Strike acton sends message of instability

The South African Shippers’ Council (SASC) has added its voice to growing concerns over the ongoing strike in the road freight industry. Beverley Waugh, SASC executive director, said the situation did not bode well for South African supply chains, the economy or long-term employment. “The road freight industry can ill afford this strike, taking into account the number of increased charges they already have to deal with, ranging from fuel to tolls,” she said. “The strike is undoubtedly impacting negatively on the economy. Not only does it make the country globally non competitive, it must also rock foreign investor confidence.” Thousands of workers from the road freight industry have been on strike for more than a week over wage increases for the 2013 and 2014 financial years. Strikers have been calling for a 12% increase across the board, while the Road Freight Employers’ Association (RFEA) has offered 8,5%. Marred by violence, the ongoing industrial action is intended to force employers to settle on the 12% demand. Waugh said the strike was not just making the country non competitive, it was also sending out a message of instability. “The road freight industry at the moment is being squeezed from all sides and the long-term impact of a prolonged strike will be job losses – something the economy can ill afford,” she said. “Also cargo owners whose goods are not being moved at present are operating in an environment where their markets are shrinking while their costs are also increasing. Organisations that have tried to continue with operations have been targeted in particular. This can only impact employment and the well-being and future of South Africans overall.” CAPTION Beverley Waugh ... rocking foreign investor confidence.