We really don't need this at this
stage of our development

As you read this, we may well be in the grips of the worst and most damaging strike this country has experienced in more than a decade. At the time of writing, Cosatu affiliates had announced May 28th as the starting date for an indefinite nationals strike in the public service. The issue is all about the Government offering a 6% wage increase against the union's 12% demand. What's scary about this is that Cosatu represents about 600 000 public service staff and should the strike go ahead - which as you read this we will know if it has or not - it could do untold damage not only to our local economy but also to our international image. The only thing we can all be positive about is that it won't affect the workings of eNatis as eNatis is not working anyway.

I'm not sure who did the survey but I heard on Radio 702 the other day that South Africa had dropped down quite substantially in some or other ranking which determines the competitiveness and attractiveness of doing business with different countries around the world. Crime was rated as a major negative influence and while our politicians were, for ages, in denial mode regarding this vexing problem, it seems by some of their recent actions and utterances, that they have finally come to accept that the problem is, as we've all said for ages, a serious one. Proof of this is that our rather confused Minister of Safety & Security, Charles Ngqakula, who not long ago advised all who winged about crime to pack their bags and leave, was seen roaming round investment circles in the UK assuring all that the Government did view crime seriously and was taking steps to tackle it. Given his earlier statements of denial, one wonders whether he had gone there with a firm belief in what he was saying or whether he undertook the trip merely to build up Voyager miles. Whatever his reason, the point remains that the Government seems to have come to realise that South Africa cannot expect to plod on its path of self-destruction without feeling the adverse effects of this from the outside world.

I often feel that many of our politico's would have been ideally suited to the sanctions era as, like the NP politicians of the day, they too seem to think that South Africa is an island and a law until itself. Do what we want to and no outsider should evaluate the impacts in terms of doing business with us. It's such a naïve approach and yet, I feel, is one that many of our politicians - especially down at provincial level - adopt. Perhaps they are still glowing in the euphoria of the warm welcome the global community gave us when our beloved Madiba took over the reins in 1994. Sure we were welcomed back into the global village and understanding was thrown our way in terms of giving us time to restructure our society and get our ducks in a row. BUT, it's now 13 years down the line and the warm glow associated with honeymoons has long gone. That warm initial glow that generates feelings such the willingness to overlook all faults and carry on regardless, does wane with time. Eeish! It's such a simple thing to grasp and yet the reality of it seems to miss many politicians.

I have the privilege of travelling quite extensively to many overseas countries in conducting my work and therefore get to speak to many top businessmen in different countries. Without exception, all of them mention crime as a negative factor for continued and increased investment in South Africa. "When are you guys going to bring it under control," is the normal question asked. "When the Government admits it as a reality," is my normal answer. I have stated before that I don't think local businessmen are anywhere near vocal enough when it comes to voicing their opinions on issues such as this. It was thus I was thrilled to hear Dr Hansgeorg Niefer, chairman of DaimlerChrysler South Africa, voice crime as one of the negative factors impacting on South Africa. This is the first time in DCSA's annual briefing where top management gather to brief the media, that it has been put up as a priority concern. During question time, I asked him to define the impact of it. Why did he feel it serious enough to highlight and what potential impact could it have on investment? His answer was sobering. "It could stop further investment." This statement comes from a businessman whose overseas principles have invested millions and millions of Rands into local operations - particularly into manufacturing operations where cars are made in South Africa for the rest of the world. DCSA has to compete for this investment buck with other countries and the 'buck stops here' nature of his answer to the impact of crime obviously means that crime is now on the boardroom table of DaimlerChrysler's head-office overseas.

All this is bad enough. Now let's add a national public service strike where the operations of public administration, safety and security, health, education, transport and ports - as well as many other areas of this country's vital operational activities - will be brought to a halt, and what image does this send out to the world. They are already having to get around the crime issues and on top of this, they now have to deal with a crippled economy. If transport and port activities come to a halt, exports come to a halt and this will hardly thrill those production managers overseas who are relying on timeous and reliable deliveries of exports products from South Africa. The world's production systems work on Just-in-Time and any hold-up in the delivery of required products has the potential to bring entire production lines to a halt. Would you want to invest in a country which presents you with such a disastrous scenario? Of course not! Well, nor do many overseas investors. Much better for them is to go to places like China and India - often at much lower costs. So, as I write this, I'm hoping with all my heart that the strike does not come off. As you read this, you will know if it has or not. I hope not because if it has, the impact of adding a crippling strike to the already debilitating crime situation will send waves of negativity to all across the ocean and this is something we really do not need at this stage of our country's development. 

Footnote: I guess if I saw my leaders getting increases of up to 50% and I was only being offered 6%, I'd also be a bit peeved off. Eeiish - another day of hell in illogical Paradise.

Patrick O'Leary
Managing Editor