ESCALATION IN STRIKE ACTIVITY IS FURTHER HARMING VULNERABLE ECONOMY
While The South African Chamber of Commerce and Industry (SACCI) regularly voiced its concerns about the ongoing strike activity in South Africa since 2012, the recent escalation in labour protest activity is untenable. The impact of the strike activity will not only be borne by investors and business but by the substantial number of dependents of striking workers.
SACCI remains concerned that the broad base of protest activity in key economic sectors threatens to paralyse the economy and will certainly have adverse consequences for global perceptions of the South African economy, its competitiveness, as well as for employment prospects. A recent SACCI survey encompassing more than 830 employees showed that there is a clear correlation between unionisation levels and the frequency of strikes.
Businesses with zero unionisation levels had a 55.6% probability of not experiencing a single strike in the past three years and a 22.2% chance of one strike occurring. Firms with near-universal unionisation levels have a 66.7% chance that there was a strike each year for the past three years. The impact of the strikes on business included a temporary reduction in output or services to clients (62.5%) followed by 31.3% who experienced a permanent increase in the cost of doing business.
SACCI hopes that the current protest activity will be characterized by discipline, as is required by law, and not by the destruction of property or intimidation of other workers. SACCI will continue to engage with social partners in order to find a way to prevent similar disruptive activity by way of creative and practical policy.
At its Annual Convention in 2012, SACCI engaged with political leaders on all aspects of job creation including the prevalence of labour protest activity. At its 2013 Annual Convention on 9 and 10 October, domestic labour market challenges will continue to feature on the SACCI agenda in the context of South Africa's competitiveness on the continent (see wws.sacci.org.za/convention/).
Statement issued by CEO of SACCI, Mr. Neren Rau, August 26 2013
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