Mr Speaker, the long-term effects of the recent spate of unprotected strikes are starting to haunt the growth potential of the South African economy.
With the foreign investment confidence index at a 10-year low, the mining sector has lost between R12 billion and R15 billion in revenue because of strikes. Adding to this is the slow commodities market and the the growing capital cost. This sector will remain in the deficit for this year and the whole of next year.
The upcoming strikes in other sectors pose a significant risk to the South African economic growth outlook.
The Reserve Bank is worried. It has just revised the GDP growth outlook downwards. The bank has also warned that a withdrawal of global liquidity would result in a withdrawal of capital inflows, affecting South Africans seriously because of our last current account deficit which has been financed by capital inflows.
So let's realise we are in this together; the unions should adjust their demands to the current situation. The fallout around the expelled Cosatu General Secretary is not assisting the situation. When will we see real leadership coming from all leaders in the union world?