SACCI COMMENTS ON PLANNED MASS ACTION BY COSATU 07 - MARCH 2012

SACCI views the mass action planned by the trade union federation COSATU, on Wednesday, as potentially damaging to the South African economy. The impact could vary considerably depending on the extent of the protest activity and the duration, ranging from simply depriving the economy of labour to more serious impacts on economic infrastructure.

On a global scale South Africa has one of the highest levels of protest action and is on the watch lists of ratings agencies for a sovereign downgrade. SACCI warns that extensive mass action as planned by COSATU could trigger a downgrade.

 SACCI believes that the protest action against the Gauteng toll fees is unconstructive and counterproductive. By lowering the tax income through reduced economic activity the probability that alternative solutions of funding the Gauteng Freeway Improvement Project through fiscal means is diminished.

What is needed is dialogue between the social partners on alternative funding options. SACCI believes that a more appropriate way to deal with the union's concerns relating to both the proposed toll fees and to labour brokering is through robust debate and sober political dialogue.

On labour brokering, SACCI would have expected a compromise to be reached in NEDLAC where the issue is under negotiation and where COSATU is a key constituent. SACCI is concerned that protest action by COSATU under these circumstances constitutes a motion of no confidence in the NEDLAC process.

As a committed social partner, SACCI believes that solutions that will be to the benefit of South Africa can be achieved through dialogue and cooperation. SACCI therefore appeals to COSATU to use the alternative avenues of engagement available thereby signaling a vote of confidence in the social dialogue process.

Statement issued by Mr Neren Rau, CEO of SACCI, March 6 2012

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