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South African Workers Stage One Day General Strike Against Rising Costs




South
African workers have been at the forefront of the struggle against the
impact of the crisis in capitalist globalization inside the country.
Originally uploaded by Pan-African News Wire File PhotosMass Cosatu strike grips South Africa

IMKE VAN HOORN AND SAPA 
JOHANNESBURG, SOUTH AFRICA 
Aug 06 2008 14:28 

Masses
of workers supported a national strike against rising living costs on
Wednesday, paralysing transport services and immobilising businesses.

The
Congress of South African Trade Unions's (Cosatu) countrywide strike
against rocketing electricity prices affected a range of services and
businesses, including buses, trains, taxis, schools, mining companies,
shops and factories.

"It is looking excellent," said Cosatu spokesperson Patrick Craven. "Johannesburg looks like a Sunday."

Tens
of thousands of protesters had gathered for marches in Pretoria,
Durban, Cape Town, Ladysmith, Klerksdorp, Polokwane and Witbank. Police
had been deployed in all these areas to keep the peace.

Gold
mining operations were affected substantially, with AngloGold Ashanti
saying no shafts were operating while Harmony and Gold Fields said its
operations were limited.

The strike has damaged South Africa's
image, Efficient Group economist Dawie Roodt said. "You can't put a
rand value on what it has done to our image. I believe the strike is
the second story on the BBC today."

He said that the strike hit
both the mines and the vehicle industry. "There's a difference between
a strike in manufacturing and a strike in services -- with
manufacturing, the impact will always be more severe," he said.

The
strike's consequences will probably be more severe than he anticipated,
Roodt said. However, he pointed out that South Africa has become used
to strikes and that the mines know how to handle labour actions. "They
have emergency plans."

He said the only good thing that could be
said for the one-day stoppage is that it provided an "emotional
release", adding: "People are suffering with the high food, fuel and
electricity prices -- being able to strike allows them to release their
frustrations."

Misunderstanding

However, Russell
Lamberti, economic strategist at the Econometrix consultancy, said the
one-day strike was unlikely to have a significant effect on the economy.

"Producers
will gain back what is lost today. When production levels return to
normal, they will work extra hard to make it up for the rest of the
month. Only after a one-week or two-week strike, you will see a
significant impact."

Lamberti said the strike showed a
misunderstanding of economic issues within the unions. "The unions are
striking against something they can't control. Food and fuel prices are
determined by global markets and not by policy. It's not a conspiracy
against the poor."

He added: "The only appropriate national
policy in the long term is to encourage and incentivise people to
produce more food and boost the agricultural economy. The global demand
for food is growing, especially with the industrialisation of China and
India, so make sure that you produce more food and be able to export
it." 

According to Lamberti, there is no really effective
short-term national-level solution to higher food prices. "If you put a
price cap on bread for example, you mess with the supply chain. You
will eventually face shortages of basic goods and commodities, as were
seen in communist countries."

"Now that the global economy is
becoming so interconnected, countries are learning that they don't have
as much policy autonomy as they thought. As a country you can choose to
isolate yourself to create more policy autonomy, but then you miss out
on the benefits and opportunities of free trade and rapidly growing
foreign markets, as well as the benefits of strong global economic
growth."

He said there is no easy way to deal with inflation.
The government's interest-rate policy has been appropriate, given the
severe inflation pressures -- albeit somewhat painful. 

"If you
don't respond with higher interest rates, you face potential runaway
inflation that hurts the poor even more in the long run." 

He said the average Cosatu member "doesn't really care that much about global economic dynamics".

"Many
Cosatu members feel marginalised and believe that government should
provide the solutions to their grievances. This, possibly, has
something to do with an apartheid mindset where it was the state that
played such a dominant role in denying many their economic
opportunities."

Strike may hinder coal production

Meanwhile,
the Chamber of Mines warned that the strike would hinder coal
production and ultimately affect electricity supply by Eskom.

Deputy communications adviser Jabu Maphalala said the protest against the rise in electricity prices was counter-productive.

"A
strike will impact on mining production, including coal production," he
said. "Earlier in the year, when there was an electricity crisis, part
of the problem Eskom had was the depletion of coal stockpiles, which
formed part of the discussions between labour, Eskom, the government
and the mining industry.

