Q FM Africa's Modern Radio
The Zambia Congress of Trade Unions (ZCTU) has strongly condemned the decision by government to increase fuel prices.
In a statement issued to Q-news, ZCTU Secretary General Cosmas Mukuka says the increase in fuel prices will have a spillover effect on the cost of essential goods and services with prices in transport, electricity, food another essential expected to increase soon.
Mr Mukuka says workers have to pay more to commute to work and back and will soon have to pay more for food and other consumer goods.
He says this means they will have less to spend, causing the demand for consumer goods to drop further, which will in turn lead top job losses.
He states that the workers and the poor are already over-burdened by the introduction of additional taxes, which have impacted negatively on real incomes
Mr. Mukuka adds that productivity will be affected by the increase because the business world will blame the high cost of fuel for reducing production.
He says the ZCTU fears that some companies may resort to retrenchment of workers as a way of cutting down on production costs, thereby worsening the already high levels of unemployment in the country.
Mr Mukuka further states that ZCTU is worried by the high increase in fuel because producers of goods and services will pass on the increase to the consumers.
He has since urged all ZCTU affiliates to start pushing demands in salary increments with employers, in order to cushion members from economic hardships.