The National Union of Metalworkers of SA (Numsa) is considering a strike to stop big vehicle and steel producers retrenching workers because of the rand’s strength.
Spokesperson Dumisa Ntuli said in a statement on Wednesday that the union feared that the companies Dorbyl and Tiger Wheels may cut hundreds of jobs in automotive parts manufacturing.
”Some steel producers have shown the same intentions. They argue that the strong rand means our export goods will become more expensive. The demand in the global market will slack badly, leading to companies shutting down or restructuring, causing job losses.”
Any industrial action would follow the filing of a ”section 77” through the Congress of SA Trade Unions (Cosatu).
The union did not accept that the strength of the rand had to affect employment.
Rather, it was part of the business cycle. Companies had to adapt to currency fluctuations and different conditions, Ntuli said.
A Numsa study of the steel, engineering and automotive component sector last year revealed that the strength of the currency was not an impediment to jobs.
Therefore, a strike would not be directed at the government or the SA Reserve Bank ”but against companies that want to shed jobs”.
Ntuli said business always looked for ”super profits”.
”There is an expectations problem. These expectations within the business people have turned out to be incompatible with subsequent reality of the South African economy.”
Ntuli said big business was unwilling to admit that increased offshore investment and global integration was a reason for low investment and underdevelopment.
”Instead, they choose to use the strong rand as an easy excuse for job losses and lower export output”. – Sapa