he says, both frightening and shocking - an appalling waste of human potential.

* Add your voice to the big labour debate.

- Follow Terry on twitter @telbelsa.

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