Johannesburg - The Congress of SA Trade Unions (Cosatu) has vowed to mobilise two million members as it embarks on a one-day national strike against rising food, electricity and fuel prices on Wednesday, it said on Tuesday.

Economists said the strike would be a "blemish" on the economy, but doubted that Cosatu would be able to get two million people to join the strike.

"Two million accounts for one-fifth of the South African labour force. Cleary from a production point of view, it will be a blemish to the economy for one day," said Goolam Ballim, chief economist at Standard Bank.

However, Ballim said the workers would be reluctant to take too many days off for fear of loss of income.

Another economist, Mike Schüssler at T-Sec, said it "was highly unlikely" that two million people would be off work; nevertheless a nationwide strike would set the economy back, but it was short enough to recover all production losses, he said.

R200m lost in wages

"A one-day strike allows the economy the catch up, and I doubt that two million people will be on strike. I think around 100 000 is more realistic," said Schüssler.

Schüssler estimated that around R200m in wages would be lost if Cosatu was able to gather two million people to join the stay away, but could not speculate on the cost of production losses.

The strike is the culmination of regional and provincial strikes over the last month that severely hit mining companies in protest over soaring food, electricity and fuel prices in the country.

Other issues central to the strike are the danger of retrenchments in the mining sector and elsewhere due to Eskom's decision to reduce power supply, and the power utility's holding back of any new major developments.

Cosatu is further concerned that Eskom's 27.5% tariff increase, which municipalities can increase still further, would put thousands more jobs at risk, as companies, already facing massive increases in the cost of fuel and interest rates, try to balance their books by retrenching workers, or face the threat of closing down.

"Workers should not be asked to pay for government's failure to invest in electricity in the late 1990s, as a result of its plans to privatise Eskom, and did nothing when it was warned about the amount of investment that would be required to meet the expected rise in demand for power in the future," said Patrick Craven, Cosatu's spokesperson.

No work, no pay

As a pre-emptive measure ahead of the strike, several vehicle manufactures will shut down their factory plants on Wednesday on a no work, no pay basis.

Luxury vehicle maker Mercedes-Benz SA said it would close its factory plant tomorrow should the strike take place.

"Mercedes-Benz SA management acknowledges the very real problems associated with the present economic climate, but has pointed out that the solution does not lie in stopping production," said Annelise van der Laan, spokesperson for Mercedes-Benz SA.

Van der Laan said Mercedes Benz, which produces roughly 220 units per day, said should it be necessary to recover production due to sales demand, arrangements would be made between the company and the unions.

Eastern Cape-based Volkswagen SA's factory would also not be operating on Wednesday on no work, no pay basis, spokesperson Bill Stevens said.

VWSA produces between 300 and 400 vehicles a day.

Rella Bernades, Ford Southern Africa's spokesperson, said the manufacturer assembly plant in Silverton, Pretoria and engine facility in Struadale, Port Elizabeth will be shut on Wednesday.

On average Ford SA produces around 540 vehicles day, both for the domestic and exports markets at its Pretoria plant and a further 600 engines at its Port Elizabeth plant.

Demonstrations will be held on Wednesday in the Western Cape, Northern Cape, Free State, Eastern Cape, Gauteng, KwaZulu-Natal and Mpumalanga provinces.

- I-Net Bridge