Key sectors hit as violent taxi strike grips Cape Town

The taxi strike in Cape Town has led to absenteeism of more than 50% in key sectors of the economy, with the fishing industry the hardest hit, the Cape Chamber of Commerce and Industry reported on Monday.

Though the chamber said it is too early to quantify the economic impact of the strike, various sectors have been brought close to the brink with workers unable to make it to work.

Chaos erupted in Cape Town last week when the SA National Taxi Council (Santaco) abruptly halted all minibus taxi operations in the Western Cape after an impasse with City of Cape Town authorities. This followed a blockade by taxi operators last Tuesday in response to the impounding of about 15 vehicles.

The situation escalated into clashes with police and metro police, who used stun grenades to disperse crowds and smashed a window of a taxi to extract protesters. More than 200,000 commuters were affected by the halt in public transport services.

While the fishing industry reported 80% absenteeism, the retail motor industry said the strike’s impact is similar to that of the Covid-19 pandemic.

The Western Cape accounts for 71% of employment in the fishing industry, and the sector contributes about 5% of the province’s GDP.

The retail motor industry, which has implemented a “no work, no pay” policy, has seen an absenteeism rate above 50%. Some large companies in the furniture manufacturing sector reported as much as 60% absenteeism, the chamber said.

The Western Cape, a haven for tourism in the country, has also suffered reputational damage as a result of the strike.

The chamber said it expects lower bookings for local establishments. This is “in light of the UK issuing a safety warning for its citizens” in Cape Town.

“This concern is amplified by the fact that the sector is currently in its peak booking season, which aligns with the upcoming summer period,” the chamber said in a statement.

It is estimated that the tourism industry in the Western Cape accounts for 9% of gross regional product and employs 9% of the province’s workforce.

Western Cape premier Alan Winde called for an end to the violence, which has claimed at least two lives and disrupted services and schooling.

“I am angry that as a result of the strike, residents have been unable to get home to their families or to work, school, shops, clinics and other critical sites,” said Winde.

“Many government services, including health and social development, are having to close facilities and are unable to provide desperately needed services to our communities. Our schooling system is also being affected. This is not acceptable.”

Winde welcomed Santaco’s condemnation of the violence, adding that a resolution to the dispute, which has seen a number of road blockades, is urgent.

Several health facilities have been closed or have suspended services as staff were unable to get to work. Elective surgery remained suspended on Tuesday at Tygerberg, Red Cross and Groote Schuur hospitals.

Clinics and community health centres were closed at Philippi, Nyanga, Crossroads, Nolungile and Gugulethu.

“Certain facilities within the metropole are closed today and community-based care to our vulnerable clients in these areas has unfortunately also been suspended until it is safe for our staff to go into them,” said Dr Saadiq Kariem, chief of operations at the provincial department of health and wellness.

Airports Company SA (Acsa) advised passengers booked on domestic flights to arrive two hours before their flight departs and international travellers at least four hours at Cape Town International Airport.

“Due to the current circumstances, there has been a reduction in staff availability, which could impact certain services at the airport,” Acsa said.

A heavy police contingent was deployed along the road to Cape Town International Airport and other hot spots.

Western Cape education MEC David Maynier said the strike prevented 456,020 pupils and 17,449 staff from attending school on Monday. That was a significant increase on the 287,000 pupils and 9,500 staff who were absent on Friday. Twenty-seven schools had to close on Monday and a number of other schools allowed pupils to leave early.

Police arrested 35 people for alleged violence related to the taxi strike on Monday. Of the arrests, 27 were related to a taxi blockade on the N2 that caused major traffic disruptions.

The city said eight taxi drivers were arrested at Mfuleni. “We have witnessed attempts by elements within the taxi industry to generate chaos,” the city said.

Santaco said that it will continue with its strike after talks initiated to resolve the impasse collapsed at the weekend.

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