Rising Fuel Costs: Will employers choose flexibility and empathy over layoffs?

Energy Effects

Sizwe Dlamini|Published

April’s fuel price hike is the largest single-month hike in South African history, adding hundreds of rand to commuting costs, and rising instability in the Middle East suggests it may not be the last.

Image: File

AS South African commuters face the steepest fuel price increase in the country’s history, voices from both business and labour are urging caution, collaboration, and compassion in the workplace.

April’s fuel price hike is the largest single-month hike in South African history, adding hundreds of rand to commuting costs, and rising instability in the Middle East suggests it may not be the last. The timing, stakeholders agree, could not be more critical.

“For the majority of South Africans, we are once again experiencing the kind of financial strain last felt during the Covid-19 pandemic, and just like then, it’s reigniting the familiar work-from-home debate,” according to Sasha Knott, chief executive of AI recruitment platform Job Crystal.

Meanwhile, Solidarity, the trade union, acknowledged that the anticipated fuel increase, together with the already sharp rises in diesel prices at certain fuel stations, was placing significant pressure on businesses. However, it cautioned that hasty decisions could exacerbate the situation.

“We understand that the sharp increase in fuel and transport costs is a real and unavoidable reality, placing pressure on businesses worldwide,” according to Gideon du Plessis, General Secretary for Solidarity. “However, this situation must be handled with prudence. Job security cannot be the first casualty every time costs rise unexpectedly.”

Knott argued that the current crisis demanded a pragmatic reassessment of workplace norms. “While South Africa is not heading into another lockdown, the fuel crisis could serve as a defining moment for employers who have been pushing for a full return to the office.

“It’s a clear reminder that flexibility and empathy still matter, and those employers who are willing to adapt, even in small ways, will be remembered and appreciated. The pandemic proved that flexibility is possible. During the lockdown, we saw entire industries shift to remote work almost overnight, but productivity and morale didn’t collapse. In fact, in many cases, they improved.

"While there has been a global push towards in-office work, crises like this force us to take stock of what is actually necessary,” she said.

Importantly, the call for flexibility is not a demand for blanket remote work. Employees understand sectoral realities. “Employees recognise that our economy cannot sustain a blanket work-from-home model, particularly in sectors like manufacturing, agriculture, logistics, and retail. Instead of demanding a full shift to remote work, they are being realistic in expecting the same level of flexibility and understanding shown during the pandemic, especially during low supply and financial strain,” Knott said.

Both Knott and Solidarity proposed practical, fair measures employers can consider to support staff without compromising operations. “Hybrid models, flexible hours, or even allowing remote work a few days a week can make a meaningful difference to employees’ monthly costs and overall wellbeing. Employers who fail to meet their employees halfway risk damaging motivation while also weakening their ability to attract and retain talent,” Knott said.

For employers concerned about output, technology offers solutions. “Concerns around productivity will always be raised when it comes to remote work, but they are increasingly easy to manage with online tools like Microsoft Teams, Zoom, and performance tracking systems. Clear KPIs, regular check-ins, and transparent communication go a long way in ensuring accountability in remote or hybrid setups.”

Solidarity proposed the following fair measures that employers could consider for supporting employees:

  • Avoid hasty retrenchments and explore alternative solutions, such as reducing non-essential workplace luxuries and convenience-related expenses.
  • Review travel and transport allowances where possible. Where employees must cover commuting or fuel costs over longer distances themselves, a review of allowances may help to ease the sudden financial burden.
  • Make use of flexible working arrangements where possible.
  • Allow employees the opportunity to put forward cost-saving suggestions.
  • Communicate openly with employees about financial pressures. Transparent communication helps to prevent uncertainty, rumours and unnecessary panic in the workplace.
  • Approach the current fuel crisis as an exceptional and temporary situation. Decisions affecting employees’ job security must be taken with caution, particularly where international factors play a significant role.
  • Make every effort to prevent a temporary economic crisis from leading to long-term social consequences.

Solidarity warned employers not to turn this temporary economic disruption into a permanent disruption for employees and consumers. The union noted growing concerns among employees about what the latest fuel shock could mean for their jobs, income and financial security.

“Solidarity warns employers against ill-considered responses to fuel prices,” the union stated, cautioning against using the sudden and dramatic rise in fuel prices as a justification for unnecessary retrenchments or other drastic measures that could threaten employees’ job security.

According to Solidarity, employers should first consider all reasonable alternatives before contemplating staff reductions, particularly since international factors largely drive current fuel price pressures and are, moreover, temporary.

Solidarity encouraged members to contact the union immediately if they experienced fuel price increases being used to justify unfair retrenchments, unilateral changes to conditions of employment, or any other actions that threaten their job security, so that the matter can be addressed in good time.

While the government has clarified that remote work is not an official policy yet, reports of long queues and fuel shortages at some pumps were forcing employers to make different or better decisions to help their people cope right now.

Ultimately, both perspectives converge on the need for balance and mutual support. “The bottom line is that to prevent our economy from running on empty, we need our businesses to strike a sustainable balance between their needs and the very real realities of employees. Once cannot be at the expense of the other,” Knott said.

Du Plessis echoed this sentiment: “It is in times like these that employers and employees need one another, rather than standing in opposition to each other. Employees are already seeing diesel prices rise sharply at some filling stations, and the increase on April 1 is further heightening uncertainty.”

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