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Thursday, July 9, 2009.

From Creamer Media in Johannesburg, I'm Shannon O'Donnell.

Making headlines today:

On Thursday, the South African Chamber of Commerce and Industry expressed its concern over the impact that the construction strike would have on the country's economy and the perception of investors in the local business environment.

Sacci CEO Neren Rau said that he believed strikes were used as an instrument of influence too often and too soon in negotiations on socio-economic issues. He said that in the current economic climate, workers should temper their demands. He noted that the South African economy wasn't immune to the global downturn and unrealistic demands on business would only serve to exacerbate the situation and retard economic recovery.

Rau made an appeal for rational minds to prevail in the wage negotiations so as not to allow the dispute to jeopardise the 2010 FIFA World Cup.

Meanwhile, the Local Organising Committee CEO Danny Jordaan stated that it believed that the strike would be resolved "as soon as possible". He said that it remained confident that the stadiums would be completed on schedule.

Financial support from the Industrial Development Corporation has been the first programme government implemented to help the stressed automotive industry, with several other options also being placed on the table. This is after consulting the National Association of Automobile Manufacturers of South Africa.

Toyota South Africa Motors president and CEO Dr Johan van Zyl explained that companies that are considered viable in the medium- to long-term, but which are experiencing short-term cash flow difficulties, can apply for loan assistance from the IDC through the Department of Trade and Industry.

Other aid packages still being considered include providing financial support to enterprises within the motor sector to allow them to avoid retrenchments for a period of up to six months where the business model indicates that there is a good chance of a turnaround within that time.

Another mechanism being considered is supporting the retraining and reskilling of workers as an alternative to retrenchment.

Also making headlines:

Economist Prof Joseph Stiglitz says that a ‘rigid' application of inflation targeting is a ‘costly mistake'.
A new 160-billion-dollar structure is needed for developing nations to deal with climate change.
South Africa reviews its energy-efficiency strategy.
And, Mondi will mothball its South African paper machine and layoff staff.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.