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strike thumb medium85 85Bloomberg reports that according to the National Employers Association of SA (Neasa), the ongoing strike in the metals and engineering industries is likely to lead to job cuts, further hammering a sector that has been in decline for several years.

The week-long walkout by as many as 300,000 members and allies of the National Union of Metalworkers of SA (Numsa) has affected five provinces and disrupted supply chains to major firms, including carmaker BMW. The trade union was weighing up a response to a renewed pay offer, spokeswoman Phakamile Hlubi-Majola reported on Tuesday. “These strikes lead to employers having to put people on short-time and having to let some of the workers go. It ultimately leads to job losses,” Neasa’s CEO Gerhard Papenfus warned. A similar Numsa walkout in 2014 lasted more than three weeks. The Steel and Engineering Industries Federation of Southern Africa (Seifsa) said “all if not most” of its membership had been affected by this year’s shutdown due to the “knock-on effect throughout the sector”. But, Seifsa’s CEO Lucio Trentini indicated: “We are still seriously engaging one another.” He declined to give details of the revised offer as the matter was under consideration. Numsa had earlier demanded an 8% increase in the first year of a new three-year deal, compared with the latest consumer inflation rate of 4.9%. The walkout has turned violent in some places, Papenfus claimed, with those picketing trying to push those still working into joining the strike. “At a meeting I was at yesterday some of the strikers started breaking down the walls. That is very intimidating,” he stated.

  • Read the full original of the report in the above regard by Loni Prinsloo and John Bowker at Moneyweb

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