JOHANNESBURG, July 3 (AFP): South Africa's latest mass strike could dismay investors and prolong the country's sub-par economic growth, the credit ratings agency Moody's warned Thursday.
Moody's said the strike by more than 200,000 engineering and metal workers would damage the country's "already deteriorating reputation among investors."
Members of the NUMSA union downed tools on Tuesday to press demands for a double-digit pay raise.
Further negotiations between the union and employers are expected to take place at 16:00 GMT on Thursday, according to the steel and engineering industry federation, SEIFSA.
But Moody's said the strike "risks paralysing nearly one third of the manufacturing sector" and would mean South Africa would be unable to take advantage of a more favourable global economic outlook.
The strike -- South Africa's biggest ever -- comes days after the resolution of a five-month long platinum strike that pushed the economy to the brink of recession.
"The NUMSA strike threatens to bring this year's number of lost workdays close to the 20.7 million record set in 2010."
"South Africa's reputation among investors is being increasingly damaged by the strike-prone nature of its economy. Carmakers BMW and Nissan recently decided against expanding their production... citing the costs posed by the month-long strike in two sub sectors of the industry."
Moody's also warned that the strike could affect the country's credit rating.
S African strike may take toll on investors
FE Team | Published: July 04, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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