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Strike costs SA R15m a day

Jul 28 2009 12:31 Print this article  |  Email article

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Johannesburg - The strike by municipal workers is costing the country in the region of R15m a day, an economist said on Tuesday.

"The problem is, it's very difficult to work out [the cost]. I can't work out the damage of all the shops and the traders. It's a hassle factor.

"But the cost is around R15m a day in workers' wages, I guess," economist Mike Schussler told Sapa.

He said the longer the strike continues, the more the cost escalates.

"By the second week it becomes a huge problem, because then a person pays out of his own pocket to remove his rubbish.

"All these factors have to be considered, so R15m is a little simplistic but it's the best we can do at the moment," said Schussler.

Figures on the number of municipal workers arriving for work are also different.

The unions claim "overwhelming" support, saying more than 150 000 out of a workforce of 190 000 did not show up work.

But the employer, the SA Local Government Association (Salga), says only 40% of workers participated in the stay away.

A strike by members of the SA Municipal Workers' Union and the Independent Municipal and Allied Trade Union entered its second day on Tuesday.

Thousands of workers took to the streets on Monday to press for better wages, harassing hawkers and emptying rubbish bins.

Unions are demanding a 15% increase and Salga has tabled a new offer of 13%.

- Sapa

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