Fin24

Zuma sounds recession warning

2012-09-17 17:12

Johannesburg - South Africa's gold and platinum mines have lost R4.5bn to forced stoppages this year, President Jacob Zuma said Monday, warning that the country can ill afford a recession due to growing mining unrest.

"Our financial indicators indicate that the total rand value of production lost in the gold and platinum group of mines due to work stoppages over the past nine months is close to R4.5bn," Zuma told a Cosatu conference.

Addressing the four-day conference of the main umbrella union, Zuma urged striking mine workers and employers to find a solution to a spike in labour troubles that has flared into bloodshed and led to mine closures.

The government has struggled to rein in the growing unrest in the platinum belt in northwestern Rustenburg where a deadly wildcat stay-away at the Lonmin [JSE:LON] Marikana plant forced temporary suspensions at several nearby operations.

The National Treasury had forecast an indirect loss of R3.1bn from strikes and stoppages on mines, said Zuma.

"The impact goes beyond the mining sector. The manufacturing sector... is already showing signs of strain," he cautioned.

"We cannot afford to go into a recession, and revert to the 2008 and 2009 period where the country lost close to a million jobs, which we are still battling to recover."

The government on Friday announced a crackdown on the unrest, sending the police with army support in the strik- hit Marikana area to stabilise the area.

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Comments
  • klasgoran.olsson - 2012-09-17 17:26

    This show the need of serious negotiations. In such activities both sides will bring in something to offer, but 900 Rand as last week is naive. As well as the company hae to face that it will cost something, not just pennies, the miners also has to face that negotiations is negotiations. You never get 100 % when bargaining. Beside raised wages the company also might put something more in the basket, maybe extra day off or something. I really hope this circus can stop soon, but donĀ“t just blame the miners. They did extremly wrong by bearing weapons, but the company have for years made very good profit. This is not possible without the workers.

      denise.labuschagne.54 - 2012-09-17 17:48

      OOOHHHHH cry me a river... talk about the rivers, have u addressed the water issue..? babylon gonna fall soon, good time to stop following the blind

      denise.labuschagne.54 - 2012-09-17 18:04

      let me sum it up for you.. we company x cannot pay our/any employees this salary increase, the main reason for this is because we have created this cage/system, we are the only ones who may have access to these riches, we are fallen, we sit ourselves as kings of this world, just because we think we have the knowledge and wisdom to do so, but infact we are nothing more than insect on this world, we destroy everything in our way, as you can see, we have no respect, we do no care for other , only for our own... we believe in we are better than you, because who are you to say otherwise? we control the news, the media. we believe in slave labour, as can see all over africa and the rest of the world.. you are our slaves, and we your masters.. there is nothing life freedom, we control you. what do you have huh? nothing! we control everything... that about how it goes.. i can continue....... but i guess you get the msg, if not, sorry 4 you.

      hugh.robinson.56 - 2012-09-17 18:20

      Obviously you are one of those who overrates his worth in skill and ability. How about some serious production and then talk about increases? Why is labour always demanding but then foot stomping when increses are linked to effort? Obviously you have never noted that it takes five South Africans to one mans work?

      gift.mushi.9 - 2012-09-18 13:42

      What does Zooma knows about recession? Who lied to him?

  • shirley.steenkamp - 2012-09-17 17:26

    Tell that to the "strikers" who obviously think money grows on trees! Damage control was started FAR too late,many investors have been scared off by savage behaiour. You have started to really loose control,unfortunately its the honest, hard working Joe,who goes and does his daily grind,pays his taxes,feeds his family and has been a responsible citizen who will suffer!

  • christelle.james.7 - 2012-09-17 17:26

    And who will pay the miners mr Malema?

  • jannie.devos.56 - 2012-09-17 17:27

    You broke it, you fix it!

      fussed.anderson - 2012-09-17 17:37

      Thats what they are best at

  • Ronald Amos - 2012-09-17 17:34

    this is totally ridiculous! i mean 5bn??? they could've give all the miners at least a big bonus from that huge amount of money! least they would've been at work right now!

  • bbooyse - 2012-09-17 17:38

    ...Unrest brought about my non-existent leadership I might add

  • lvhukeya1 - 2012-09-17 17:38

    ZUMA will be a cause of dat recession bcos he cannot run de country, i realy believe he is a king material.

      mike.lamb.7777 - 2012-09-17 18:21

      You from Jamaica Bro?

      lekkeperd.chevyss - 2012-09-17 18:33

      Smoking something bru?

  • adam.gardener.12 - 2012-09-17 17:39

    Quite a bit of gravy.

  • KReddy - 2012-09-17 17:40

    Only when the Gravy Train starts breaking down do you speak up Mr President? Don't state the obvious, do something! Crime, education, service delivery etc is never a priority, only when your back pocket takes a direct hit? Sies!! Shows where YOUR and your clubs priorities lie.

      amanda.victor.92 - 2012-09-18 10:58

      How about all the murdered farmers? He also hasn't said anything about them. Nada, zippo, zilch. Now all of a sudden he's worried about the mines. I guess we know where he's getting his money from now.

  • sebenza.vanrooy - 2012-09-17 17:48

    If one month tax from the mines amount to 5bn, then why are so many people jobless. Or is this one of zumas imaginary figures popping out from the top deck of his double decker head? after all, were are the 5million jobs figures he promised? when is mangaung by the way? ek is gat vol.

      KReddy - 2012-09-17 17:51

      Hahaha, love the top deck part, hahaha

      fourhundredkg.bobbejaan - 2012-09-17 22:23

      Yeah, you sure cannot call Zumzum level-headed...

