S Africa Coal Indus Wage Talks Start; Union Threatens Strike
May 20 2009 - 12:20PM
Dow Jones News
Wage negotiations in South Africa's coal industry threaten to
sour after the country's largest mining union Wednesday held out
the threat of strikes following only the first official meeting
between the two sides.
The National Union of Mineworkers, together with trade unions
Solidarity and UASA, met with industry body the Chamber of Mines
with a list of demands that included an above-inflation 15%
increase in workers' wages.
The chamber, meanwhile, said that while the colliers it
represents tabled offers on some demands they needed further
information before a wage offer can be made.
"If this is going to be the attitude, then we have no option but
to approach our members for a mandate. If that mandate means strike
action, so be it," said NUM General Secretary Frans Baleni.
NUM spokesman Lesiba Seshoka said that with food price inflation
currently at 14.9%, the cost of living has risen too high for
blue-collar workers. He said the union has already begun
consultation with its members, but won't return to the bargaining
table until a wage offer is presented.
The Chamber of Mines, which represents companies including Anglo
American PLC (AAUK) and BHP Billiton Ltd. (BHP), in 2007 agreed
with the NUM wage rises of between 7.5% and 10% in the first of a
two-year deal and consumer price inflation plus one percentage
point in year two.
"Even though we have received a set of demands from the unions
that will result in excessive cost increases, employers in the
industry have been thinking of some creative ways in which to
improve terms and conditions of service on coal mines," said Frans
Barker, the chamber's negotiator.
He said he is confident both sides have the best interests of
the industry and the country at heart.
Solidarity spokesman Jaco Kleynhans said that with South Africa
pursuing large infrastructure development, the coal industry is in
a good position, yet workers are struggling with consumer price
inflation.
"Workers cannot receive a CPI increase, but they have to be
remunerated for their living costs," Kleynhans said. "Workers'
living costs are high."
Official consumer price inflation was 8.5% on the year in March
and the South African Reserve Bank has forecast it will continue on
a downward trend, averaging 5.4% by the final quarter of 2010. At
the same time, the economy contracted an annualized 1.8% in the
final three months of 2008, and is widely expected to have shrunk
again in the first quarter of this year.
The next round of wage negotiations will take place on
Tuesday.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com