About time someone really shook up the LRA roost

[Dave A]

So NUMSA is going on strike on Tuesday.
No surprise to anyone, I expect. I've been getting notices from suppliers for over a month now indicating a strike by NUMSA seemed likely, and I should plan for a disruption to supplies.

I didn't see this one coming though. Employers tell metalworkers to go home.

That should shake things up a bit!

[IanF]

Why not, the unions shouldn't be the only ones to be irresponsible. Will the non unionised workers put the unions under more pressure?
The unintended consequences will be interesting to watch.

[Justloadit]

I think that the Unions have had a wake up call with this "LockOut". I also disagree with this collective bargaining. Small companies just have no say in what is negotiated, but have to accept the new terms. The Unions have been calling the shots for years, and have been in the pound seat while employers dug deeper and deeper into their pockets to maintain production. But there will come a time, when there is nothing left to give. We have reached that point. Business can not expand due to lack of available electricity, and currently can not be efficient in manufacture because of labour issue, and on top of that, cheap Chinese imports has place a tremendous pressure on local manufacturers, reducing the profit margins substantially.

It seems the Unions have already requested the permission to strike before the negotiations started. Indicating to me they had no intention of negotiating but going on strike immediately.

I see my business in a tight position, in which I am doing more of the work to maintain profitability by attempting to reduce costs, but this makes it a very long day for me, and is not sustainable, as at some point something will give in.

[Dave A]

I'm curious as to the thinking behind the move.

As a statement that enough is enough already, it's a pretty clear, well-timed notice (being right on the back of the 5 month platinum mining strike which has already shown government that big strikes have serious consequences). It's bound to attract high level attention right quick.

But I wonder if there is something more hoped for behind the move?

[wynn]

Mothballing your factory for thirty days at a time (like happens during annual year end shut down) must surely be cheaper than keeping everything ticking over on the offchance that the strike will be over soon, send non striking staff on holiday now because you are probably going to have to work through the usual shutdown period to catch up, that way you are not going to have to pay double (pay and leave pay) at the end of the year.

If the strike is called off in the middle of the month the 'Wekkas' will have to wait till the end of the month before the factory reopens.

[Justloadit]

This also takes the pressure off employers to negotiate quickly. There is ample time now to revue every request, and send it back with a counter offer.

[Dave A]

Strike with high stakes.

I'm inclined to agree. This (and probably the platinum mining strike) seems to be driven more by political agendas than wages.

[Justloadit]

Dave I agree, this is not about the value of wages, but flexing muscles in the political arena.

[IanF]

I was chatting to a guy at running yesterday who is a armature winder. The company he works for has closed for a month and he is on unpaid leave.
The unions seem determined to drag us into the realm of "just another failed African country"
I remember visiting my mom in Malawi in the 90's and in all seriousness she said you can only have 2 of the 3 working.
This was phone, electricity and water. We are not far off from that.

[Greig Whitton]

The unions seem determined to drag us into the realm of "just another failed African country"

I don't think that is what the unions want. But I think that they are willing to risk it to get what they want.

[IanF]

I don't think that is what the unions want. But I think that they are willing to risk it to get what they want.

Now you have my interest what is the Union's endgame?

[Greig Whitton]

They're playing a game of political chicken with the ANC. The first one to blink loses the working class constituency. If neither of them blink, we all lose.

[IanF]

So now this political game causes mayhem and lousy service from utilities - and this won't lead to being just another failed African country?
This looks like one of the consequences.

[Greig Whitton]

Don't get me wrong, I fully agree that widespread mayhem and failure is a definite possibility. But when you're playing poker and decide to go all in, you don't care how your chips feel about it.

[Dave A]

Don't get me wrong, I fully agree that widespread mayhem and failure is a definite possibility. But when you're playing poker and decide to go all in, you don't care how your chips feel about it.

That might just be the comment of the week!