Strikes could cost jobs

Johannesburg - As numerous deadlocks loom over wage negotiations, economists say the recession heightens the counter-productivity of a recent spate of strikes.

This week, the Chemical, Paper, Printing, Wood and Allied Workers' Union (Ceppwawu) - at loggerheads with paper and packaging producers Mondi and Sappi over pay hikes - received official sanction to strike with 48 hours' notice.

According to Solidarity, it obtained a strike certificate earlier this week together with other trade unions in the industrial chemicals sector. Employers in the industry include Sasol, Afrox and Omnia. Solidarity demands a 10.4% wage increase, while management is offering a 7% increase.

In the mining sector, the Chamber of Mines is in talks with the National Union of Mineworkers (Num) over salary increases.

Workers in the transport sector affiliated to the South African Transport and Allied Workers Union (Satawu) striked in April. They demanded minimum wage of R6 000 per month for drivers and R3 000 per month for other workers, an increase of 15% across the board and four months' paid maternity leave. They finally settled for an 11% across-the-board pay hike.

Similarly, Johannesburg's Metrobus employees striked for five weeks after failing to reach an agreement over wages.

Strikes not the only avenue

Sanlam Group economist Jac Laubscher said: "Any strike action causes disruption to production". He said the direct impact of strikes is exaggerated, because there are other means that could achieve the desired result.

Liberty Life economist Tendani Mantshimuli said the biggest concern is that when people are losing jobs, demands for higher pay may work against labour in the long run.

She said workers are being retrenched because companies are not doing well. "If people are asking for higher wages businesses cannot afford, granting these demands might mean companies cannot retain as many people as they could have otherwise."

However, she said unions usually only want an increase in the minimum wage. "Inflation was very high in 2008 and workers just want to match the cost of living prior to the high inflation increases." She said businesses should explore other cost-cutting possibilities before lowering labour costs.

Spokesperson Jaco Kleynhans said Solidarity has not been involved in any strikes this year. "We've actually experienced low levels of strikes in all the industries of more than 8 000 organised companies in SA.

"The big industries like the mining and chemicals are now in the middle of negotiations and it usually takes a month or two for many of these negotiations to be finalised," said Kleynhans.

Trade federation Cosatu national spokesperson Patrick Craven agreed. He said: "Contrary to media reports, there has been relatively little strike action this year. It has mainly been small localised strikes."

- Fin24.com