/ 30 March 2004

Strike action on the wane

The number of man days lost in South Africa due to strike action fell from 945 000 in 2002 to 700 000 in 2003, according to labour analyst’s Andrew Levy strike report for 2003.

The 2001 figure stood at 1,25-million. The record annual low of 500 000 man days was recorded in 2000 and the highest figure to date of 3,9-million was noted in 1994.

The report says strike action in the country has levelled off significantly since the late 1980s and early 1990s when large-scale and often unprotected strike action took place.

It attributes the decline to amendments made to the Labour Relations Act of 1995.

“The attendant improvement in dispute-resolution procedures has led to a greater predictability around the bargaining process and a sustained reduction in incidence of strike action.

“It has also codified a number of issues such as retrenchments and dismissals, which were previously major strike triggers.

“At the same time, the majority of unions have adopted a mature and consistent approach at the wage bargaining table and there are less strikes over wages, although it is still the major strike trigger,” the report said.

Jackie Kelly, Levy’s general manager, said the lower level of strike activity was also attributed to the fact that a large percentage of the workforce was covered by long-term agreements ranging from two to three years.

“These agreements ensure a period of stability insofar as wage stoppages are concerned, which filters through to other sectors. They can be found in the automobile, metal and engineering, mining and public service sectors,” said Kelly.

The report says a major strike trigger in 2003 was wages, accounting for 59,2% of man days lost and 76,4% of the number of strikes, followed by worker-driven grievances accounting for 40,7% of man days lost and 23,5% of the number of strikes.

Countrywide strikes accounted for 56% of man days lost, followed by strikes in Gauteng (40%), the Eastern Cape (3%) and other provinces combined (1%).

The report says the majority of days were lost in the retail sector at 43% followed by mining (27%), metal manufacturing (14,5%), building and construction (8,1%) and transport (3%).

The average wage settlement for 2003 rose to 8,9% at the end of December last year, from 8% at the end of December in 2002.

Wage settlements have moved steadily upward for the past two years, mainly due to the sudden rise in inflation during 2002 as a result of extraneous global factors out of the control of local market.

“This unexpected rise put additional pressure on the parties at the bargaining table as increases granted in 2001 and at the beginning of 2002 did not adequately cover the increased costs incurred by the workforce on items such as food and transport,” notes the report.