Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Striking South African unions considering latest offer

Published 07/22/2014, 08:12 AM
Updated 07/22/2014, 11:00 AM
Striking South African unions considering latest offer

Striking South African unions considering latest offer

JOHANNESBURG (Reuters) - South Africa's largest union will consider the latest government wage proposal, it said on Tuesday, raising hopes of an end to a three-week strike in the metals and engineering sectors that has sapped the continent's most advanced economy.

"We will look at the offer this afternoon," Irvin Jim, the general secretary of the National Union of Metalworkers of South Africa (NUMSA), told Reuters. Over 200,000 NUMSA members downed tools on July 2.

Gideon du Plessis, general secretary of the Solidarity union, told Reuters that NUMSA and four other smaller unions which have joined the strike had agreed to consider the latest offer with their members and leadership committees.

Solidarity, which mostly represents skilled workers, has not been on strike but was present at Tuesday's talks.

South Africa's main metals employer body earlier said it had "reluctantly" accepted the government proposal.

The Steel and Engineering Industries Federation of South Africa (SEIFSA) said striking unions had until Friday to accept the offer, which it warned could lead to heavy job losses.

The stoppage has disrupted the supply of car parts and affected construction work at two crucial power stations for state utility Eskom [ESCJ.UL].

Under the proposal put forward by Labour Minister Mildred Oliphant, SEIFSA agreed to raise wages by between 7 percent and 10 percent over the next three years.

This would "inevitably lead to massive job losses" as companies sought to cut costs because they would not be able to pass on the increases to their customers, SEIFSA Chief Executive Kaizer Nyatsumba said in a statement.

The Federation also said it would not sign the agreement unless parts of South Africa's current wage negotiation guidelines were amended to scrap two-tier bargaining at the plant and national level.

© Reuters. Lonmin workers on strike react as they listen to President of South Africa's AMCU Joseph Mathunjwa at the Wonderkop stadium in Nkaneng township outside the Lonmin mine in Rustenburg

The industrial action has dealt a further blow to the ailing South African economy, coming almost immediately after a five-month strike by miners in the platinum sector.

(Reporting by Tiisetso Motsoeneng, Ed Stoddard and Xola Potelwa; Editing by David Evans)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.