  • KyleVDMerwe7 - 2012-09-17 17:49

    they will still vote for him, they should be grateful they have a job unlike the millions of people unemployed in this country

  • kettlebel - 2012-09-17 17:57

    wat weet hy van n ressesie Hy verstaan nie eers GR 1 SOMME!!!

  • thabo.ndhlovu.5 - 2012-09-17 17:57

    All dis is happening bcoz of zuma vs malema war....#mxm....

  • mshiniboys - 2012-09-17 18:10

    so much on a few days the shareholders make?

  • firstseed.mbeva - 2012-09-17 18:19

    Ok,I did not know that Zuma is an economist.Mbeki was,isn't?

  • hugh.robinson.56 - 2012-09-17 18:21

    Mr. Zuma It may be the start of a recession for you but for some it began 18 months ago when the rest of the world stopped buying our manufactured goods.

  • vernon.samuel.7 - 2012-09-17 18:27

    Ok, I will try to remain as calm as possible and avoid vulgarities. But really Mr President, is this the biggest problem in our country? This is a fraction of the estimated 20 billion that the country has lost due to mismanagement by your government. You take forever to act against wayward thieving ministers. You have the nut-job of a judge president still on a huge fat salary while on special leave. In fact there are hundreds of your employees on full salary, pending disciplinary or legal action. You ignore those and allow them to go on for years because the taxpayer is happily paying those millions in salaries that are not being earned. Every minister is exploiting your confounded ministerial handbook to the limit and beyond. Your Limpopo premier has run his province to the ground. Ditto your Eastern Cape premier. The ministers of police, health and education alone justify the reinstatement of the death penalty by their incompetence. You yourself are building up your Nkandla homestead and multiple first ladies quickly, while you are still first citizen. And you have the damn audacity to blame miners for our country's ills. You sir, are a twat of the higest order. Your arrogance knows no bounds. Right now I have more faith in Juju running this country than you. My only humble request is that you kindly shut up.

  • FANNYDNA - 2012-09-17 18:31

    Dear Zuma u r forcing to end strike with ur cabinet.So why cant you force to\r\nMINES to give the miners what they demand.The more u send cops n soldier is\r\nthe more u minus our like to u.wha do you care between MONEY N PEOPLE.

  • vivian.harris.73 - 2012-09-17 18:37

    The National Treasury had forecast an indirect loss of R3.1bn rand from strikes and stoppages on mines, said Zuma.\r\nWhat about the billions lost due to corruption and careless spending by the ruling government?

  • julio.sanfona - 2012-09-17 18:39

    A simple solution to the miners' wages demand: I you're not happy with your work conditions, resign and find a job elsewhere where you'll be rewarded better. I'm sure that there are lots of people who would be grateful to have your job.

  • ike.jakson - 2012-09-17 20:18

    With the salaries drawn by Parliament and Municipal Bureaucrats I doubt if any of the strikers even know the word recession or the meaning of such a commodity. They want money and Central and Local Government Officials are showing them a fine example; these poor creatures just some of the bounty for themselves.

  • charles.kieser.1 - 2012-09-17 20:56

    I thought we were in a recession sherlock .

  • douglas.reid.921 - 2012-09-17 21:14

    And the R675 billion lost to corruption???

  • Vince.York - 2012-09-17 21:42

    Narrow the GAP. We should ALL be earning approximately 45-65% of what the president and directors of inflated BEE companies earn - in applying the STATED OBJECTIVES OF GOVERNMENT to narrow the wage gap - or is that just another heap of ANC-PF empty words and promises! oh, unless you happen to be a white South African male - nearly forgot the racist slant of this country by enforcing immoral and unethical legislation and policies CONTRARY TO INTERNATIONAL MOReS!

  • gregory.jurgens - 2012-09-17 23:36

    The country is collapsing under your leadership , Zuma.

  • jacque.raymer - 2012-09-18 01:55

    maybe another ressecion is exactly what this country needs, the bigger the ressecion the better. it will start the revolution and lead to the ANC downfall. i'd rather see it happen quickly than sit around another 10 years watching them slowly destroy this country... so many infrastructures on the verge of collapse that this kind of thing is a very real possibility and not just a \potential event\ anymore.

  • brionyl.french - 2012-09-18 05:26

    These people dont understand what they doing to the economy and neither does Zuma know... But the recession was always up for a problem as the Euro is screwed!

  • maureen.churchill.9 - 2012-09-18 06:38

    The recession bell should have been rung a long time ago.

  • sharon.truebodyvice - 2012-09-18 08:20

    This must fall on the anc shoulders alone

  • janet.pretorius1 - 2012-09-18 11:54

    Amazing how the mines can afford to lose R4,5B in 9 mnths but they can't afford to pay their workers more. Sure the overheads from increases would have been far less than the losses mentioned in this article.

  • lmapheto - 2012-09-18 13:11

    Its time we discuss Voting in this country as an illusion of choice...

  • winifred.watson.9 - 2012-09-18 15:34

    The whole world is in a recession, does this guy not understand it. He has only woken up to the fact now.....ag shame, maybe you should forgo that 5.5% increase. What about giving it back to the taxpayers for being hardworking and supporting you and your cronies the last four years. Zuma. south african cant afford you, think its time and your cadres in parlement move out, the citizens dont want you anymore

  • peter.ballie.5 - 2012-09-18 20:01

    I know!! Everyone demand 22% more pay then we can all buy more and there won't be a recession....I am so clever! And if there is a recession we will just blame the unions because they are so clever too.

  • peter.ballie.5 - 2012-09-18 20:10

    ANC govt is so cool: their economic genius has kept us out of the world wide recession and kept our inflation rate so amazingly low. Hang on a sec.... why has food, petrol and the general cost of living gone up so much then? Obviously non of these are linked to ANC inflation.

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