SAfrica unions, gold firms meet mediator on wages

* Unions say will strike if mediator talks fail

* Mediator averted strike in 2007 in last minute talks

JOHANNESBURG, June 17 (Reuters) - South African mineworkers' unions and gold producers met on Wednesday with a mediating authority in a bid to prevent a strike over union demands for a wage increase, which gold companies say they cannot afford.

Three South African mineworkers unions last week said they had hit deadlock over the wage talks with gold producers, and said a strike was inevitable in the sector should the appointed mediator fail to reconcile the parties over the wage demands.

Elize Strydom, an official of the Chamber of Mines who negotiates on behalf of gold mining companies, said the first meeting with the Commission for Conciliation, Mediation and Arbitration (CCMA) was taking place on Wednesday.

Gold producers, including AngloGold Ashanti (ANGJ.J), Gold Fields (GFIJ.J) and Harmony (HARJ.J), the world's third, fourth and fifth biggest producers respectively, negotiate as one under the Chamber of Mines. They would likely be in the line of fire should a strike take place, similar to 2005.

"We are busy engaging each other under mediation with the CCMA," Strydom told Reuters.

"The mediator is trying to find out what are the issues that are outstanding between the parties, and is talking to the three unions and will later talk to the Chamber of Mines."

She said it was likely more meetings would follow between the union and the Chamber as they try to find common ground.

The National Union of Mineworkers (NUM), South Africa's biggest labour group and the smaller traditionally-white Solidarity union last week rejected an improved offer of 7 percent from gold producers, and called in a mediator.

Smaller union United Association of South Africa (UASA) also rejected the gold producers improved offer.

Mine workers have demanded a 15 percent pay rise, well above South Africa's consumer inflation of 8.4 percent.

A new wage deal is due to take effect on July 1.

The unions say their wage demands can be met because the price of gold has risen despite the global economic downturn.

But South African gold producers say they can't afford the wage demand plus requests for additions to worker's allowances by unions which represent a total demand of 28 percent.

(Reporting by James Macharia, Editing by Peter Blackburn)