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Johannesburg - The strike season in SA is in full swing but a tipping point is within reach when it comes to the loss to the strikers themselves, according to analysts.
Dawie Roodt, an economist at Efficient Group, said: "If there are 50 working weeks in a year, then one week is about 2% of the year. So if I want an additional 2%, I can afford to strike and provided I get the 2%, I'm not worse off and not better off, I am at break-even point. However, if I want 2% and I strike for two weeks, it doesn't make sense because I've essentially lost 2%.
"Right now, it's been about two weeks since the strike began and the unions have lost 4%, so they have roughly reached break-even point. If they strike for another week, it becomes irrational to strike," Roodt said.
The National Union of Metalworkers (Num) kicked off strike season two weeks ago on Monday July 4, and an increase of 8% to 10% was agreed upon which would run for the next year.
The Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu) as well as the General Industries Workers Union of SA (Giwusa), who together represent about 70 000 workers, began strike action last week also demanding better wages and employee benefits.
Unions are pushing for an increase of between 11% and 13%, whereas employers are offering between 4% and 7%. Some of the more visible effects of the strike include fuel shortages in some areas and Investment Solutions economist Chris Hart predicts a 0.2% reduction in economic growth from the strike action.
Independent Research obtained by BusinessLive/I-Net Bridge has estimated how much it costs the average striker to participate in the strike and how much time it would take to recover the loss of earnings, even if the increase the unions are fighting for is accepted.
According to the research, if one assumes that a striking worker earns an average of R48 000 per annum before tax and he or she works nine hours a day for 250 days out of the year, their average daily rate is about R192.
With the Ceppwawu strike now in its sixth day, that worker has already lost R1 152, and it would take 55 days to recover that loss even with an 11% hike. This is because the increase that the striker will receive does not make up for the loss incurred while striking.
If a striker earns R192 per day and receives an 11% increase, the rise in earnings per day is R21.12. So, to make up for the amount lost while striking, they would have to work an additional 55 days.
Sacrifice
John Appolis, national policy coordinator for Ceppwawu, said that the strike is continuing and that the union is still negotiating with the pharmaceutical, industrial chemicals as well as the petroleum industries.
"At the moment industrial chemicals is offering 7.5% and the petroleum industry is offering 8%. We are going to take the offers back to our members and hear their response," he said.
He added that while the unions don't calculate how much money is lost during a strike, the members know that they have to make a sacrifice.
"Our members know that no work means no pay and they also know that in the long term they will have improved wages as well as benefits. However, to enjoy these benefits they have to make a sacrifice in the short term, and they know that," he said.
Dawie Roodt, an economist at Efficient Group, said: "If there are 50 working weeks in a year, then one week is about 2% of the year. So if I want an additional 2%, I can afford to strike and provided I get the 2%, I'm not worse off and not better off, I am at break-even point. However, if I want 2% and I strike for two weeks, it doesn't make sense because I've essentially lost 2%.
"Right now, it's been about two weeks since the strike began and the unions have lost 4%, so they have roughly reached break-even point. If they strike for another week, it becomes irrational to strike," Roodt said.
The National Union of Metalworkers (Num) kicked off strike season two weeks ago on Monday July 4, and an increase of 8% to 10% was agreed upon which would run for the next year.
The Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu) as well as the General Industries Workers Union of SA (Giwusa), who together represent about 70 000 workers, began strike action last week also demanding better wages and employee benefits.
Unions are pushing for an increase of between 11% and 13%, whereas employers are offering between 4% and 7%. Some of the more visible effects of the strike include fuel shortages in some areas and Investment Solutions economist Chris Hart predicts a 0.2% reduction in economic growth from the strike action.
Independent Research obtained by BusinessLive/I-Net Bridge has estimated how much it costs the average striker to participate in the strike and how much time it would take to recover the loss of earnings, even if the increase the unions are fighting for is accepted.
According to the research, if one assumes that a striking worker earns an average of R48 000 per annum before tax and he or she works nine hours a day for 250 days out of the year, their average daily rate is about R192.
With the Ceppwawu strike now in its sixth day, that worker has already lost R1 152, and it would take 55 days to recover that loss even with an 11% hike. This is because the increase that the striker will receive does not make up for the loss incurred while striking.
If a striker earns R192 per day and receives an 11% increase, the rise in earnings per day is R21.12. So, to make up for the amount lost while striking, they would have to work an additional 55 days.
Sacrifice
John Appolis, national policy coordinator for Ceppwawu, said that the strike is continuing and that the union is still negotiating with the pharmaceutical, industrial chemicals as well as the petroleum industries.
"At the moment industrial chemicals is offering 7.5% and the petroleum industry is offering 8%. We are going to take the offers back to our members and hear their response," he said.
He added that while the unions don't calculate how much money is lost during a strike, the members know that they have to make a sacrifice.
"Our members know that no work means no pay and they also know that in the long term they will have improved wages as well as benefits. However, to enjoy these benefits they have to make a sacrifice in the short term, and they know that," he said.
