If the labor issue was the main reason behind this move, i seriously doubt if we would be able to compete. The unions resist all attempts at automating the CMT factories, much like the service stations in this country. With the productivity of the labor force coupled together with our labor laws i don't see it happening. Sorry if i sound like a bit of a pessimist here.
Dave giving you age away there, so glad I'm not old enough to remember the 70's.
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I think that is exactly the problem. We could never compete with china head on when it comes to the cost of labour. Automation is the next logical step forward if we want to be competetive but you wont be very popular if you build a large factory but only employ a handful of people to make sure the bearings are oiled.
I liked Tito's comments on this.
It doesn't make sense from Tito's perspective because his sole mandate is to keep inflation low, and the quota's will effectively push inflation up.It was possible the large number of goods from India and China were helping to keep inflation low, he continued.
Mboweni told Parliament last month that the quotas did not make economic sense and would not save an industry that was not competitive.
"If you have not become competitive, you have no dog's chance in hell of becoming competitive in the three years or so that the quota will be imposed," he told the portfolio committee on finance.
"I gather [Vavi] says I should not talk about the economy, only monetary policy," Mboweni told the dinner guests.
"I'll stick to monetary policy if he sticks to union organising."
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Last edited by Dave A; 31-Oct-06 at 12:01 PM.
Now that is sharp!!!"I gather [Vavi] says I should not talk about the economy, only monetary policy," Mboweni told the dinner guests.
"I'll stick to monetary policy if he sticks to union organising."
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That was the clincher
From the one economist who correctly predicted the June rate hike,
“We need to look at areas [of manufacturing] where we are competitive and create incentives for labour-intensive investment,” she says, citing tax incentives, red tape and encouraging small businesses as possible measures.
“It’s not just going to go away. We need a targeted government programme to get things right. It’s very hard for any country to be competitive with India and China. It’s not going to help to put trade barriers up. It’s only going to disadvantage the consumer.”
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