Numsa strike costing 300 million rand a day - CNBC Africa

Numsa strike costing 300 million rand a day

Southern Africa

by Trust Matsilele 0

The Numsa strike is costing South Africa an estimate of R300mln a day. PHOTO: Numsa

An estimated 10 500 companies are reported to have been affected by the National Union of metalworkers of South Africa (Numsa) strike.

(READ MORE: South Africa engineering strike latest blow to stickly economy)

“The figure could be higher if you consider that there are about 10 500 companies that are affected by the strike and that 220 000 workers are currently on strike,” Thabi Leoka, Renaissance Capital's South Africa economist told CNBC Africa.

Leoka noted that the country was operating in a period where the economy was underperforming with slow domestic and global demand coupled with pressure of labour tension and disruptions.

She noted that the impact of the strike will be seen on how long it lasts drawing parallels to the mining strike that was devastating.

Leoka said that the strike seemed more political partly due to the fights between Numsa and the ruling African National Congress (ANC).

(READ MORE: S.Africa's Numsa union says no longer sees ANC as its ally)

“What is worrying is that it’s not only a wage strike but it is an ideological difference which they now have with the ANC. The demands also involves many other things the companies may not be able to resolve,” noted Leoka.

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Matsi Modise, national executive director of the South Africa Black Entrepreneurs Forum augmented claims by Leoka noting that there were adverse direct repercussions to a strike like Numsa's.

Modise said small businesses were failing to stay afloat as there was no consistent income coming since cash flow was the life blood of business.

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