Term:UNION ACTIVITY

Union activity is a major problem in South Africa where labour legislation is skewed heavily in favour of employees and against employers. Strikes are common place in all of our labour-intensive industries – like the mining industry or the metals industry – and, of course, in the public sector. Union action generally makes the economy less productive. It is important to establish the extent to which a listed company is exposed to union activity before buying its shares. Union action has been so successful in South Africa that in certain sectors an annual increase, which is usually above the inflation rate, has been accepted as the norm. Thus the announcement from the new CEO of Escom (Hadebe) that in June 2018 there would be a zero percent increase for all staff members, has caused consternation among unions. It could signal a general show-down between the union movement and government.

Disclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index