Economic analysts in South Africa has warned against the looming strike season, stating that in the long run, it could have a lasting effect on the public sector and thwart South Africa’s expected economic recovery this year.
The Managing Director, NFB Private Wealth Management, Andrew Duvenage, said the strike season might stand as a big risk to confidence of investors and plunge this year into a worse situation than previous years.
“Our recovery is fragile and lower than the rest of the world. We cannot now afford to have economic activity halted again.
“But the continuous capitulation to unions will continue seeing the cost going up as wage bill rises above inflation. The government has to make tough decision whether political considerations of unions are above the country’s,” he said.