Lo and behold! The strike is over but at what cost?

By Staff Writer
Transnet finally reached a deal with the striking workers on Thursday to end a long running wage dispute - and with the World Cup just around the corner, the timing could not have been sweeter.

The transport strike has been on the go for three weeks and it has cost South Africa's economy billions and has also had an effect on those who rely on the country for export materials.

South Africa exports tons of metals, cars, fruit and wine to places like Europe and other neighbouring and it's expected that the loss in production and sales sits at about R7 billion.

The South African Transport and Allied Workers Union (Satawu) said that the majority of its members had agreed to Transnet's new offer - which is made up off an one-off one percent payment and an 11 percent wage increase.

"The offer has been accepted ... and the understanding is that the workers will start going back to work tomorrow," Robert Mashego, Deputy President at Satawu, told Reuters on Thursday.

The strikes came under vast criticism from both economists and the central bank - both claiming that the unions have sinister motives by striking prior to the World Cup, and there were claims that the World Cup could be used as leverage to try to push increases 5.1 percent past inflation.

"We are seeing continued upside pressures on wages in both the public and private sectors," said Peter Attard Montalto, emerging market economist at Nomura International.

"Wage settlements are still unanchored from inflation and will cause a range of second-round inflation effects through the second half of the year ... leading ultimately to rate hikes."

The backlogged caused by the strike will take about a month to clear with the mining, transport, manufacturing and producers of perishable goods being hit the hardest.

Expert analysts believe that the strike will have long-lasting effects on the country's exports with South Africa losing export contracts to places like Brazil and India and job cuts could follow as a result.

Recent Articles

Featured Applying for a home loan? Consider the repo rate

When you apply for a home loan, one of your top priorities should be to secure a low interest rate. In order to achieve this, you need to be familiar with the repo rate. We find out more about this.

Effective financial planning as a single parent

As a single mom or dad, it can be challenging to keep up with the ever-increasing expenses of raising a child. We have a look at the importance of setting up a budget as a single parent.

How your credit score impacts your insurance – and vice versa

Since insurance is paid in advance, it may seem unrelated to your credit score. However, these two are in fact linked to one another. We find out why insurers look at your credit score.

Should you share finances with your cohabiting partner?

When you and your partner decide to move in together, you need to work out whether it would be better to share your finances, or to continue to operate separately.

Deals

Get a FREE flight ticket with Hotel Sky

Price: From R5,200
When: Until 31 January 2022
Where: Johannesburg and Cape Town

Voucher for 2 special at Bakwena Day Spa

Price: From R1,798
When: Until 31 January 2022
Where: Centurion, Hartbeespoort and Stellenbosch

Spier Hotel Summer Special

Price: Available on request
When: Until 31 March 2022
Where: Stellenbosch


Latest Guide

Guide to debt rehabilitation solutions