COSATU supports auto workers' strike
The Congress of South African Trade Unions pledges its full support for the 30 000 workers in the Auto sector who went on strike today, Monday 19th August 2013.
Elias Kubeka, National Motor Sector Coordinator for the National Union of Metalworkers of South Africa (NUMSA), reports that the strike is "very well supported and all of the factories, 100%, are shut down".
The workers are demanding a wage increase amounting to 14%, a reduction from their initial demand for 20%. But the employers - including giant multination firms including Toyota, Ford, BMW, General Motors and Nissan - are only prepared to offer 6%, an increase which does no more than make up for what they have lost through inflation, which is currently estimated in the Consumer Price Index at 5.9%.
This index does not however reflect the impact that inflation has on the poor, who spend the bulk of their income on food, transport and energy - all of which have seen inflation levels substantially higher than this figure.
This is a huge industry, which contributes at least 6% to the country's GDP and 12% of its total exports, all based on making big profits from the cheap labour of its workers. Wages in the sector range from about R8500 a month for basic workers to R18 000 a month for qualified technicians. Compare that to the United States, where, according to the U.S. Bureau of Labor Statistics, the annual wage in 2012 in vehicle manufacturing is close to R45 000 a month, more than five times as much as the basic wage in SA.
A recent article in the Mail&Guardian (14 June 2013) by Niall Reddy, a researcher at the Alternative Information and Development Centre, reflects on "the predictable media onslaught against ‘irresponsible', ‘above inflation' demands", which will undoubtedly be wheeled out against the car workers.
He rubbishes "the view that high wages are bolstering a ‘labour aristocracy' at the expense of jobs for the rest", which "has become an article of faith in economic journalism but whose pervasiveness is better explained by the depth of media bias than by any scientific merit."
In reality, he demonstrates, "Inequality has ballooned, but... it's the top decile who have seen their fortunes radically diverge from the rest... Most workers experienced virtually no improvement in wages during the period 1997 to 2011. The median real wage for a formal sector worker in 2011 was R3 800 (in 2011 prices) - the same as it was in 1997.
"The data shows that the 22.7% increase in the formal sector average wage during the past 15 years was entirely due to increases for the top earners, which is confirmed by many firm-level studies that show South Africa's putative ‘high wage' distortion to be largely due to bloated salaries for managerial staff. Moreover, highly skilled workers were the only category to make substantial wage gains - evidence, some suggest, of a premium paid out due to the skills crisis...
"Labour's share of private sector gross domestic profit (GDP), even when managerial wages are included, has shrunk from about 49% just before apartheid to about 42% today."
COSATU warmly welcomes the message of from the National Union of Mineworkers, which "supports the wage struggles waged by its ally, the National Union of Metalworkers of South Africa (NUMSA) in the car manufacturing sector.
"The NUM fully supports these demands for a living wage which are in line with the COSATU's campaigns for a living wage. The NUM calls on the car manufacturing oligarchy to accede to the noble demands of the metalworkers. The NUM wishes the metalworkers strength as they approach the car manufacturing oligarchy and assures them of unwavering support."
This is a fine example of the federation's slogan - "An injury to one is an injury to all!" We are sure every other union will follow the NUM's lead and pledge their solidarity with the auto workers".
Statement issued by Patrick Craven, COSATU national spokesperson, August 19 2013
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