Economist warn that national shutdown poses further economic risk

By Tauhierah Salie

Economists are warning that a national shutdown planned by trade unions on Wednesday, will likely damage the economy further.

Congress of South African Trade Unions (Cosatu) and South African Federation of Trade Unions’ (Saftu) are among several unions partaking in rallies across the country to voice frustration over the rising cost of living, power cuts, high fuel prices and unemployment.

Cosatu said it is demanding a sustainable rail service for the working class, and for government and the private sector to tackle the socio-economic challenges being faced by South Africans. According to Western Cape spokesperson Malvern de Bruyn, PRASA is yet to respond to a memorandum handed over in 2020, a currently unreliable service on which thousands of citizens rely on to get to work.

Similarly, Saftu and its allies are taking to the street to “defend and advance the socio-economic interests” of the working class and establishment of a permanent basic income grant. SAFTU’s Trevor Shaku has suggested the grant be set at R1 500, in light of the current unemployment rate and standard of living.

Other unions have expressed support for the implementation of wealth tax and major investments to boost economic growth and create jobs. SANTACO has declined involvement.

Economy

Speaking to VOC Breakfast on Tuesday,  Political analyst from North West University, Professor Andre Duvenage, was of the opinion that trade unions are more of a risk to the country than they are of benefit, and that the protest is detrimental to the economy:

“What we have are trade unions losing support because of high unemployment rates- people that are not contributing to economic growth, stability and development. Tomorrow (Wednesday) there will be a strike that is going to be extremely negative for our economy. An economy that is already in trouble, that has stagnant over the last years. Maybe with the exception of Solidarity, I think trade unions is part of the problem and not part of the solution,” said Duvenage.

“They are divided in many ways and are becoming more radical and the stakes are becoming lower all the time. It’s by no means a healthy situation. They want this shutdown tomorrow (but) I honestly don’t think we are going to see too much. It’s probably going to be a bit more than a storm in a teacup,” he added.

“You talk about no work, no pay. The problem is also that when these people are going on strike, they are intimidating other people, destroying property, and becoming violent. It’s coming at a huge cost,” lamented the Professor.

According to Duvenhage, the tri-apartheid alliance further complicates tensions, in that there is an urgent need for ‘re-configuration’:

“There’s not (any) alignment and it has a lot to do with what is going on in the ANC, especially toward the buildup of the National Conference at the end of the year. There’s a lot of dynamics (and) unpredictability. It seems as if everyone would like to get a claim on a position in future.”

“What is also interesting is Mr (President Cyril) Ramaphosa saying over the weekend that Zondo commission was a commission and its not necessary that the findings will be implemented. If that is the case, we are in real trouble as far as our constitutional democracy and the rule of law principal is concerned,” he added.

Prof. Duvenhage said that the ANC in the Western Cape is in a peculiar position, where another conference may not even take place:

“They, in many ways, define business as their number one enemy. Now how can you create an enemy and expect the enemy to support you?” questioned Duvenage. “It is clearly that business, and particularly private owned business, is against the ideology of the ANC in terms of the National democratic revolution.”

Listen to the full conversation here.

Western Cape

The City of Cape Town meanwhile noted that while local officials will be on high alert, SAPS remains the “lead agency on matters relating to public order policing.” The City’s Safety and Security Directorate spokesperson JP Smith said enforcement services will be deployed to support SAPS and manage traffic during the demonstrations.

According to the City, two demonstrations will occur on Wednesday morning. This includes a 100- person picket by COSATU outside the PRASA Building in the CBD; as well as a protest by SAFTU from 10am, which is expected to host 1 000 members proceeding from Hanover Street in the CBD, to the Civic Centre, Provincial Legislature and Parliament.

“The public is advised to follow the City’s social media channels to monitor for any updates, or local media platforms. Should you witness any disruptions or imminent threats, please call the City’s Public Emergency Communication Centre by dialing 021 480 7700 from a cellphone or 107 from a landline,” said Smith.

Smith further urged organizers to ensure the demonstration is peaceful, pointing to the panic created by social media posts describing the protest as a ‘shutdown’.

“We appeal to the organisers of the demonstrations to ensure that their members adhere to the conditions set out, and to ensure that proceedings are peaceful. Our enforcement services will also be on alert for any other possible disruptions in other parts of the city,” he added.

“While some of the issues referenced in these shutdown notices are legitimate, the approach of creating blockades and disruptions harms the most vulnerable communities and does not contribute to addressing the problems being referenced as the cause of the protest,” emphasized Smith.

 

Below are the details of SAFTU’s planned landmarks in six provinces confirmed to take part from 10am:

∎ Limpopo
The march is taking place in Polokwane. People will assemble at SABC Park in Polokwane at 8am, and start marching to the Office of the Premier

∎ Mpumalanga
The march is taking place in Witbank. Marchers will assemble at Broadway in Emalahleni at 9am, and start marching to Eskom Park

∎ Gauteng
The march is taking place in Pretoria. The assembly point is at Burgers Park in Pretoria at 6am to start marching to the Union Buildings

∎ Free State
The march is taking place in Bloemfontein. People will assemble from 7am at Batho Location Hall in Mangaung, and start marching to the Office of the Premier (OR Tambo Building)

∎ Eastern Cape
The march is taking place in Bisho. The assembly point is at the at Fort Hare Grounds at 8am to start marching to the Bisho Legislature

∎ Western Cape
The march is taking place in Cape Town. People will assemble at Keizersgracht in Cape Town at 8am, and start marching to the City of Cape Town, the Department of Mineral Resources and Energy, as well as the Western Cape Legislature and Parliament

 

 

Picture of Tauhierah Salie
Tauhierah Salie

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