* Smaller unions say new wage offer on the table
* Increases are for 8 or 10 pct, depending on pay grade
* Opposition from main NUMSA members would delay resolution
* Unions and employers due to meet on Tuesday
(Adds further details and background)
By David Dolan
JOHANNESBURG, July 20 Labour unions representing
striking South African metalworkers have submitted a lower wage
demand to employers, union representatives said on Sunday, to
try to end the walkout battering Africa's most developed
More than 200,000 metal and engineering workers downed tools
at the start of the month demanding wage increases of between 12
to 15 percent and disrupting the supply of auto components and
construction work at two crucial power stations.
The walkout, coming just weeks after the end of a crippling
five-month strike in the platinum industry, is the latest blow
to South Africa's ailing economy and has further unnerved
investors impatient with waves of labour unrest.
Six striking unions have been meeting with employers this
weekend in an effort to end the strike that has forced U.S.
automaker Ford Motor Co and others to halt production at
their South African plants.
The new proposal is for a three-year agreement with annual
increases of 8 or 10 percent depending on pay grade, said Johan
van Niekerk, a spokesman for the United Association of South
Africa, a smaller union in the talks.
"We're very close to each other," van Niekerk said. "By
Tuesday morning if we get a favourable response from employers,
it could be the end of the strike."
Both van Niekerk and Marius Croucamp, a spokesman for the
Solidarity union, which is participating in the talks because
its workers have been locked out by the strike, said the main
National Union of Metalworkers of South Africa (NUMSA) had
backed the proposal.
NUMSA General Secretary Irvin Jim confirmed there was "a
proposal on the table" but he declined to give further details.
A spokeswoman for the main employer group was not
immediately available for comment.
NUMSA AGREEMENT CRITICAL
The unions are due to canvass their own members about the
proposal on Monday, although the demand is within a previously
mandated range, van Niekerk said, with unions and employers due
to meet again on Tuesday.
But any last-minute opposition from NUMSA would delay an end
to the stoppage, as the dominant union in the strike.
South Africa's main manufacturing union, NUMSA previously
rejected an offer from employers for an increase of 10 percent
followed by 9.5 percent in 2015 and 9 percent a year later.
Jim said last week that NUMSA members - who tend to be lower
skilled and lower paid than members of the largely white
Solidarity - would not accept less than a 10 percent annual rise
over three years, saying black workers were underpaid.
South Africa's government is concerned about the state of
industrial relations, the finance minister said on Thursday.
The economy contracted in the first quarter of the year,
dragged down by the five-month platinum strike that slashed
output from the world's three largest producers.
The metalworkers strike is likely to keep second-quarter
growth depressed, although the central bank governor, Gill
Marcus, has said she did not expect a recession.
(Reporting by David Dolan; Editing by Rosalind Russell)