Tuesday, August 16, 2011

South African Strikes in Mining, Municipal Sectors

Strikes continue in mining, municipal sectors

JOHANNESBURG, SOUTH AFRICA
Aug 16 2011 07:55

More than 200 000 municipal workers walked off the job on Monday, a trade union said, in a strike which intensifies labour strife that has rocked Africa's biggest economy.

However, the South African Broadcast Corporation reported that more than 85% of workers from the South African Municipal Workers Union (Samwu) had boycotted the strike because of corruption within the "dysfunctional" provincial leadership.

Their employer, the South African Local Government Association (Salga), said it was pleasantly surprised by the number of union members who arrived for work.

"We somehow expected it. We had put contingencies in place if the eventuality arose where we were overwhelmed ... but there was not too much buy-in in Gauteng at least," said operations chief Lance Joel.

He said if Gauteng did not attract strikers, it would be difficult to do so in any other province.

Samwu general secretary Mthandeki Nhlapo said he could not comment on participation until he had received feedback from provinces.

Double-digits only

Samwu has formally asked for a wage increase of 18%, well above the 5% inflation rate, and have said they will not settle for less than a double-digit increase. Employers have offered 6%.

"In all likelihood, municipal workers will not get 18%," Samwu spokesperson Tahir Sema told Reuters. "We do have a bottom line position of 10%. We are not willing to compromise or settle for anything less than 10%."

No talks are planned with the employers.

Samwu said 145 000 of its members joined the strike along with more than 55 000 from other unions. Its previous rallies have been punctuated by members parading through urban centres, overturning rubbish bins and spreading litter on streets.

Most of the disputes in the current, annual mid-year bargaining session, known locally as "strike season", have been settled with deals for 7% to 10% wage increases.

Economists have said settlements well above inflation make the country less competitive by pushing up the cost for a workforce already more expensive and less efficient than its emerging market rivals.

Employers have responded by cutting jobs in a country where unemployment is already running at 25%.

The ruling African National Congress, in a governing alliance with organised labour, does not want to antagonise a group that has supplied it with millions of votes by pushing workers to accept more modest pay hikes.

Platinum and electricity

In other wage disputes, platinum miners and union members of state utility Eskom have been in talks with employers, who are trying to head off strikes in the two vital sectors.

Talks are expected this week between the powerful National Union of Mineworkers (NUM) and the world's top two platinum producers, Anglo American Platinum and Impala Platinum (Implats).

Since South Africa is the biggest producer of the precious metal used in jewellery and catalytic converters for cars, any strike would probably have an impact on global platinum prices.

The NUM said on Saturday that Implats had improved its pay rise offer to between 8% and 10%, but the labour group wants bigger, double-digit, increases.

NUM members at Eskom and two other unions plan a meeting on Tuesday on whether to accept a 7% offer from the utility that supplies nearly all of the country's power. The unions, which won hefty wage hikes last year, have been seeking 13% this year.

Any significant pay rises would affect the utility's strained balance sheet and could lead to further steep rises in electricity tariffs.

Exxaro

Meanwhile, the NUM on Monday rejected the latest pay rise offer from Exxaro Coal.

The union said in July it was demanding a 14% rise in wages from Exxaro operations not represented by the chamber of mines.

On Monday the union said the company had offered wage increases of between 8% and 10% depending on worker's category. The offer was for two years, it said.

"The NUM has rejected these offers ... The NUM will approach the Commission for Conciliation, Mediation and Arbitration for conciliation," the union said in a statement. -- Reuters, Sapa

Source: Mail & Guardian Online
Web Address: http://mg.co.za/article/2011-08-16-strikes-continue-through-mining-municipal-sectors

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