Business blames unions for weak economy

Business Leadership SA boss says labour's inability to compromise on salaries at Eskom and on its unbundling has weighed on growthBLSA CEO Bonang Mohale says workers' above-inflation salary increases at Eskom in 2018 are partly to blame for SA's low growth. Picture: SUNDAY TIMES

The business organisation, which represents more than 70 of the country’s biggest companies, said labour’s inability to compromise on salaries at Eskom and the unbundling of the embattled power utility has weighed on the economy. While the Treasury expects growth of 1.5% in 2019 , the Reserve Bank, which expects 1.3%, said in April that if power cuts persist throughout 2019, it could shave as much as 1.1 percentage points off growth for the year and more than 100,000 job losses.

“The economy is weak because of the supply-side of the economy that doesn’t allow people to participate.”

Absurd!

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ANALYSIS: Unions are at a power crossroads and – like with Eskom – it is precariousTrade unions have been one of the dominant forces in South African politics for more than three decades. But as the world races into the Fourth Industrial Revolution and a global gig economy, they could find that political power drastically diluted.
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