Fifty more workers were retrenched on Thursday as the new plastic bag regulations continued to take their toll on jobs in the industry.
The spiralling job losses since the introduction of the legislation has prompted the Congress of South African Trade Unions (Cosatu) to ask for an urgent meeting with Minister of Environmental Affairs and Tourism Mohammed Valli Moosa.
Cosatu, which has predicted 4 000 jobs would be lost, has in the past called on the government to scrap the legislation.
Cosatu spokesperson Patrick Craven said this week the federation wanted to meet Moosa “because of the threat of massive job losses in the plastic industry”.
The request comes as major players in the plastic industry begin to retrench staff to cope with the drastic decrease in demand for plastic bags. Demand has fallen since the thicker, re-usable plastic bags were introduced.
“We are seeking a meeting with the minister to find solutions … Thousands of jobs could be lost if this is not resolved soon,” Craven said.
The government has defended the legislation in the past by arguing that there will not only be spin-offs for the environment, but also job creation, as new regulations encourage recycling.
John Louw, spokesperson for the Department of Environmental Affairs and Tourism, said this week his department was happy about the implementation of the legislation but would continue to consult stakeholders. “We are looking at the matter holistically … we are trying to understand the situation.”
Louw said the department wanted to avoid a situation where some employers used the legislation as a scapegoat for retrenchments. His department was keen to meet Cosatu.
The Mail & Guardian’s research this week revealed a grim picture of the plastic bag industry following the introduction of the legislation. Stock is piling up at factories as sales fall.
The demand for plastic bags has dropped by up to 90% for many companies, forcing them to retrench staff and, in some cases, cut salaries.
Johannesburg-based Transpaco employs 350 workers. CEO Phillip Abrahams said about 250 jobs at his company were at risk because of the new legislation.
The company would shut down two of its three factories next week if the situation did not improve, Abrahams said. “The tragedy of this whole thing is that this was not suppose to happen this way.”
Another company hit by the new regulations is JR Plastics, which retrenched 50 workers on Thursday.
“We have experienced a very big drop in the past months. Last month we had a 40% drop in manufacturing. We only worked 12 days last month. These days we are working two days, three days a week,” said Roy Maharaj, a director.