Another petrol strike in pipeline

Warning on growth outlook

AS ANOTHER strike in the petroleum sector loomed, economists yesterday warned that the ongoing industrial action affecting fuel deliveries would begin to eat into the country’s growth prospects if it carried on for longer.

The National Union of Metalworkers of SA (Numsa) this week threw its weight behind the ongoing strike by workers affiliated to the Chemical, Energy, Paper, Printing, Wood and Allied Workers’ Union (Ceppwawu), which has affected fuel deliveries from oil refineries and oil depots.

Mediation talks

Numsa’s general secretary, Irvin Jim, said its members at petrol service stations could also go on strike if mediation talks in the Motor Bargaining Council failed.

“If the bosses who represent garage employers fail to make an offer, Numsa will embark on a strike action in pursuit of our members’ demands and in full support of fuel refineries,” Jim said.

Numsa’s warning comes as the Ceppwawu strike enters its third week.

The union’s members went on strike on July 28 after a deadlock in the annual wage negotiations with the National Petroleum Employers Association (NPEA) over a 9 percent increase for a single year agreement.

NPEA has offered a 7 percent increase in the first year and an increase linked to the April 2017 consumer price index plus 1.5 percent in year two.

Economists warned that the protracted industrial actions in the petroleum sector would hamper South Africa’s growth, which the SA Reserve Bank last month cut to zero for the remainder of the year.

SA Institute of Race Relations’ chief economist, Ian Cruickshanks, said that a longer strike would affect all the sectors of the economy and would worsen the already grim economic prospects.

Cruickshanks said the strike would contribute to job losses, reduced consumer spending and low business confidence.

‘Numsa will… strike in pursuit of our members’ demands and in full support of fuel refineries.’

“So far the impact has been limited, with just a few service stations without fuel. But it is a worrying situation.

“The strike will also have a strong social impact. A single worker supports about five more people. For every single job lost, there are another five hungry people,” he said.

He also questioned the affordability of an above inflation wage increase.

NPEA has previously said that its wage offer was fair and reasonable given the country’s slow economic growth, the high currency exchange rate and the drastic decline in the crude oil price towards the end of last year.

But the chief economist at economists.co.za, Mike