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FACTBOX: South Africa's economy faces wave of wage strikes

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JOHANNESBURG | Fri Jul 24, 2009 1:03pm EDT

JOHANNESBURG (Reuters) - South African council workers are set to strike from Monday and 150,000 workers could stay at home, hitting public services.

Below are details of sectors affected and wage settlements: (South Africa's annual inflation was 8.0 percent in May).

GOLD

South African gold producers raised their pay offer for miners on Tuesday, averting a possible strike for now.

The unions are due to meet on July 28 for a final session of negotiations before deciding whether to declare a strike.

The threat of a gold miners' strike has added to a wave of industrial action, raising pressures on newly elected President Jacob Zuma to adopt a more leftist approach to economic policy.

The National Union of Mineworkers (NUM) -- South Africa's biggest union -- said gold employers raised their offer to between 9 and 10.5 percent from the last proposal of an increase of between 8 and 10 percent.

The employers have also offered to raise the minimum wage to 4,000 rand, the union said.

South African gold producers including AngloGold Ashanti, Gold Fields and Harmony negotiate as one under the country's Chamber of Mines.

PLATINUM

Wage negotiations in the platinum sector are continuing with no specific threat yet at the world's No. 1 and 2 producers Anglo Platinum and Impala Platinum.

The NUM rejected last week an improved 8.5 percent wage offer by Impala Platinum, the world's second largest producer of the precious metal.

It lowered its own demand to 15.5 percent from an initial increase of 20 percent.

Wage talks with bigger rival Anglo Platinum are also ongoing without any strike threat.

COAL

South Africa's coal sector employers made an improved wage offer to workers of between 9 and 11 percent this week, the National Union of Mineworkers said.

The coal producers last offered a pay increase of between 8.5 and 9.5 percent, below the union's 15 percent demands.

Solidarity union said on Thursday it was confident a wage deal could be reached with coal firms without workers striking, after companies raised their wage offer.

Unions are now consulting their members on whether to accept the offer, with a final meeting scheduled for July 28.

Companies included in the wage talks include global miner Anglo American Plc's Anglo Coal unit, Xstrata and South African diversified miner Exxaro.

MUNICIPAL WORKERS

Council workers continue to negotiate but have called a strike for Monday to press local government to raise wages. The South African Municipal Workers Union and Independent Municipal and Allied Trade Union says the strike could affect up to 150,000 civil servants, hitting the public sector across the country.

The union wants a 15 percent pay rise. A mediator proposed an 11.5 percent increase.

PAPER, CHEMICALS, PHARMACEUTICALS

South African paper, pharmaceutical and chemical sector workers began a strike on July 20 after wage talks failed.

The bigger Chemical, Energy Paper, Printing, Wood and Allied Workers Union (CEPPWAWU) had been in talks with employers for a 10 percent pay rise.

Pharmaceutical employers raised their offer to the asked-for 10 percent on July 24 but refused other demands such as better maternity benefits. Chemicals employers have raised their offer to 9 percent, while paper companies are still offering 7.5 percent.

CEPPWAWU has said it represents 65,000 members. Employers in the sectors it covers include paper makers Sappi and Mondi, petrochemicals group Sasol, state-owned oil company PetroSA, and chemicals firms African Oxygen Ltd. and Omnia. Negotiations are to continue.

RAIL

Workers in the commuter rail industry may strike on July 28.

Talks were to continue over the weekend to avert industrial action after the South African Transport and Allied Workers Union and the United Transport and Allied Workers Union served state rail operator Metrorail with a notice to strike.

Metrorail has revised its offer to between 7 and 8.5 percent but unions remain unhappy. Satawu is demanding a 12.5 percent increase.

COMMUNICATIONS

Workers at telecoms group Telkom have decided to embark on industrial action, and plan to hand the company a 48-hour notice to strike on Monday, July 27.

It will start with pickets and hold a strike next month.

DOCTORS

A doctors' wage strike lasted about two weeks with doctors demanding more than 50 percent in pay rises, pressuring the government to boost spending. Most doctors are back at work even though some of their demands are yet to be met.

PUBLIC BROADCASTER

Workers at South Africa's public broadcaster SABC rejected the latest wage offer made to them by the broadcaster on Monday. SABC offered rises of between 9.25 and 10.25 percent, short of a 12.2 percent hike requested by the workers.

Should SABC fail to meet their demands, the workers plan to strike, threatening a nationwide television blackout for the first time since 1976.

WAGE SETTLEMENTS:

PETROLEUM

CEPPWAWU union said it had agreed a 9.5 percent wage hike offered by fuel companies, but its members could still down tools next week in solidarity with other striking workers.

Solidarity union said it had reached a deal with petroleum sector bosses for a 9.5 percent pay rise, averting a possible strike that could have affected fuel supplies.

CONSTRUCTION

South African construction workers ended a week-long strike that disrupted work on stadiums for the 2010 World Cup after they agreed to a 12 percent wage increase.

DE BEERS

South African workers at De Beers, the world's top diamond producer, have agreed to a pay rise of 9 percent and dropped a demand for more because the industry has been hit by the global crisis, their union said.

(Reporting by James Macharia, Muchena Zigomo, Agnieszka Flak, Gordon Bell and Shapi Shacinda; editing by Robert Woodward)

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