South Africa: Truck driver strike exerts pressure on retailers

The truck drivers’ strike in South Africa is severely affecting the prices of goods originating from that country. Particularly hard hit by the industrial action is Nambia's fresh produce retailer, Fruit & Veg, which imports most of its fruit and some of its vegetables from South Africa.

This is amid reports that there are a number of Namibian-bound freight trucks, and Namibian truck drivers, stuck in South Africa unable to return to Namibia because of the strike. The strike, in its second week, has been marred by violence and intimidation.

Leon Nel, General Manager at Fruit & Veg, says the prices of some fresh produce from South Africa have increased by more than 100 percent during the last two weeks.

“Just as an example, two weeks ago we paid N$90 per box for yellow peppers and yesterday the price was N$190 per box.” Nel attributed the steep escalation in prices to the basic economic principle of supply and demand, and in the case of the ongoing strike, demand is outstripping supply by far, since only a handful of trucks risk delivering goods to the relevant depots.

“The biggest problem”, says Nel, “is delivering goods to the markets where we purchase fresh produce to bring to Namibia. It is at these markets that trucks and drivers are at risk of violence from the striking employees.”

Although Fruit & Veg sources a significant portion of its produce from close to 60 local farmers, certain produce, particularly fruit, has to be sourced from South Africa.

South Africa’s National Bargaining Council for the Road Freight and Logistics Industry and the South African Transport and Allied Workers Union (Satawu) were scheduled to meet again yesterday for a third round of wage negotiations to try and end the truck drivers’ strike.

More than 22 000 truck drivers in South Africa have been on strike for the past two weeks demanding a salary increase of 12 percent, while employers are only prepared to offer around 8 percent.

Working drivers have been intimidated and attacked, and several trucks set alight. The Western Cape Chamber of Commerce said it hopes the wage dispute between striking truck drivers and employers will be resolved soon.

Source: www.newera.com.na