"But the strike today [Wednesday] by
the people will affect the production of coal-mining companies, which
ultimately has an impact on Eskom's success in generating electricity,"
said Maphalala.

De Beers says effect 'minimal'

Diamond
miner De Beers said that the impact of the strike on its diamond
production was "minimal". According to spokesperson Tom Tweedy,
"Diamond production on the five mines De Beers operates in South Africa
continued with there being minimal impact from today's stayaway."

The
protest was a protected industrial action in terms of section 77 of the
Labour Relations Act and was therefore respected by De Beers, he added.


Participation in the industrial action varied from mine to
mine, department to department and shift to shift in the various mines.

Based
on an average across the mines, 25% of employees in the bargaining unit
(being 2 612 employees of the 4 198 De Beers Consolidated Mines
employees in South Africa) did not attend work on Wednesday.

"As
one might expect to be the practice of the company and the union, the
rights of employees have been upheld and we are pleased to say we have
not received any report of intimidation on any of our mines," Tweedy
added.

De Beers operates mines in the Northern Cape, Free State
and Limpopo province. The five mines are Namaqualand, Kimberley,
Finsch, Voorspoed and Venetia Mine. 

Ministers 'should resign'

Cabinet
ministers who did nothing to prevent the current electricity crisis
should be forced to resign if workers lost their jobs as a result,
Cosatu general secretary Zwelinzima Vavi said in Cape Town.

Addressing
more than 3 000 demonstrators who had marched to Parliament in protest
against the power crisis and the rising cost of living, Vavi said it
was unfair to expect workers to pay for mistakes committed by others.

"Should
a single worker lose a job, the ministers will have to go. They are
making us pay for mistakes committed by other fellows," he said.

The
fact that the government had allowed Eskom to hike electricity prices
by 27% demonstrated that it did not have the interest of the poor at
heart, Vavi said. 

Workers have much to celebrate over the fact
that a majority of serving Cabinet ministers will not be coming back
after the expiry of their term next year. "The government ministers
have proven their inefficiency beyond reasonable doubt."

The
crowd gathered at Keizergracht Street from early morning, before
embarking on a 600m march to Parliament. Singing liberation struggle
songs and chanting anti-government slogans, the marchers responded with
excitement when Vavi bid farewell to President Thabo Mbeki, saying the
workers would not miss him. 

Crowd swells in Durban

By
midday, a protest march had swelled to about 4 000 people in Durban. As
they marched slowly along Pixley ka Seme Street carrying placards and
posters, helicopters circled and police posted themselves at
intersections along the route.

Along the way, marchers sang
songs about African National Congress president Jacob Zuma. The crowd
carried placards reading: "Down with high fuel prices".

Meanwhile,
the South African Clothing and Textile Workers' Union (Sactwu) by
midday reported that 93% of its members had not gone to work.

Andre
Kriel, the union's deputy general secretary, said: "In KwaZulu-Natal,
dozens of large factories including Lilanie Clothing (with more than 1
200 workers), Allwear (1 200 workers), Playtex (970 workers) and
Profortune (700 workers) reported full participation of workers in the
protest action."

He said the union was proud that it managed the
shutdown of the industry "in a manner that is sensitive to the needs
off its customers".

Gauteng action

In Johannesburg, metro police dispersed 2 000 protesters who were burning tyres on the Honeydew stretch of Beyers Naude Drive.

Spokesperson
Wayne Minnaar said police addressed the crowd who had gathered in
support of the Cosatu strike and asked them to disperse. 

The
crowd complied and police removed the burning tyres. "We are going to
monitor the situation the whole day because these protesters might
return," Minnaar said. 

Earlier on Wednesday the protesters
danced and sung in the road, blocking Beyers Naude Drive as far as
Peter Road in Honeydew, said Minnaar.

"Beyers Naude has since been opened and the traffic is flowing freely," he said.

In
Pretoria, a Cosatu delegation delivered a memorandum of grievances to
the Department of Minerals and Energy shortly before 1pm and said that
electricity tax should not be borne by the poor. 

The
memorandum -- which was received by departmental spokesperson Bheki
Khumalo -- called on the government to invest in power generation and
the launch of an energy-efficiency campaign.

