COSATU+one+day+strike+hits+mines+sector+hard,+Business+Day

Business Day, Johannesburg, 19 May 2006
=Cosatu’s one-day strike hits mines sector hard=


 * //Inequalities have eroded gains of struggle, says Zwelinzima Vavi//**


 * Ayanda Shezi, Economics Correspondent**

THE mining industry was the most affected by yesterday’s nationwide strike against poverty and unemployment, called by the Congress of South African Trade Unions (Cosatu). The sector has also been one of the most affected by the strong rand. Some mines say they have had to retrench workers in an effort to remain in operation.

Analysts said yesterday that although the effect of the strike on the overall economy was likely to be minimal, as it had lasted only one day, it was likely to portray SA in a negative light to potential international investors.

The strike was seen as largely counterproductive, as employers may have to lay off more workers if their businesses do not perform as expected because of time lost due to the strike.

“One of the inhibiting factors to inward foreign direct investments, needed to finance our current account deficit, has been highlighted as SA’s restrictive labour laws, and the strength and political influence that trade unions carry,” Absa treasury economist Monale Ratsoma said.

“The strike also undermines the progress made in employment creation in recent years.”

Ratsoma estimated the monetary loss caused by the strike to be about R2bn.

Chamber of Mines spokeswoman Elize Strydom said that at some mines there was as much as 100% absenteeism yesterday.

She estimated that about half of all mineworkers took part in the protest action.

She called on Cosatu, which claims to have 1,7-million members, to drop its series of protest strikes and fully back government’s programme to boost economic growth and make inroads into unemployment.

Argon Asset Management portfolio manager James Mohlaba said: “Single-day strikes would typically not halt operations in a mine completely, but the impact of the event will most likely be felt later, rather than immediately.”

Harmony Gold Mining, SA’s third-largest gold producer, said about half of its operations were affected by the strike. The mine employs about 46000 people.

Two of three mines owned by Gold Fields, the second-largest producer in SA, were also hit.

AngloGold Ashanti said yesterday the effect of the strike was not yet clear, although it forecast that the strike would not affect its second-quarter production data.

Mohlaba said companies could curtail some nonessential duties, and redeploy the available labour to more critical areas.

“In the weeks after the strike, other days such as weekends or public holidays could be scheduled with workers in an effort to make-up the backlogs,” he said.

Addressing thousands of workers in Johannesburg, Cosatu general secretary Zwelinzima Vavi said inequalities in workers’ salaries undermined the sacrifices of the anti-apartheid struggle.

“We did not make all the sacrifices in prisons and elsewhere so that, even in a democratic country, there should be so many inequalities,” Vavi said.

Reactions to the strike varied from company to company, and among the different sectors.

A total of 59% of the Shoprite Group’s stores were affected by the strike, human resources director Callie Burger said.

General Motors SA said about 80% of workers at its Port Elizabeth plant had reported for work, while DaimlerChrysler said it had closed its operations in SA for the day, and Volkswagen SA said its operations were also affected.

Most schools countrywide were also affected as teachers took to the streets.

Transport, which has been hit hard by previous strikes, was reported to be running as usual in Johannesburg, although Durban experienced a few problems.

With Reuters and Sapa


 * From: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A202673**

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