Strikes loom across country as wage demands not met
July 15, 2009
By Reuters
South Africa faces a wave of industrial action with labour unions demanding pay increases at more than the rate of inflation. Employers say they cannot afford the raises because of the tough global economic climate. Below are details of the sectors affected:
Gold
Workers in South Africa's gold sector rejected the latest offer for a pay raise of between 8 percent and 10 percent and vowed to soon escalate the dispute, the National Union of Mineworkers (NUM) said yesterday.
Three South African unions are holding talks with gold producers under the guidance of a mediator after failing to agree on wage increases.
The unions have warned that they could strike if the negotiations fail.
"NUM has this morning rejected the Chamber of Mines' offer of between 8 percent and 10 percent from gold employers and will escalate the dispute on July 21," NUM spokesman Lesiba Seshoka said yesterday.
The union received the improved offer on Monday but said the increase might not be enough to avert a strike. The wage talks are being watched closely by international markets because a strike could affect production, mining shares or metal prices.
Trade union Solidarity said separately yesterday that it had also rejected the fresh offer for workers it represented. It said AngloGold Ashanti, Gold Fields and Rand Uranium offered a wage increase of 8.5 percent for some workers, while Harmony offered a wage increase of 6.5 percent and an additional boost linked to the price of gold.
The unions warned that the next round of negotiations next Tuesday might be the last chance to avoid a strike.
"We've said to them we see this now as the last opportunity. If there's no improved offer by next Tuesday, we'll ask for a strike certificate," said Jaco Kleynhans, the spokesman for Solidarity.
Mine workers, whose lowest-earning occupations earn R3 300 a month, have demanded a 15 percent pay rise, arguing the price of gold is up despite the global economic downturn.
But gold firms say they cannot afford the increase, which is nearly twice consumer inflation of 8 percent. South Africa is the world's third-biggest gold producer, and the mining sector is subject to intense scrutiny by big foreign groups such as Anglo American.
Platinum
NUM rejected a 6.5 percent wage offer by Impala Platinum, the world's second-largest producer of the precious metal, after demanding a wage increase of 20 percent.
NUM now wants a mediator to resolve the dispute, and has threatened a strike that would affect platinum output and could affect prices.
Wage talks with bigger rival Anglo Platinum are also continuing, without any strike threat so far.
Construction
Civil engineering workers were near a deal with employers to end a strike that is holding up work on stadiums for the 2010 soccer World Cup, their union said.
The strike, which started last Wednesday, has also stopped work on the Gautrain.
Employers, including listed firms, failed in a bid to prevent the strike through legal action
Construction industry employers and unions were still locked in negotiations yesterday in a bid to end the week-long strike that has crippled the timetable for the construction of stadiums for the World Cup and other important infrastructure projects.
Narius Moloto, the general secretary of the Building Construction and Allied Workers Union (Bcawu), said yesterday that members of Bcawu and the NUM had rejected the improved 11.5 percent wage offer negotiated with the SA Federation of Civil Engineering Contractors (Safcec) last week.
Moloto said the two unions had jointly submitted a revised proposal of a 12 percent wage increase to Safcec, which was consulting their members to obtain a revised mandate.
"We will be reconvening at the Commission for Conciliation, Mediation and Arbitration and by the time we leave here will either have an agreement or the situation will remain the same with workers still on strike," he said.
Petroleum
The Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu) said it might go on strike after failing to reach a wage agreement with firms including Sasol, BP, Royal Dutch Shell, Total, Chevron and state firm PetroSA.Ceppwawu said it was willing to settle at a 10 percent wage increase. The petroleum sector was offering 9 percent.
Paper
Solidarity said the latest offer in the paper sector was "unacceptable" and it would not agree to a rise below inflation.
Paper makers Sappi and Mondi have offered raises of between 6 percent and 7.5 percent, up from their initial offer of 4 percent to 5 percent. Unions are demanding 12 percent.
Chemicals
Solidarity said it had the green light to strike over wages in the chemical sector, but would hold further meetings with employers. Strikes could affect Sasol, African Oxygen and Omnia.
Doctors
A crippling public sector doctors' wage strike lasted about two weeks with doctors demanding pay rises of more than 50 percent, pressuring the government to boost spending.
Most doctors are back at work even though some demands have yet to be met.
SABC
Workers at the SABC rejected the latest wage offer made by the broadcaster on Monday. The SABC offered between 9.25 percent and 10.25 percent, short of a 12.2 percent hike requested by the workers.
The workers plan to strike, threatening a nationwide television blackout for the first time since 1976.
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