Johannesburg - The National Union of Mineworkers (Num), South Africa's largest trade union, didn't mince its words ahead of the 70 000-strong strike which could seriously derail the country's readiness for the 2010 Fifa World Cup.
"At the end of the day, they [the construction companies] will pay for all the dilly-dallying they've been doing," said Lesiba Seshoka, Num's head of media and communications. He was speaking on CNBCAfrica, a day-time business television programme.
Seshoka said the 32% power tariff hike that government-owned Eskom succeeded in having approved in June was a key reason why labour deserved the 13% wage bill increase asked by Num and other unions representing construction industry labour.
News of the strike is likely to create global reverberations amid general scepticism that Africa is able to host 2010's soccer showpiece, notwithstanding the relatively successful Confederations Cup staged in South Africa in June.
Seshoka offered a modicum of hope, however, claiming labour was not interested in undermining the Fifa World Cup. "We're not deliberately sabotaging the world cup, we are just exercising our democratic rights."
Five of a total 10 stadia that will be used in the tournament are already operational, but the rest are still under construction. This includes the four stadiums being constructed in Durban, Cape Town, Nelspruit and Polokwane, as well as the upgrades to the Johannesburg-based Soccer City stadium.
"At this stage we are working with the 10 stadia, but we respect the construction workers' right to strike," South Africa Local Organising Committee (LOC) spokesperson Jermaine Craig told Fin24.com. "We hope it gets resolved."
The LOC was happy with the stadium construction progress, and was "confident" they would be completed by the end of 2009, Craig said.
On an interview on Radio 702's World at Six programme, analyst and director of Ingham Analytics Mark Ingham could not underplay the strike.
"Bear in mind that a construction industry month is longer than a typical office month of 160 [hours]; we are looking at well over 200 hours - this is not a nine-to-five job. So, if this is a prolonged strike that goes on for weeks on end then yes, we have real concerns," said Ingham.
The construction industry has already been plagued by other factors in the last few months, such as the rainfalls in summer and four public holidays - one for election purposes - in April. "April was an absolute washout as far as holidays went."
Gary van Staden, a political analyst for Noah Financial Innovation, said: "I think if the strike goes on for a significant time, you will absolutely see government intervention, but for the time being it (government) will sit on the sidelines for a bit."
He also said: "The spin-off from these strikes could see opposition parties accusing the government of messing around."
We won't stand down
In addition, the recent trading updates of major construction firms like Murray & Roberts and Aveng, as well as First National Bank's construction confidence index, show that the days of higher earnings for construction companies could be over.
"Hopefully sanity will prevail. And if tools are downed for a limited period of time, I have no doubt that the industry will pick up lost ground," said Ingham.
However, comments from Bhekani Ngcobo, Num's negotiator at the South African Federation of Civil Engineering Contractors (Safcec), show that unions won't stand down. "Employers must expect no mercy from us - they must deliver 13% or we will strike until 2011."
He told Fin24.com on Tuesday that nothing further has been heard from Safcec on Tuesday, "so the strike will be happening tomorrow".
Both the Building Construction and Allied Workers Union (BCAWU) and Num had served notice for strike action after asking for a 13% wage increase and only being offered 10%. The union also wants training and development programmes for workers and a retirement fund set up in the industry.
According to Safcec spokesperson Joe Campanella on The World at Six, the industry had already received an increase of 8% in September 2008, and a further 3% in November. "So they really had [an] 11% [increase] last year, and we're offering them 10.4% now."
He explained that on top of this, the unions had a "package of demands on the table" on non-wage items like minimum wages and pension or provident funds. This would add a further increase of about 50% on top of the 13% requested.
The following projects will be affected by the industrial action:
- KwaZulu-Natal:
Moses Mabhida stadium;
King Shaka International Airport;
Durban harbour project;
Van Reneen project;
Ingula power station;
Inanda arterial project;
WBHO Ballito project; and
Richards Bay harbour;
- Highveld:
Kusile project;
GGV project;
Klipspruit project;
Mafube project; and
DMO project.
- Rustenburg:
Medupi project.
- Eastern Cape:
Coega project;
Nelson Mandela stadium;
Kempston Road;
Livingston Hospital;
N2 bridge;
Old Harbour (docks);
Govan Mbeki project; and
Umtata stadium.
- Gauteng:
Guatrain project;
GFIP highways projects;
Montecasino project;
Siyavaya project; and
Soccer City stadium.
- North East:
Komatiproject;
Peter Mokaba stadium;
Pietersburg Mall; and
Secunda project.
- Western Cape:
Green Point stadium;
N2 freeway; and
R300 freeway.
- Kimberley:
Sishen Mine project.
- Fin24.com