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FACTBOX: South Africa's economy facing more strikes

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Mon Jul 27, 2009 11:29am EDT

(Reuters) - Thousands of South African council workers went on strike on Monday to press for wage hikes in a move which has crippled public services nationwide, piling political pressure on new President Jacob Zuma.

The strike, by public transport workers, refuse collectors and licensing officers among others, follows days of violent protests as residents of impoverished townships complained about lack of healthcare, water and electricity.

Below are details of sectors affected and wage settlements:

GOLD

South Africa's Chamber of Mines said it saw a good possibility of reaching a wage deal with workers in the gold sector on Tuesday, putting an end to week-long talks and strike threats.

South African gold producers raised their pay offer for miners on July 21, averting a possible strike for now.

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 9-10.5 percent from a previously proposed 8-10 percent.

Employers have also offered to raise the minimum wage to 4,000 rand ($520) a month, the union said.

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

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 No. 2 producer.

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

Wage talks with bigger rival Anglo Platinum carry no strike threat yet.

COAL

South Africa's Chamber of Mines said it saw a good possibility of reaching a wage deal with workers in the coal mining sector on Tuesday, putting an end to week-long talks and strike threats.

South Africa's coal sector employers made an improved wage hike offer to workers of 9-11 percent last week, the NUM said.

The coal producers last offered a pay increase of 8.5-9.5 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 hike 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

Thousands of South African council workers -- including public transport workers, refuse collectors and licensing officers -- went on strike on Monday to press for wage hikes.

The South African Municipal Workers Union (SAMWU) and Independent Municipal and Allied Trade Union (IMATU), which say they represent 150,000 council workers, want a 15 percent wage hike to cushion their members as the country grapples with its first economic recession in 17 years.

They have rejected an 11.5 percent wage increase. Annual inflation was 8 percent in May.

PAPER, CHEMICALS

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

Main rail workers union, the South African Transport and Allied Workers Union (SATAWU), has called off a strike planned for July 28 to allow for further wage talks after state rail operator Metrorail raised its offer.

The United Transport and Allied Workers Union has yet to respond.

Metrorail has revised its offer from the previous proposal of between 7 and 8.5 percent but has not stated what the new offer is. 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. Most doctors are back at work even though some demands are yet to be met.

PUBLIC BROADCASTER

Workers at South Africa's public broadcaster SABC rejected the latest wage offer of 9.25-10.25 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 to 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 on Wednesday, after they agreed to a 12 percent wage increase.

DE BEERS

South African workers at De Beers, the world's No. 1 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 on Friday.

(Reporting by James Macharia, Muchena Zigomo, Agnieszka Flak and Shapi Shacinda)

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