Steel Industry Facing Major Strike Risks in October, Possibly Worse Than 2014

LOCAL NEWS

• SA's Struggling steel industry facing a costly national strike by union Numsa which may be worse than the four week industrial action in 2014 which cost the industry R300m/day and the broader economy a total of R6bn.
• The Indefinite strike is set to start in October over wage demands and the steel industry is preparing for the "worst case scenario" that may hurt the supply of steel in SA and block key supply chains.
• Numsa is demanding an 8% 1y increase and adjustment of CPI +2% for the following two years (~6% 3y average) but employers have maxed out at 4.4% & CPI +0.5%
• Activists call for the replacement of resources minister Gwede Mantashe with protesters chaining themselves to gates and demanding the implementation of renewable energy policies. Also called for affected communities to be involved in mining decision-making. The movement also spoke out against the Karpowership deal – highlighting broad opportunities for corruption in the 20yr contracts
• D-Day for SAA as it returns to the skies today after a year of being grounded due to finances. The company is now out of business rescue and ready to continue operations.
• However, many analysts say that the funding it has received may not be sufficient and may need to return to Govt for more funding – which it has stood staunchly against