Fin24 reported that the Steel and Engineering Industries Federation of SA was concerned by the country’s shrinking economy caused by strike action.
Mr Kaizer Nyatsumba CEO of Seifsa said that he was worried about what damage the Numsa strike would have given that each day employees spent away from work cost the industry more than ZAR 300 million.
Mr Nyatsumba said that “Ours is a very strategic sector with both upstream and downstream impacts on other important industries like mining, construction and auto manufacturing.”
He said that “Therefore, it is not just companies in the sector that are affected or stand to be affected but it is also those companies in these other industries.”
Around 220 000 members of Numsa in the steel and metal sector began an indefinite strike for a double digit wage increase on Tuesday. The union’s members marched in Johannesburg, Durban, Port Elizabeth, East London, George and Cape Town.
Mr Nyatsumba said that some international companies which had businesses in the country were considering closing their operations and moving them to countries with a more stable labour dispensation. Seifsa was determined to work towards finding a resolution so workers could return to work.
He said that “For the sake of our economy, which has been seriously under-performing and has already taken a considerable hammering as a result of the strike in the platinum sector that ended last week, we hope that it will be possible for us, employers and labour, to find one another over the next few days.”
Source – Fin24