Strikes in numbers

By Jan du Toit

Traditionally in the recent past employers referred to a certain time of the year as the strike season during which strikes peaked. Since August 2012 this however drastically changed and protests against poor service delivery or low wages seems to be at the order of the day.

The impact of the current industrial action in the mining sector is costing the economy around R400-million per day, resulting in widespread retrenchments. Add on top of this the high fuel price and e-tolls, then the outlook for employers and employees in 2014 seem bleak. In 2012 the monetary impact of strikes amounted to R6 666 103 906 compared to “only” R1 073 109 003 in 2011. We can only speculate as to what the 2013 and 2014 figures will look like?

Following statistics released by Adcorp regarding January’s 10 year record high 36 290 retrenchments, AMCU threatened to bring the mining sector to its knees if the Registrar of the Department of Labour deregisters the trade union. This is in response to unconfirmed reports that the Department is in the process of deregistering the trade union.

The question that must now be answered is whether we can afford further prolonged industrial action in South Africa. Trade Unions will argue that employees have a constitutional right to participate in protected industrial action whilst employers and economists will warn about the dire consequences. Maybe one should consider the figures released by the Department of Labour regarding strikes in its Annual Industrial Action Report for 2012.

Key features of industrial actions in 2012 include the following:

• The country’s total working days lost in 2012 were estimated at 3 309 884 where 241 391 workers participated.
• Across all economic sectors; 57.5% of the total workers involved in the labour unrest were from the Mining sector where a wave of wildcat actions was observed.
• As absence from work does affect productivity, in monetary terms the country lost about R6.7 billion in wages during the labour unrest in 2012 as compared to R1.1 billion in wages in 2011. This is another crisis while the country is grappling to sustain the slow economic growth after the 2008 economic recession. Furthermore,
• South Africa experienced violent, bloody and deadly industrial actions in the mining, transport and agricultural industries during the last three months of 2012. Out of 99 strikes processed within the Department, 45 strikes were unprotected.
• The median-wage settlement rate as reported by Labour Research Services varied between 6.9% and 10% way above the level of inflation in South Africa.
• The working days lost per 1 000 working South Africans was estimated at 244 in 2012 as compared to 208 in 2011. In other words, for every 1 000 employees in South Africa in 2012, about 244 working days were lost due to work stoppages.
• Working days lost by industry were mostly prominent in the mining sector (82.4%), followed by the manufacturing (5.7%), community (4.1%) and agriculture (3.7%) sectors in 2012.
• Wages, bonus and other compensation still remain to be the main reasons for work stoppages in South Africa, totalling 81.5%.
• In 2012, most workers who were involved in labour unrest were from NUM. NUM strikes in 2012 were supported by miners at Modikwa Platinum, Westdawn Investment, Anglo Gold Ashanti, employees at Benicon Opencast Mining, Samancor Eastern Chrome and Eskom.

Work stoppages affect any company of any size, be it large, medium or small. Most small-sized establishments experienced labour unrest in both 2011 and 2012. The number of establishments affected by strikes with less than 49 employees decreased, from 33.3% in 2011 to 26.2% in 2012. These establishments are regarded as small companies. This is an indication that not all strikes emanates from large establishments. However, there was an increase in medium and large sized firms. Firms that employ 500-900 and 1 000 and more employees, recorded an increase of 11.5% and 15.6% respectively in 2012. This included the freight services and the mining sectors where more than a thousand miners embarked on strikes.

According to the Department of Labour the South African Government should develop an appropriate response. Thus, it is expected that the Judicial Commission of Inquiry on the Marikana tragedy will provide some perspective on how to overcome an environment which is conducive to the creation of tension, disunity among its employees and labour unrest. In addition, the National Development Plan (NDP) recommended that the CCMA and the Labour Court be strengthened in dispute resolution and support trade unions and employers in managing shop-floor relations.

The violent strike events in the last few months of 2012 demonstrated a turning point in the industrial relations system. According to the Department of Labour it has therefore became imperative for organisations, collective bargaining and labour to look at policies which will make human rights and social compliance part of their strategies.

For more information contact [email protected]