Strike will have negative impact abroad - SACCI

Thursday, August 19, 2010

Pretoria - As workers in the public service intensify their strike action, the South African Chamber of Commerce (SACCI) is concerned that the move will have a negative impact on the country's image abroad.

"It is with great disappointment that SACCI notes that an agreement has not been reached in the compensation negotiations between the Public Service Commission and Labour," SACCI said on Wednesday.

It condemned the undisciplined behaviour of workers in some instances where there were reported acts of intimidation by teachers of pupils attending schools as well as striking health workers who were reporting for work.

"Such behaviour will impact negatively on global perceptions of the business environment in South Africa. The strike also adds to the pressures relating to service delivery backlogs," it said.

The failure to reach an agreement has an impact on the economy that stretches beyond the Public Service Commission.

"Additional pressure on public sector finances and the subsequent need to increase the taxes will have consequential downstream impact on both business and consumers.

"Increased taxes will hamper the growth particularly of small and medium enterprises, and make it more difficult for them to remain viable. This has the possible result of increasing the number of closures of small and medium enterprises that have not yet recovered from the global downturn."

Government has given the unions involved in the strike action until today to sign on the current public sector salary increase offer of 7 percent, failing which the offer will be implemented.

Public Service and Administration Minister Richard Baloyi said government would no longer afford to increase the current offer which also includes a R700 housing allowance and annual 1.5 pay progression linked to performance.

To date the unions have rejected this offer. They are instead demanding an 8.6 percent wage hike and a monthly R1000 housing allowance.

"We are saying as the employer, the call for a strike at the moment where children are due to sit for exams, where South Africans are demanding acceleration of services, we are saying a strike at this time is unfortunate for the country, workers and leaders irrespective of where they find themselves," said the minister.

Commenting on the motor industry strike which enters day seven today, SACCI said the strike action has a negative impact on the export of vehicles. Workers are demanding a 15 percent wage increase.

"The ability of the South African economy to determine a positive trajectory for employment growth is directly correlated with our ability to signal a strong work ethic, high productivity and an environment conducive to ease of doing business," SACCI said.