Tuesday, 17 September 2013 13:00

M&R outlines labour losses and concerns

Murray & Roberts recently announced that it has incurred around R350-million in losses in its South African business owing to labour unrest and strikes in the 2013 financial year. They cite the deteriorating labour situation in the country is a "big problem" and that he is concerned about the spate of strikes at the Medupi power station construction project, as well as the current general strike in the local construction industry.

M&R believes it is very difficult to build projects in S.A in the current labour environment - safely and on time.

M&R group financial director adds:

  • workers on the Medupi site worked only 7 out of the 12 months in the 2013 financial year
  • difficult for government to exercise control in the labour environment, as the trade unions form a big part of its support base, more so now, as the 2014 elections loom large
  • there is no justification for demands of 40% pay increases in an environment where inflation is only 6%

M&R in August reported that revenue for the financial year ended June 30 increased by R3-billion to R34.6-billion over the previous year, with the group swinging from a loss of R358-million to an operating profit of R1.7-billion.