Warning on the effect of violent strikes to the economy

01 Feb 2016 | Admin Author

The Cabinet feels that the spate of illegal and violent strikes is not helping South Africa's image internationally.

Acting government spokesperson Phumla Williams said at a media briefing in Cape Town that the lawlessness was "polluting" the otherwise democratic right of workers to strike.

She was speaking following the executive's regular meeting.

The past two months have been characterised by violent strikes in the mining and transport sector.

There have been almost daily incidents of intimidation, arson and incidents of protesters throwing stones at trucks.

Meanwhile Bankserv Africa has warned that the current spate of illegal and unprotected strikes may be a game-changer for South Africa's economy.

It says not only is the budget deficit now likely to be higher, but business confidence is likely to wane as the medium-term effect of strikes makes life difficult.

The monthly Bankserv Economic Transaction Index for October, which was released on Thursday, showed the economy was stagnating.