Khumalo gave his
apologies to the protesters on behalf of the Minister of Minerals and
Energy, Buyelwa Sonjica, who was not available. He said Sonjica was in
the Democratic Republic of Congo to discuss electricity issues between
the two countries. 

The protesters, wearing red T-shirts and
some holding sticks, then continued peacefully down Visagie Street
towards the Union Buildings while a police helicopter circled overhead.


Bus and train services in Gauteng came to a complete halt in
the morning. "There are no trains running in Gauteng, obviously due to
no staff," said national Metrorail spokesperson Sibusiso Ngomane.

"We
will review the situation at 2pm and we might be able to run some
trains in the afternoon subject to staff availability," he added.

Metrorail was running services on a "very limited scale" in the rest of the country.

"There
are no buses running," Johannesburg City spokesperson Nthatisi
Modingoane said. "Normally we try to make sure that we have a skeleton
staff in the morning, but today the drivers did not show up."

Effects felt countrywide

Listed retailer Foschini was hit by the strike, spokesperson Doug Murray confirmed on Wednesday. 

"We're
still trying to establish how many branches have been closed," Murray
said. "The closures are mainly in the Johannesburg CBD, Pretoria and
Durban."

Stores in the Edcon Group were also affected, said a spokesperson who did not wish to be named.

Foschini stores include @home, American Swiss, Markham and Totalsports, while Edcon stores include Edgars, Jet and CNA. 

Source: Mail & Guardian Online
Web Address: http://www.mg.co.za/article/2008-08-06-mass-cosatu-strike-grips-south-africa 


Strike hurts mining, factories

JAMES MACHARIA 
JOHANNESBURG, SOUTH AFRICA 
Aug 06 2008 12:11 

South
Africa's giant mining companies were badly hit by a strike on Wednesday
over rising power, food and fuel prices that threatened to bring the
continent's biggest economy to a standstill.

As global mining
leaders such as Anglo Platinum, the world's top producer of the
precious metal, counted their losses, powerful unions prepared for
marches across the country.

Mines, refineries, car makers,
textile factories, businesses and construction of stadiums meant for
the 2010 Soccer World Cup could all be affected. Workers and students
stayed at home after public transport was disrupted.

Analysts
say a complete shutdown of the economy could spook foreign investors
and further dent slowing growth, seen at about 3% this year from an
average 5% over the past four years.

"Workers have not shown up
for early shifts," said Lesiba Seshoka, spokesperson for the 300
000-strong National Union of Mineworkers.

The nearly two
million-strong Congress of South African Trade Unions (Cosatu), an ally
of the African National Congress, says the action was a warning to
employers not to sack workers because of a downturn in profits due to a
power crisis.

In the mining sector -- backbone of the economy --
workers are particularly fearful of job cuts after a five-day power cut
in January and the rationing of electricity to mines slashed output and
earnings in this top precious metals producer.

"We are adamant
that workers should not be asked to pay for government's failure to
invest in electricity," Cosatu's spokesperson Patrick Craven said.

Political battle

Cosatu
has previously said it also wants to fight President Thabo Mbeki's
market-friendly and pro-business stance, and has urged the government
to subsidise essential commodities while demanding higher wages for
workers.

Unions are much closer to ruling party leader Jacob
Zuma, who is the frontrunner to succeed Mbeki as president next year.
Some investors fear Zuma would mean a shift to the left.

Angloplat said its biggest mine, Rustenburg, had been hit by 30% absenteeism due to the strike.

Harmony,
the world's fifth biggest gold producer, said on Wednesday that all its
South African mines had been affected by the protest, and it expected
to lose up to 135kg of gold.

Car maker Volkswagen's South
African unit said it would have no production on Wednesday as a result
of the strike, but there was no impact at the country's largest oil
refinery in Durban, officials said.

Metrorail suspended all trains in Gauteng as workers failed to show up at work.

The
strike is supporting a recovery in world platinum prices , which have
slipped sharply in recent days, though its impact has been muted by
ongoing fears over the demand outlook.

South African markets shrugged off the strike and the Johannesburg's bourse's blue-chip index soared 2%.

