The South African Chamber of Commerce and Industry (Sacci) has said that a national shutdown will not achieve any positive objective.
The business body said on Thursday that the country is facing significant headwinds, noting the call for a shutdown by the Economic Freedom Fighters (EFF), which has been supported by a labour union.
“Whilst the right to peaceful protest is enshrined in our constitution, this right cannot be exercised at the detriment of others. Our economy is facing significant headwinds and a national shutdown does not achieve any positive objective,” Sacci said.
“Political campaigning should be reserved for politics as all citizens who are allowed a vote, have a right to exercise that vote legitimately to elect the leader they prefer during election times. A shutdown can never be a legitimate reason to handle political differences as this is a clear abuse of the political process in which South Africa has demonstrated that conducting free and fair elections is in fact one of our strengths,” the group said.
As the country reels from the rolling power cuts, being grey listed by the global Financial Action Task Force (FATF), interest rate increases, inflation on the up, sky-rocketing fuel prices, a contraction in GDP reported for the fourth quarter of 2022 and a step away from entering a technical recession, the greater business community and economists fear the worst for the country.
The National Shutdown comes hot off the heels of stocks on the JSE suffering one of the worst weeks this year, plunging for the fourth day in a row last Friday to another two-month low.
“Disputes relating to who should or should not be the President of the republic should be resolved via the ballot box and not through calling for shutdowns. South African courts are also independent and accessible to adjudicate any electoral disputes relating to who should govern. We urge the organisers of the shutdown to consider the negative impact of the shutdown call. We may descend into an unacceptable scenario where any or all political parties who lose an election, resort to reckless calls for a shutdown ostensibly to remove political opponents,” Sacci said.
“Our challenges of economic growth, unemployment, poverty, and inequality cannot be resolved by resorting to extra parliamentary and negligent political action that disrupts economic activity. We also urge the organisers to do everything in their power to condemn the apparent intimidation and threats of looting businesses and interfering with those who choose not to participate in the shutdown.
“Our economy is at a difficult position of recovery and reckless actions by political parties or labour unions should be universally condemned. We urge our business owners to not submit to intimidation, whilst taking precautions, in working with law enforcement agencies, to protect their property and possessions, especially that of life and limb,” Sacci further stated.
Meanwhile, trade union, Solidarity has said that its members will work on Monday and demand employers remain open.
Solidarity said it sent a letter today to more than 1 200 companies where it is organised, in which it states that its members will show up for work on Monday and that employers are expected to remain open so that Solidarity members can work.
According to Dr Dirk Hermann, Chief Executive of Solidarity, Solidarity members have a contractual duty to work and the employer has a duty to provide work.
Hermann says Solidarity members offer their services and employers cannot send them on compulsory leave or close office and not pay them for it.
Solidarity mentions in its letter that the country cannot afford to lose a day’s economic income. It will further threaten jobs.
In its letter, Solidarity encourages employers to hold Julius Malema in person and the EFF civilly liable, for any damages caused.
“Our members will not be intimidated by a clown in a red overall who huffs and puffs and who is rejected by 90% of South Africans. Solidarity members will, like many other South Africans, work in their thousands. The only way for the EFF to be successful is to incite fear. This they do by having their threats expressed in the media and by circulating threatening messages. Every employer who closes as a result of vague threats, feeds the EFF’s fear tactics and is complicit in the disruption on the day,” Hermann said in the letter.
Solidarity also wrote that they expect responsible action in this regard and for real risk to be monitored.
“The necessary contingency plans must be in place. Our members want to work but they want to do so in a safe and responsible way.”
Hermann continued: “We cannot allow employers to prevent our members from working without there being a proven risk of unsafety. Should an employer prevent a Solidarity member from working in the absence of a real risk, enforce compulsory leave or no pay, they can expect labour law action against them from us.”
“Should employers close on the day based on threats, they will be feeding an anarchist culture which will demand even more next time. By giving in to EFF demands, they will contribute to us being ruled by a mob of anarchists. What we expect of employers is to exercise a choice in favour of law and order. By closing, they will do the exact opposite. This feeds disorder and violates the law. 90% of South Africans reject the EFF; employers must also do so,” Hermann further said.
BUSINESS REPORT