Unions must see bigger picture
Money makes the world go round. That is not a cynical statement, nor is it an ode to the magical powers of cash. It is a statement that appreciates the economy – both local and international – is fundamental to life as we know it. The World Bank this week said SA’s economy is growing too slowly to cut poverty. There, in black and white, it is saying better growth is needed to improve the lot of the millions who live unacceptably difficult lives.
Growth in the economy comes down to many different things and cannot be described in a few words, but just some of the fundamentals include labour stability, political certainty, sufficient electricity and the stamping out of corruption. On all four counts South Africa is woefully failing, so it is no surprise growth forecasts are below 2% and talk of a technical recession continues. If the World Bank’s views are anything to go by, this means unemployment and poverty have no chance of being beaten.
The coal strike threatens to destabilise a fragile power-supply system, even though Eskom claims to have reserves for a month. SA is no stranger to strikes stretching beyond four weeks, which would be a disaster for Eskom and the economy. The Association of Mineworkers and Construction Union (Amcu) has dug its heels in and, after a mass meeting in the next few days, will announce whether or not to take gold miners on a strike, threatening to trip up a fragile industry already buckling from weak commodity prices. The interests of workers can never be steamrolled, they deserve to be represented and to state their case for fair working conditions and compensation.
However, in times of crisis – and a whisker above recession in one of the most unequal societies in the world could well be near to a crisis – unions have to think about the bigger picture. The platinum strike last year had a material effect on the country’s poor performance. If the coal strike digs in and Amcu play hardball with gold mines, SA could well go through the same rough seas again.
The spectre of corruption is ever-present and contradicting statements on various issues, such as mines and land, provide enough uncertainty to give investors the jitters. And while foreign investors are often spoken of as if they are here only to pillage our wealth, it is handy to remember: money makes the world go round.