No signs of a respite yet

South Africa remains firmly in the smothering grip of its annual wage negotiations and accompanying strike season. Several strikes continue, while new ones could be launched. The consequences for the economy could become more serious.

The National Union of Metalworkers of South Africa (Numsa) which represents about 220,000 workers ended its strike after securing a 10% pay increase for its members.

However, the petrol, paper and pharmaceutical industries continue to be affected by the ongoing two-week-old strike by some 70,000 workers of the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu) who seek an increase of 11%-13%. Their strike has caused petrol pumps in Gauteng, KwaZulu-Natal and the Northern Cape to run dry and has slowed down economic activity in the affected regions.

Among those most heavily affected are haulage companies and taxis. By yesterday  250 filling stations in Gauteng had run dry. The strike has blocked or delayed fuel deliveries, sparking panic buying in Johannesburg and some other areas.

Solidarity union, while small but influential since it represents skilled workers at key entities such as the state-owned PetroSA and petrochemicals group Sasol, has suspended its participation in the strike and its members are returning to work. But for the other unions in the sector, negotiations and the strike continue.

This week the strike action will extend into the diamond mining sector when members of the National Union of Mineworkers (NUM) launch their strike at De Beers  in pursuit of a 15% pay rise, with de Beers offering half of that.

Meanwhile 150,000 workers belonging to the NUM and Solidarity on Sunday started striking in the coal mining sector as employers refuse their demand for a 14% increase. The NUM is also threatening to strike in the gold and platinum sectors, as well as at state electricity utility Eskom, where it demands a 16% increase, with Eskom offering 7%.

There are fears that the latter strike, if it goes ahead, and the one in the coal industry that started on Sunday, could cause power outages with serious negative consequences for industry and the economy. However, Eskom says it has enough coal supplies for 41 days. It is unlikely that the coal sector strike would endure beyond that.

More bad news is that a national municipal strike may be on the cards when the Cosatu-affiliated South African Municipal Workers Union (Samwu) makes known its strike decision this week.

The above-inflation settlements being extracted by the strikes are seen as adding to the cost of doing business in South Africa and the pressures for shedding jobs to keep labour costs under control.

While the current strikes have caused slow-downs and losses, many economists think it has not yet reached the point where the losses cannot be made up when the strikes end. But that picture could change dramatically if strikes continue for more than a month.

Against the background of wage increase demands up to three times the inflation figure and union militancy, a number of other side issues are also being settled Pick ‘n Pay is still in discussions with the South African Commercial, Catering and Allied Workers Union (Saccawu) which has threatened disruptive action over the retailer’s plans to retrench up to 3,000 workers.

And following a march on Saturday in Carletonville, the NUM has threatened to intensify its marches if government and employers do not improve working conditions in South African mines. This year alone around 70 miners have died in underground accidents.

Another Cosatu-affiliated union, the South African Transport and Allied Workers Union (Satawu) has also again stepped up pressure on the Department of Transport to scrap Gauteng's planned e-tolling system, saying if the government failed tio heed its call, the union would call a general strike. Such a strike would paralyse the Souith African transport sector with serious economic consequences.