Strikes cost money. They cost everyone. Workers who down tools usually are not paid. The company loses production. Management misses targets. And shareholders are unhappy as they could have had better returns elsewhere.
As many as 31000 auto workers will down tools this morning after wage negotiations between the National Union of Metalworkers (Numsa) and employers broke down last week.
This time last year, strikes in South Africa became associated with large, threatening crowds demanding huge salary increases. Wildcat strikes spread like fire across the country's mining sector. Violence followed.
These days one is almost grateful to hear that a trade union was granted a strike certificate. Thank goodness, it won't be a wildcat strike! At least management and union leaders will be able to negotiate. A war of words and some sabre-rattling will ensue, but not real war and real sabres.
Still, everyone involved will lose money.
Numsa is intent on getting its members a 14% increase. Carmakers say this is unaffordable.
Our auto industry is quite different from mining. Where labour represents more than half the costs at a gold mine, the salary bill is less than 10% of total costs at South African vehicle manufacturers. But this does not mean that there is much room to manoeuvre. Manufacturing world-class vehicles requires lots of capital and the latest technology.
South Africa's BMW, GM, VW, Mercedes or Toyota have to bid against their peers in other countries to win the contracts from head office to build specific vehicles here.
The competition is tough. And the margins, so an executive in the industry told The Times last month, are thin.
Why let head office in Germany, Japan or the US hesitate about awarding large contracts to South Africa? Why drag out the process?
Striking might get some attention. But striking a deal would help to secure the future of the entire industry and its workers.
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