FACTBOX-South Africa's economy facing wage strikes

Mon Jul 6, 2009 11:05am EDT
 
[-] Text [+]

July 6 (Reuters) - Africa's biggest economy is facing a raft of possible strikes in various sectors with unions demanding above-inflation increases, which employers say they cannot afford due to the hard times brought on by the global economy.

GOLD

South Africa's biggest union, the National Union of Mineworkers (NUM) has warned it could strike in the gold sector after rejecting a 7 percent wage increase from gold producers. It is demanding a 15 percent wage hike. South Africa's consumer inflation is at 8 percent. [ID:nLB813821]

Wage talks are now being handled through a mediator, and if the parties fail to agree, the union may strike. [ID:nLI858074]

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

A new two-year wage deal was due to take effect on July 1.

PLATINUM The NUM has also rejected a 6.5 percent wage offer by Impala Platinum (IMPJ.J), the world's second largest producer of the precious metal, after demanding a wage increase of 20 percent.

The NUM now wants a mediator to resolve the dispute, and has threatened a strike that will affect platinum output and prices.

Wage talks with bigger rival Anglo Platinum (AMSJ.J) are also ongoing without any strike threat yet. [ID:nLU596401]

2010 WORLD CUP

The NUM says 70,000 construction workers will strike from Wednesday over wages, halting work across the economy including on stadiums for the 2010 soccer World Cup.

Employers, including listed firms, failed in a bid to prevent the strike through legal action [ID:nL6179746]

PETROLEUM

A union covering the energy sector has said it may go on strike after failing to reach a wage deal with firms, including Sasol (SOLJ.J), BP (BP.L), Royal Dutch Shell Plc (RDSa.L), Total (TOTF.PA), Chevron (CVX.N) and state firm PetroSA [ID:nWEA8613]  Continued...

 

Featured Broker sponsored link