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THE National Union of Mineworkers of SA (Numsa) is to be commended for its decision to call off its strike in the vehicle parts sector. The problem is that the strike has had devastating consequences for the South African enonomy – and, therefore, indirectly also for Numsa’s members.
According to news reports, Numsa suffered a humiliating reverse. It got exactly the pay increases the employers offered in the first place, and not a cent more.
Furthermore, reports indicate that the sector lost about R20bn, while exports were slashed by 75%.
Let us assume for argument’s sake that you, dear reader, are a rich businessman from, say, Denmark. You have about €20m (about R270m) burning a hole in your back pocket, and you want the money to work for you.
You want to invest it someplace where you can turn a handsome profit. You are not a charitable institution, so you are not going to pour the money into a hospital for the terminally ill in Somalia.
You’re looking around the world. In current economic circumstances, it is a buyer’s market. Where do you go?
In Europe itself the interest is very low and you have to fulfil about a zillion conditions. Saudi Arabia? Too strict, those Muslims. India? Maybe, but the Indians are so corrupt, old chap. Singapore? A bit difficult to squeeze yourself in there.
Let’s look at the US. Maybe later; at present the Republicans are so full of hatred for Barack Obama that they are willing to pull the whole country down in order to get to him.
Well, how about Brazil? That’s more like it. Even Lesotho? Rather primitive but stable, and a lot of opportunities for growth.
Even Greece, the sick man of Europe, is slowly climbing out of the economic valley. Although their workers still are too work-averse.
SA's hassle factor too high
And South Africa? Oh dear old stick, I’m afraid the hassle factor is rather severe there. Firstly you have a government with a million rules and regulations (half of which are never implemented), then you also have this pesky BEE policy which limits your freedom to do as you please.
Corruption is rather bad, but there are worse places in this regard. But then, there are these militant trade unions which strike at the drop of a hat. No, let’s not go to South Africa. The fact that it is the country of Nelson Mandela makes no difference.
The choice is between Brazil and Lesotho. Let’s throw the dice!
This is, of course, a fictitious argument by a ficticious businessman. But his reasoning is not entirely sucked out of my thumb. I can truly imagine a businessman who thinks this way.
The point is that nobody owes South Africa anything. In the years around 1994 we went through a kind of honeymoon, with everybody fussing about us, like grown-ups when seeing a baby.
But nobody is going to make that baby CEO of a company. First, it has to grow up and prove him- or herself.
Nobody is going to build a new factory in South Africa because of what happened in 1994 or because of Mandela’s iconic status. People are only going to invest if they know they can earn a profit. Money is what makes the world go around – and it's a strange, strange world we live in, Master Jack, as the song goes.
According to news reports, some international companies are already considering moving their African headquarters from South Africa to elsewhere in Africa. This is an ominous action, if it takes place.
In the 1990s, the South African government quite rightly advertised our country as the gateway to Africa. Look at our excellent physical and financial infrastructure, our political stability, the world was told.
And the world came. Numerous multinationals set up shop in South Africa as a springboard to move out into Africa.
Not any more, apparently. And who do we have to thank for this? Numsa, for one, but all the trade unions who strike so easily, as well as the governmental mismanagement which we have almost started to experience as normal.
In the end it is we, the ordinary people, who will pay the price. And, therefore, if we call the government to account, and do it vociferously, we do it in our own interest.
- Fin24
*Leopold Scholtz is Media24's correspondent in Europe. Views expressed are his own.
According to news reports, Numsa suffered a humiliating reverse. It got exactly the pay increases the employers offered in the first place, and not a cent more.
Furthermore, reports indicate that the sector lost about R20bn, while exports were slashed by 75%.
Let us assume for argument’s sake that you, dear reader, are a rich businessman from, say, Denmark. You have about €20m (about R270m) burning a hole in your back pocket, and you want the money to work for you.
You want to invest it someplace where you can turn a handsome profit. You are not a charitable institution, so you are not going to pour the money into a hospital for the terminally ill in Somalia.
You’re looking around the world. In current economic circumstances, it is a buyer’s market. Where do you go?
In Europe itself the interest is very low and you have to fulfil about a zillion conditions. Saudi Arabia? Too strict, those Muslims. India? Maybe, but the Indians are so corrupt, old chap. Singapore? A bit difficult to squeeze yourself in there.
Let’s look at the US. Maybe later; at present the Republicans are so full of hatred for Barack Obama that they are willing to pull the whole country down in order to get to him.
Well, how about Brazil? That’s more like it. Even Lesotho? Rather primitive but stable, and a lot of opportunities for growth.
Even Greece, the sick man of Europe, is slowly climbing out of the economic valley. Although their workers still are too work-averse.
SA's hassle factor too high
And South Africa? Oh dear old stick, I’m afraid the hassle factor is rather severe there. Firstly you have a government with a million rules and regulations (half of which are never implemented), then you also have this pesky BEE policy which limits your freedom to do as you please.
Corruption is rather bad, but there are worse places in this regard. But then, there are these militant trade unions which strike at the drop of a hat. No, let’s not go to South Africa. The fact that it is the country of Nelson Mandela makes no difference.
The choice is between Brazil and Lesotho. Let’s throw the dice!
This is, of course, a fictitious argument by a ficticious businessman. But his reasoning is not entirely sucked out of my thumb. I can truly imagine a businessman who thinks this way.
The point is that nobody owes South Africa anything. In the years around 1994 we went through a kind of honeymoon, with everybody fussing about us, like grown-ups when seeing a baby.
But nobody is going to make that baby CEO of a company. First, it has to grow up and prove him- or herself.
Nobody is going to build a new factory in South Africa because of what happened in 1994 or because of Mandela’s iconic status. People are only going to invest if they know they can earn a profit. Money is what makes the world go around – and it's a strange, strange world we live in, Master Jack, as the song goes.
According to news reports, some international companies are already considering moving their African headquarters from South Africa to elsewhere in Africa. This is an ominous action, if it takes place.
In the 1990s, the South African government quite rightly advertised our country as the gateway to Africa. Look at our excellent physical and financial infrastructure, our political stability, the world was told.
And the world came. Numerous multinationals set up shop in South Africa as a springboard to move out into Africa.
Not any more, apparently. And who do we have to thank for this? Numsa, for one, but all the trade unions who strike so easily, as well as the governmental mismanagement which we have almost started to experience as normal.
In the end it is we, the ordinary people, who will pay the price. And, therefore, if we call the government to account, and do it vociferously, we do it in our own interest.
- Fin24
*Leopold Scholtz is Media24's correspondent in Europe. Views expressed are his own.
