The number of strikes in South African industry had reached a 10-year high and analysts warned still more strikes were imminent, the Reserve Bank said on Thursday.
South Africa’s largest labor federation, The Congress of South African Trade Unions, has held its annual convention this week and is looking for ways to exert more influence on the nation’s economic policy.
The bank said in its report on Thursday that the number of working days lost from strikes rose from about 700 000 in the first half of 2005 to 1,6-million in the first half of 2006, the highest figure in 10 years.
”Unions are flexing their muscle and we can expect it to last,” said Steven Friedman, a senior researcher with the Centre for Policy Studies in Johannesburg.
”It is a sign of economic growth. Although there is labour surplus, the labour market has tightened; profit margins are up and workers think they can get a better deal,” he said.
Cosatu, a federation with 1,8-million members, has been a key supporter of former deputy president Jacob Zuma’s campaign to become the next president when President Thabo Mbeki’s term expires in 2009.
Zuma said he supports the government’s current economic policy, but the union believes he would give workers — instead of business — more influence on policy.
On Thursday, the federation’s 3 000 delegates called for Zuma to be reinstated as deputy president after a judge on Wednesday dismissed corruption charges against him. The ruling, however, did not address the merits of the evidence and the prosecution is free to file new charges.
According to a report, compiled by a labour research body before the federation meeting, there were 102 strikes last year, mostly over wages.
”We have entered a phase of intense and prolonged strikes,” the report said.
The report said membership in Cosatu’s 21 affiliated unions grew by 4% since 2003, reversing earlier losses and that the federation ”remains a significant and powerful force.”
South Africa has one of the most progressive sets of labour laws on the continent, but it suffers from massive unemployment some analysts put as high as 40%.
While labour have made some gains like the recent introduction of restrictions on Chinese textile imports, there continues to be strong opposition to the government’s conservative economic policy which has tightened social spending.
Friedman said following their backing of Zuma, the strengthened federation may ”be looking for more sustainable influence over economic policy and to defend gains they have made in the labour market.”
However, he said the federation needed to mobilise the large numbers of unorganised workers in the casual and informal sectors.
”If they want a presence in the national and political debate they need to be the voice of the really poor and exploited,” he said.
Economist Mike Schussler agreed that the strike activity was linked to growth in the economy.
He said workers had received good salary increases and there had been job creation.
”South Africans were getting richer quicker but many people feel left behind,” he said.
Schussler said an increase in the number of strikes could be expected as political tensions play themselves out.
”Cosatu thinks they can not just have political muscle but economic muscle as well,” he said. – Sapa-AP