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WHAT is the possible long-term social, economic and business effect of the immense rolling mass action that South Africa’s biggest health sector union this week threatened to embark upon?
I am sure this is the question being pondered by many South Africans, particularly considering that the country recently emerged from a crippling platinum mining sector strike and the economy continues to flounder.
The National Education Health and Allied Workers Union (Nehawu) is demanding a 15% wage increase and said it has undertaken to begin a string of marches over pitiful government services.
READ: Nehawu demands 15% pay hike
The union, which boasts about 280 000 members, said South Africa is facing a public health crisis because of government outsourcing.
The union is also demanding a R3 000 housing allowance for its workers in a bid to reduce extensive disparity among health workers.
"Our abolition of these salary levels is informed by the urgent need to close the huge wage gap between the highest paid and the lowest paid," Reuters quoted Nehawu as having said this week.
"In light of a series of stories reflecting wastes and fruitless expenditures we expect that there will be enough money for the increase," it added.
READ: Public works wasted R35bn in five years
This expectation could lead to a protracted strike or rolling mass action.
The most prolonged wage strike in South Africa's history started in the platinum sector in late January this year. It came to an end in June after five months.
This battered the moribund South African economy. Further industrial action will be like a final nail in the coffin of the country’s economy, which is likely to grow by only 1.5% this year, according to the Reserve Bank.
Earlier this month, outgoing Reserve Bank governor Gill Marcus said she was concerned that the latest wage demands had failed to compare with inflation and productivity.
If marches continue unabated this would definitely hit public hospitals which are already under pressure, lacking proper facilities and crucial medication.
Unemployed people with no medical aid would suffer, because they do not have an alternative to expensive private hospitals.
We hear that South Africa is currently facing junk status rating from the global rating agencies. It will certainly be interesting to note what effect this rolling mass action will have on the country’s credit rating.
The three top rating agencies, Fitch, Moody’s and Standard & Poor’s, have often raised concerns about the country’s strikes in their assessments of South Africa’s credit standing.
It would be a negative if Nehawu's protests are on a bigger scale and last long enough to have a material effect on the economy or financial stability.
It would be great if the government of the day carries out the economic policies necessary to improve pitiful government services, end outsourcing in government circles and reduce glaring inequalities in the health sector.
But knowing this government like I do, these are difficult issues for them to fix. This is in view of the fact that some senior government members are gaining financially from the outsourcing arrangements and could find it hard to meet these demands.
So, South Africa could be on the verge of yet another crippling wage strike, putting the struggling economy under further pressure.
- Fin24
*Mzwandile Jacks is an independent journalist. Opinions expressed are his own.
I am sure this is the question being pondered by many South Africans, particularly considering that the country recently emerged from a crippling platinum mining sector strike and the economy continues to flounder.
The National Education Health and Allied Workers Union (Nehawu) is demanding a 15% wage increase and said it has undertaken to begin a string of marches over pitiful government services.
READ: Nehawu demands 15% pay hike
The union, which boasts about 280 000 members, said South Africa is facing a public health crisis because of government outsourcing.
The union is also demanding a R3 000 housing allowance for its workers in a bid to reduce extensive disparity among health workers.
"Our abolition of these salary levels is informed by the urgent need to close the huge wage gap between the highest paid and the lowest paid," Reuters quoted Nehawu as having said this week.
"In light of a series of stories reflecting wastes and fruitless expenditures we expect that there will be enough money for the increase," it added.
READ: Public works wasted R35bn in five years
This expectation could lead to a protracted strike or rolling mass action.
The most prolonged wage strike in South Africa's history started in the platinum sector in late January this year. It came to an end in June after five months.
This battered the moribund South African economy. Further industrial action will be like a final nail in the coffin of the country’s economy, which is likely to grow by only 1.5% this year, according to the Reserve Bank.
Earlier this month, outgoing Reserve Bank governor Gill Marcus said she was concerned that the latest wage demands had failed to compare with inflation and productivity.
If marches continue unabated this would definitely hit public hospitals which are already under pressure, lacking proper facilities and crucial medication.
Unemployed people with no medical aid would suffer, because they do not have an alternative to expensive private hospitals.
We hear that South Africa is currently facing junk status rating from the global rating agencies. It will certainly be interesting to note what effect this rolling mass action will have on the country’s credit rating.
The three top rating agencies, Fitch, Moody’s and Standard & Poor’s, have often raised concerns about the country’s strikes in their assessments of South Africa’s credit standing.
It would be a negative if Nehawu's protests are on a bigger scale and last long enough to have a material effect on the economy or financial stability.
It would be great if the government of the day carries out the economic policies necessary to improve pitiful government services, end outsourcing in government circles and reduce glaring inequalities in the health sector.
But knowing this government like I do, these are difficult issues for them to fix. This is in view of the fact that some senior government members are gaining financially from the outsourcing arrangements and could find it hard to meet these demands.
So, South Africa could be on the verge of yet another crippling wage strike, putting the struggling economy under further pressure.
- Fin24
*Mzwandile Jacks is an independent journalist. Opinions expressed are his own.
