Businesses take a hit as Cape taxi strike keeps workers at home

The violent taxi strike has caused widespread absenteeism and disruption to businesses say organisations affiliated to the Cape Chamber of Commerce and Industry.

“Although for many sectors it is too soon to quantify the economic loss, all report widespread absenteeism linked to commuters' inability to reach the workplace,” the chamber’s deputy president Derryn Brigg said on Tuesday.

“One sector drew a parallel between the impact of the strike on business operations and the impact of Covid-19.”

Affects of the strike, according to the chamber, include:

• Retail motor industry: A 50% workforce impact. The sector has implemented a “no work, no pay” policy. Turnover has been significantly affected with fewer customer visits.
• Business process outsourcing: Significant affects in this sector with fears that negative publicity might result in operations shifting away from Cape Town.
• South African Oil & Gas Alliance: Partial workforce effects in strike-affected areas.
• The Independent Community Pharmacy Association: Staff using public transport work from home.
• Fish SA: About 80% of the workforce affected. Substantial number of workers were either absent from work or arrived late. Factory operations were notably affected, leading to underutilised production lines.
• Federated Hospitality Association of Southern Africa: Anticipated a sharp decline in bookings in light of the UK issuing a safety warning for its citizens in Cape Town. This concern is amplified by the fact that the sector is in its peak booking season which aligns with the upcoming summer period.
• Wholesale and retail (Franchise Association of South Africa): Compiling statistics.
• The Furniture Manufacturing Sector: Absenteeism of about 60% in some  larger establishments.
• The South African Association of Freight Forwarders: Reported a severe impact. The airport and its precincts were blocked off, preventing airfreight from getting through.
• Cape Town port: Operated with 60% of its staff, hampering ship movements, container discharge, and collection/deliveries. Some goods are not reaching production lines, and finished products are not reaching consumers. Export activities are also affected due to concerns for staff safety, further affecting the movement of goods and products.
• National Clothing Retail Federation: Reported 30% non-attendance and a huge drop in consumers through stores. Numbers are down and will affect turnovers.

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