The Tunisian General Labor Union warned on Tuesday of the impact of hikes in fuel rates and other possible increases in costs of basic living commodities caused by national social tensions triggered by a turbulent political atmosphere and public anger.
The Union said in a statement that current rate hikes and pre-scheduled increases to follow “will only increase the burden on the general public and aggravate the status of economic institutions.”
Other than diminishing purchasing power, price increases will likely favor the already present smuggling system and black market activity, the statement added.
The union’s position comes just days after the government approved a 4 percent increase in gasoline prices, the third this year. More hikes could follow if the price of a barrel of oil continues to rise globally.
The government said that this periodic review is aimed at protecting the country's financial balances and reducing the budget deficit to 4.9 from 6 percent in 2017.
The union also warned that any further pressure would cause a domino-effect and raise prices of basic commodities, including subsidized materials and medicines, as well as social services, such as transport and others, which could threaten to spark new social protests.
Previous negotiations between ruling coalition parties and national organizations, including the Labor Union, have been bogged down by self-determination arguments made by the current government, as well as a general consensus on a new package of reforms and urgent measures to reboot the national economy.
The union supports the idea of abandoning the current government of Prime Minister Youssef Chahed, one year ahead of the 2019 elections, or opting for a sweeping reshuffle of ministers.
Tunisia achieved a growth rate of 5.2 percent in the first quarter of 2018, a first since 2016.