The
rand was slightly weaker against the dollar, but analysts said the move
was merely an extension of a long-awaited correction after a seven-week
rally.

"I don't think it is specifically due to the strike, it
is part of the correction that started late on Monday," Citibank
sub-Saharan Africa specialist Leon Myburgh said.

Threat of vandalism

Shop
owners in Johannesburg's central business district closed their doors
on Wednesday morning after protesters threatened to vandalise their
property.

A South African Press Association reporter on the
scene said about 100 protesters were wandering through the streets of
Johannesburg, even though there was no march planned in the city.

Diskom
shop attendant Sevha Mahori (39) said a group of protesters tried to
break into the shop in the morning, threatening to vandalise its goods
if its workers did not participate in the strike action.

"We are trying to call our boss to find out of we should go home and wait for the strike to end," he said.

Slow start to Free State protest

Workers
were seen gathering in Thabong, Welkom, in the Free State on Wednesday
morning for a protest march. About 1 500 workers gathered while waiting
for more workers to arrive.

In Welkom the protesters were
expected to march from the Phillip Smith Hall in Thabong to the
Matjhabeng Municipality buildings in town. In Bloemfontein, the
national call for protest action seemed to have had little or no effect
as transport and business structures ran normally during Wednesday
morning. 

In other smaller centres in the province there was no visible indication of any protests.

Commuters stranded

Commuters in Johannesburg were left stranded on Wednesday morning as bus and taxi drivers participated in the stayaway.

"As we speak, there are no buses running," Johannesburg city spokesperson Nthatisi Modingoane said.

"Normally
we try to make sure that we have a skeleton staff in the morning, but
today the drivers did not show up. We are urging commuters to try and
arrange an alternative mode of transportation. We apologise for the
inconvenience caused," he said.

He said he did not see many taxis running either as he drove to work.

A Sapa reporter at the Noord Street taxi rank in the Johannesburg city centre said about 500 commuters had been left stranded.

Taxi drivers said the rising costs of petrol are affecting their businesses.

"The
association spoke about this and they agreed that all the taxis at
Noord taxi rank would not be working today," said taxi driver Moses
Mosemola, who was sitting on the pavement and reading a newspaper.

"We received a warning about not working today," he added, but denied that he had been intimidated by anyone.

Some
of the frustrated commuters had travelled from Pretoria and Midrand
early in the morning when taxis were still running, but now they cannot
commute to their destinations in Johannesburg.

Malebo Hlase, from Pretoria, was scheduled to write her learner's test for her driving licence in Soweto on Wednesday.

"But I found no taxis in Johannesburg and now I can't write my learners," an upset Hlase said.

Another
commuter, Brendon Smith, said Cosatu should have arranged alternative
transport for those who did not want to participate in the stayaway.

"This
is absurd. If they stop production everyone is going to face the
repercussions and the economy is going to drop," said Smith.

Taxi
drivers did not want to say whether they would start working later in
the day, but about 50 taxis were parked at the rank and the ticket box
was open.

Electrical engineering student Samiksha Rampersadh
(23) who lives in Linden and normally takes a bus to Wits University,
said she would not be able to attend her lectures on Wednesday morning.

"There
are no buses and sometimes, when you are desperate for transport, you
can take a taxi. But there are no taxis either this morning. I am
missing all my lectures," she said.

'Biggest strike'

Meanwhile,
the South African Democratic Teachers Union (SADTU) has also called on
its 235 000 members to "fully support" the national strike.

"Teachers
suffer as a result of increased prices -- like all other workers. We
are a part of Cosatu and fully in support of the action led by the
federation," said Sadtu general secretary, Thulas Nxesi.

In
Gauteng, Cosatu members would gather at the Pretoria City Hall on
Visagie Street at 10am. They would then march to offices of the
Department of Minerals and Energy Affairs and thereafter to the Union
Buildings.

"Workers can rest assured that all those who
participate in the strike will be protected by law except for those
performing genuinely essential services," said the union federation.

On
rising interest rates, Cosatu's leadership said the government should
find other ways to deal with inflation, which has a negative effect on
economic growth. - Reuters, Sapa 

Source: Mail & Guardian Online
Web Address: http://www.mg.co.za/article/2008-08-06-strike-hurts-mining-factories
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