The Nelson Mandela Bay Business Chamber is pleased by the news that workers in the automotive components sector, who have been on strike for four weeks, will be returning to work today (Monday 7 October 2013).
The business community has expressed its deepest concerns at the length of the current strikes, as well as at the knock-on impact this has on all sectors of the economy in a time when South Africa should be pulling together to restore confidence post recession and building an image that is attractive to foreign direct investment. This is not only on the international platform, but also on the African continent, specifically with competing nations such as Nigeria and Rwanda. The loss of export numbers is especially problematic, as the motor industry lost in excess of 70000 units of production over the strike period.
It is not only the OEMs and their component manufacturers and service providers that have been affected, however. Strikes in the automotive sector have now set the tone for strikes in other sectors of the economy. This has a massive potential to heavily dampen the already limited growth rates that we are anticipating. Already, multinationals are considering and even stating that they are not willing to invest in the country in future. This is a point of extreme concern and a clarion call for strong and decisive leadership to ensure the stability of the South African economy. Thought, too, must be given to the negative international image this action portrays. As the Business Chamber we are striving to develop a competitive and sustainable city. We believe that we should not be trading in the long term sustainability and international competitiveness of our companies in the interest of short term gain.
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MyPE supports PE business: