COSATU leads an anti-VAT strike

The Congress Of South African Trade Unions (COSATU) called a two-day nation-wide strike to demonstrate their opposition to the government's intention to impose Value Added Tax (VAT) on basic foodstuffs, health care and essential services. The strike attracted 80 per cent workforce support from the manufacturing industry. COSATU and the African National Congress (ANC) issued a concerted statement: A referendum was held in the streets of our country today. The result was a devastating vote of no confidence in this government. The government reacted by declaring the strike unjustifiable; that it would cost an estimated R25, 000 million; and, that it also resulted in the loss of 70,000 jobs.