Rising cost of electricity puts much-needed jobs at risk

Employers in the food and hospitality sectors say retaining staff is getting harder.

Cosatu’s denounced the move by Nersa to grant Eskom an 18.65% tariff hike calling it a “callous” decision that deals workers and struggling businesses a devastating blow.

The owner of Schoemansville Butchery, George Gonsalves employs 23 staff, most of whom are young and female.

“As it is, we are spending R3 000 and R5 000 a day on our generator and that’s just going to go up with the price of electricity. My fridges have to run 24/7, they can’t switch off at all. If the generator is not running, the electricity is running and now the power is going up and it’s getting harder and harder. I don’t want to let my staff go; they all have families,” says Gonsalves. 

At the same time, the newly opened eatery Area 51 employs 26 people. Its manager, Rhulani Marivate says governments called on small businesses to create jobs rising costs make it impossible.

“My costs are increasing and for a start-up business like mine, at any time we could have to close shop. The whole staff that is here may have to be laid off and most of them work on tips. How will they get those if there are no people here?” asks Marivate. 

Marivate says over the December holidays they could have up to 200 revellers on site. On a good weekday, they host upwards of 40 patrons. But he says since the implementation of stage 6 power cuts, the numbers have dwindled drastically.

“People come to sit and when the power goes, the generator needs to kick in and everything needs to reset and the whole ambience that was created goes, and patrons leave. Every time load shedding is announced our walk-in customers become less.”

The country’s unemployment currently stands at 33%, among the highest in the world, and with no immediate end in sight for the energy crisis the future is looking bleak.