Steel protest killing industry softly

SINCE 200 000 employees nationwide in the steel and engineering industry downed tools on 2 July, Richards Bay has seen some businesses close their doors permanently and others suffer immense financial pressure.

While workers have been demanding 12 to15% wage increases on the streets of Alton, many business owners have voiced their concern that the strike by the National Union of Metalworkers of SA (Numsa) members is instead killing employment opportunities and sapping the economy.

Thus far, the disruptions have cost the South African economy R300-million a day, according to the South African Chamber of Commerce and Industry (SACCI).

‘The country cannot afford this,’ said prominent local businessman Frans van der Walt.

‘If we are serious about creating wealth, we must stop malicious strikes from crippling our economy.

‘Expectations from labour are unrealistic, bearing in mind that there is so much unemployment and so many people desperate for jobs.

‘These strikes have chased away numerous foreign investments, which is directly affecting future work opportunities for the private sector.’

One Bay business owner said his company is already 10-15% down on turnover.

‘Many of our customers have closed their companies down until the strike ends, which has of course had an impact on other businesses and their employees.’

According to another local industry representative, Zululand’s honest breadwinners need to be educated about the grave consequences of industrial action.

‘Sadly, many workers don’t realise the severe repercussions of these strikes – thinking that they’ll always have a job to go back to.

‘People need to be educated on what strikes do to our economy and how they will lose their wages, and possibly their jobs, while lining the pockets of union officials.’

On Tuesday, the Steel and Engineering Industries Federation of South Africa (Seifsa) reluctantly accepted the government’s proposal to increase wages by up to 10% with hopes to finally resolve the three-week dispute.

This protest came almost immediately after a five-month strike by platinum miners causing ratings agency Standard and Poor’s to cut the country’s credit rating last month.