Economy hit by bus strike
Thousands left stranded as Metrorail can’t pick up slack
THE economy is likely to take a hit as the national bus strike intensifies, affecting productivity, according to the Cape Chamber of Commerce and Industry.
Hundreds of thousands of people have been left stranded by the bus strike, with Metrorail’s ailing network unable to pick up the slack.
Chamber president Janine Myburgh said thousands of people are arriving late for work and absenteeism has increased, leading to productivity going down, which will add to huge losses.
“If too many staff are late or absent, production lines cannot be started. That means orders can be late and customers can be lost. We live in a competitive world and there are always other suppliers willing to take up the slack. In factories, for instance, if too many staff are absent then production lines cannot be started.
“A 12% pay rise… will mean an increase of more than double the inflation rate. Bus fares will go up and the people that will be hurt most will be the passengers,” said Myburgh.
Mayco member for transport and urban development Brett Herron agreed with Myburgh and said the strike was already impacting the national economy and “we will no doubt feel and see the impact once it’s been assessed”.
“There will be an impact on the national economy. Under more usual circumstances we would rely on Metrorail to assist us in mitigating the impact… (however) Metrorail has its own capacity constraints and is not able to meet its own demand,” Herron said.
“The taxi industry has been absorbing much of the travel demand. MyCiTi service remains suspended as it’s still unclear when the nationwide strike action will come to an end. Once again, I ask that employers exercise patience and flexibility as their employees will most definitely struggle to get to their jobs,” he said.
The SA Transport and Allied Workers Union, National Union of Metalworkers of SA, Transport and Omnibus Workers’ Union and Tirisano Transport Workers Union released a statement calling for the strike to be intensified until employers make an offer they could accept.
The unions, who demanded a salary increase of 12% among their core demands, were offered an 8% increase in the first year, and 8.5% in the second year on condition that they drop their other core demands that include dual driver payment, insourcing and night-shift pay.
The unions proposed that the increase be made 9.5% in the first year and 9% in the second year, but this was rejected and resulted in the call to intensify the strike.
“We are calling on all our progressive communities to be patient and to fully support this just strike and the struggle of workers for a living wage,” the unions said in a group statement.
“This strike is affecting our communities negatively, and the rest of the economy. We are calling on government – in particular the Department of Transport and the Department of Labour – to intervene in the interest of workers to ensure that a settlement is found.”