* Ten-day strike to continue - sources
* Workers demanding 12-15 pct rise
* NUMSA to announce decision on Sunday
(Adds NUMSA comments)
By Wendell Roelf
CAPE TOWN, July 11 Regional branches of the
National Union of Metalworkers of South Africa (NUMSA) have
rejected the latest wage offer from employers, two union sources
said on Friday, potentially drawing out a 10-day strike that is
already hurting production.
The stoppage by 220,000 NUMSA members comes hard on the
heels of a five-month strike in the platinum mining sector that
dragged Africa's most advanced economy into contraction in the
Union members downed tools on July 1 demanding pay rises of
12-15 percent. In their latest offer, employers proffered a 10
percent wage increase this year, 9.5 percent in 2015 and 9
percent the following year, officials said.
NUMSA branches in seven of South Africa's nine provinces had
chosen not to accept the offer, one of the NUMSA officials said.
"We are still open for engagement with the employer and the
strike is continuing," one of them told Reuters.
The rand currency weakened slightly after the news.
NUMSA spokesman Castro Ngobese declined to comment on the
report, saying that the union's formal decision would be
announced on Sunday.
"We are still busy with feedback," Ngobese said.
The sector's main employers' group, the Steel and
Engineering Industries Federation of South Africa (SEIFSA), said
it was yet to receive an update from NUMSA.
The walkout has hit components factories supplying U.S. car
manufacturer General Motors' South African plant, which
has been forced to stop production for a week.
This year's industrial unrest has hurt the economy and hit
South Africa's reputation as an investment destination, with
SEIFSA saying the local head of U.S. vehicle maker Ford Motor
was under pressure from head office to sell up its
However, Ford, which has invested over 3.4 billion rand
($317 million) in two plants producing the Ranger pick-up truck
for the domestic market and export to nearly 150 foreign
markets, says it is committed for the long-term.
A four-week strike last year by more than 30,000 NUMSA
members at major automakers cost the industry around $2 billion.
($1 = 10.7165 South African Rand)
(Writing by Helen Nyambura-Mwaura; Editing by Ed Cropley)