Tags: africa | gdp | strike

Strike Slams South Africa's GDP

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Thursday, 29 May 2014 11:24 AM Current | Bio | Archive

President Jacob Zuma’s newly announced Cabinet of ministers will have to find their feet promptly in order to bring stability to a number of pressing issues and to prove effective governance.

Stats SA have released the first quarters GDP growth of -.6 percent. “The main contributors to the decrease in economic activity in the first quarter of 2014 were the mining and quarrying industry (-1.3 percentage points) and the manufacturing industry (-0.7 of a percentage point).”

Over 70,000 members of the Association of Mineworkers and Construction Union (AMCU) have entered their fifth month of strike action at Anglo American Platinum, Impala Platinum and Lonmin.

The union’s no-compromise approach has brought about almost R20 billion ($191 million, U.S.) in losses in production for the mining companies and R9 billion ($86 million, U.S.) losses in wages to its striking employees. Mineral Resources Minister Ngoako Ramatlhodi has established an inter-ministerial technical team and is expected to meet labor union Amcu and mining bosses today to discuss the strike in the platinum sector.

South Africa posses over 80 percent of the world’s group metal reserves yet this quarter the mining and quarrying industry dropped 24.7 percent. What should be one of the country’s greatest assets has instigated recessionary conditions.

Matthew Klynsmith earned a business administration diploma at CTI in Cape Town, South Africa. He now works at Strategic Options as an associate partner. To read more reports from Matthew Klynsmith, Go Here Now.
 

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MatthewKlynsmith
The union’s no-compromise approach has brought about almost R20 billion ($191 million, U.S.) in losses in production for the mining companies and R9 billion ($86 million, U.S.) losses in wages to its striking employees.
africa, gdp, strike
239
2014-24-29
Thursday, 29 May 2014 11:24 AM
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