Thursday, July 9, 2009

Talk about shooting yourself in the foot

The South African construction union strike enters it's second day, and if there's ever been an analogy for shooting one's self in the foot, this is it. For those of you who don't know, there's a small soccer match that will be held in SA in... 336 days.

The issue here is that SA was awarded host nation status after a lot of controversy and questioning of their ability to provide an adequate infrastructure and world-class venues. This in conjunction with SA's continuing issues with a rising crime rate. But FIFA had bowed to international pressure that Africa *must* host the cup, and so SA2010 it is.

So if you're a South African construction worker, this has to be heaven on earth. In the midst of the largest world recession in 50 years, you're guaranteed 2 years of continuous work, when SA has a 21% unemployment rate.

And now they're unhappy that they're only being offered a 10% raise instead of the 13% one they want. And they *know* they have the leverage. Unfortunately, this is extremely short-sighted of them. For the difference of 3%, they are effectively killing any chance SA has for future events and long-term construction/infrastructure projects. FIFA will *absolutely* pull the world cup if January rolls around and the sites do not look ready to go. Germany and the United States are licking their lips for the chance to step in save the day in a very lucrative manner.

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