Speech at the launch of the Industrial Action Report, 2013 by Minister of Labour Mildred Oliphant

1. Introduction

Today, I am launching the findings of the strike incidents 2013. The Department of Labour (DoL) has continually published an analysis of the strike incidents in the country on an annual basis. This is in line with the national and international requirements. The strikes information analysed is based on the information supplied by the employers in the Labour Relations Act Forms 9.2 after the strike incident ended in a particular work place.

The report that is launched today resulted from the strike analysis in the last 12 months of 2013. The findings do not attempt to report extensively on the current industrial disputes in the country in 2014. This is because some of strikes that my department has identified have not being concluded and information are not yet processed in the department strike database. However, a five year analysis from 2009 to 2013 is provided to show the impact of industrial action in the labour market and in the economy in general.

2. Key findings on strikes, 2013

It is my pleasure to report on the following key strike results as covered in the Annual Action report 2013:

  • We reported an increase in strike incidents from 99 strikes in 2012 to 114 strikes in 2013. The resultant effect was that a total of R6.7 billion in wages was lost due to the participation of workers in strikes as compared to the R6.6 billion in 2012.
  • While an increase in the number of strike was recorded, the working days lost between 2012 (3 309 884 strikes) and 2013 (1 847 006 strikes) decreased by 44.2%.
  • As it has been the trend in the past, wages was still the main reason for workers to embark on strikes action at 76.6% working days lost in 2013. In other words, workers are still seeking for more money to curb their socio-economic needs. It is shown that the cost of living keeps going up because multiple factors from domestic and international market. Indeed, workers will probably continue to strive for decent wages as it is framed in the Decent Work Country programme.
  • On average, 22.3% of work stoppages lasted from 11 to 20 days in 2012 as compared to 2013 where 40.8% of work stoppages lasted from 11 to 20 days, the report has shown. However, in the mining industry, union rivalries between Association of Mineworkers and Construction Union (AMCU) and National Union of Mineworkers (NUM) continued to stretch the wage negotiations and also fuel the strikes and stall productions.
  • In all cases, wage agreements reached were below the initial demand followed by other negative employment trend such as job losses in the mining sector in 2013.
  • By industry, Community, social; and personal services industry was mostly affected by strike incidents in 2012 and 2013 followed by mining and manufacturing. Few strikes were recorded in Finance and utilities industries in both periods.
  • The report shows that out of 114 strikes in 2013, 42% of strike incidents as against 58% were protected strikes. However, in 2012 the DoL recorded more protected strikes at 54.5% of 99 strikes in a year.
  • By Trade Unions, the findings shows that 25.2% of the total workdays lost in 2013 (1 847 006) were recorded in South African Transport and Allied Workers Union (SATAWU) followed by NUM (17.4%) and NUMSA (16.3%). Unlike in 2012 where NUM and AMCU had more member participation in strike. This might imply that that more workers who were involved in strike came from these unions.
  • By province, the report indicates that North West (48.5%) and Gauteng (41.5%) were the two provinces which were mostly affected regarding the wages lost in the country due to strikes in 2013.
  • On average, South Africa recorded the highest annual average of 292.6 of working days lost per 1 000 workers during the period from 2005-2009. It was highest as compared to other international countries over the same period.

Way Forward

To address the issue of reducing strikes incidents with regards to wage demands the Labour Minister alluded that: “possibilities of increasing minimum wages to address poverty and inequality and to expand to expand provision for retirement savings for low income workers will come sharp focus in the future”.

The latest report, noted Labour Minister’s concerns to understanding the logic of pursuing strike action to the point where it damages workers’ interests. Either way, South Africa needs to find a solution for the seemingly failing bargaining structure. Government, unions and business have an important role to play in order to maintain a stable labour force and fair labour practices that will attract investors and inspire economic growth in the long run.

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