Recent figures show Industrial action has negative impact on SA economy
- Published on 29 Aug 2013
- HR Pulse News Desk
In an article written by Natasha Odendaal on Polity, South Africa’s real gross domestic product (GDP) showed growth in the second quarter of this year. However, experts say that we should not expect similar growth in the third quarter because of recent industrial action in sectors such as mining and the automotive industry.
Nedbank made a remark to this effect:
“Already the third quarter has seen industrial action in the motor vehicle, construction and gold mining industries, which will negatively impact third-quarter growth. Our forecast for full-year growth is 2%, down from the 2.5 % recorded in 2012.”
Peter Attard Montalto, strategist for Nomura International, told clients that although the SA economy had experienced growth beyond their expectations in the second quarter of 2013, there was “little cause for optimism” as underlying economic growth “looked weak and future drivers unclear”.
In the past couple of months, there have been countless strikes, or threats of strikes, in various sectors of the SA economy:
- In August, about 31 000 Numsa-aligned workers downed tools because pay talks deadlocked in July.
- Again in August, trade union Solidarity contemplated strike action at Lonmin over the majority union agreements.
- In July, violent strikes occurred at Eskom’s Medupi power plant.
