Cape Town - President Jacob Zuma has warned of dire damage to SA’s economy, on the back of mine and transport strikes, and has launched an urgent bid to prevent the country reaching “crisis point” by convening a top-level summit on Friday involving the government, business and unions.
For the past week, senior economic players – such as the Cape Chamber of Commerce and Industry locally, and Finance Minister Pravin Gordhan nationally – have warned that the SA economy was at risk, as strikes have hit international investor confidence forcefully.
Central Bank governor Gill Marcus said earlier this week the domestic economic outlook was “deteriorating rapidly”, with the unrest likely to lead to job losses.
Zuma has summoned the most-senior caretakers of SA’s economy at short notice to the Presidential guest house in Pretoria, where he is due to lead a ministerial delegation to talks with representatives of Business Unity SA, the Black Business Council, Cosatu, Nactu, Fedusa and community sector representatives.
Sources said the meeting was prompted by the strikes across SA, by the agency downgrades, much-speculated possible fear among future international investors, and the already-bleak international global economic outlook.
“Our responsibility is to ensure that we do not reach a crisis point,” Zuma said on Thursday, in his address to the Black Business Summit in Midrand.
Zuma said the country had lost R4.5 billion in the gold and platinum mining sectors, and R118 million in the coal industry, due to the ongoing strikes. And the rand had hit its lowest level against the dollar in three months a few days ago, at nearly R9 to the greenback.
Currently an estimated 75 000 miners and 20 000 truck drivers were on strike.
Adding to the negative global economic outlook were various internal challenges.
“The ongoing strikes in the mining sector have had a significant effect on the economy in 2012,” Zuma warned.
“As of mid-September, the National Treasury estimated that the total rand value of production lost in platinum and gold mining has been roughly R4.5bn, while R118m was lost in coal.
“The strikes have spread to other sectors such as manufacturing, logistics and services.
“The announced municipal workers strike could include most of Samwu’s 190 000 members.
“This will add to 75 000 miners who are on strike as well as 20 000 truckers.”
Zuma urged the industrial disputes be resolved without delay – but also took a shot at employers, ahead of any such agreements.
“I’m not happy at all with the entry level of salaries that the mineworkers are getting. I think it needs to be addressed,” he said – despite the regular plea by mine bosses that their mines were only marginally profitable.
But, Zuma said: “The mining industry is absolutely important. This is an industry that has made South Africa in the main to be what it is. And it is an industry that must respect its workers.”
Zuma said he was also concerned about the poor conditions the miners lived in.
His comments on miners’ salaries comes after he initially declined to become involved in the debate shortly after the Marikana tragedy.
At that time miners’ union Amcu urged him to intervene.
Cape Argus