THE strike in the metal and engineering industries could be the last straw for small companies struggling to rebuild their businesses in the wake of the economic crisis, says the Cape Chamber of Commerce.

“Demands for an increase of more than double the inflation rate come on top of massive electricity price increases and this could be too much for some companies,” said Mr Michael Bagraim, President of the Chamber.

“We already have companies in the engineering sector on short time and if there is to be an increase of more than the seven percent offered there will be downsizing and retrenchments. I’m afraid the indications are that this strike will destroy jobs.”

The National Union of Metal Workers is demanded an increase of 13 percent.

“At a time when we should all be working together to bring more people into formal employment, the strike will discourage companies from taking on more staff. Cosatu warns about a ring of fire and the need to deal with the unemployment problem but its actions tell a different story.”

The only people to benefit from the strike would be those who already had jobs with the big companies while the demands would be more difficult for the unemployed to find work.