The strength of unions during apartheid hindered economic development. The union workers had little incentive to raise productivity. Since 1994, not much has changed. The unions retain political power and use it to limit labor market reforms. Now this.
Some 70,000 construction workers in South Africa have gone on strike, halting work on stadiums being built for the 2010 World Cup. Unions are threatening to wreck the tournament if their demands for a 13% wage increase are not met.
A 13% percent wage increase during a worldwide recession and when inflation is around 8% seems reasonable.
