WRAPUP 1-S.African unions flex muscles as strikes spread
* Union says gold strike seen "highly likely"
* Paper, energy, chemicals union to strike
* Construction workers near deal though hurdles remain
* Wave of strikes raises pressure on Zuma
By Agnieszka Flak and Alison Raymond
JOHANNESBURG, July 14 (Reuters) - South African unions announced strikes in the paper, energy and chemical industries and said action in the important gold sector was "highly likely", raising pressure on President Jacob Zuma.
South Africa's construction workers are nearing a deal with employers to end a strike that is holding up work on stadiums for the 2010 World Cup, but are still locked in talks with employers about efforts to block their right to strike again.
The wave of industrial action poses a challenge for President Jacob Zuma, who is grappling with the country's first recession in 17 years and has little room to meet the demands of union allies flexing their muscles since he took office in May.
Zuma was propelled to power partly by support from the ruling African National Congress's leftist allies, including the powerful trade unions. It has pledged to support poor elements of the population, but not at the expense of big business.
Analysts say his hands are tied by the economic slowdown, leaving him little room to placate unions who have been emboldened by his ascent to power.
Companies, too, are battling a slump in demand, and are under pressure from shareholders to curtail costs.
A South African union representing workers in the energy, paper and pharmaceuticals sectors said on Tuesday it would launch a strike over pay after wage negotiations with employers failed, threatening supplies of fuel and medicine.
Employers in the sectors include paper makers Sappi (SAPJ.J), Mondi (MNDJ.J) and petrochemicals group Sasol (SOLJ.J). [ID:nWEA0784]
GOLD STRIKE "HIGHLY LIKELY" Continued...

