SAfrica steel firms, striking union reach deal

Fri Jul 15, 2011

* Steel workers to abandon strike from Monday
* Fuel sector strike rumbles on
By Agnieszka Flak

JOHANNESBURG, July 15 (Reuters) - South African steel and engineering firms reached a wage deal with the National Union of Metalworkers of South Africa (NUMSA) to end a two-week long
strike, a union official said on Friday, while a fuel sector strike showed no signs of ending.

Tens of thousands of steel workers downed tools nearly two weeks ago demanding a 13 percent wage rise -- almost three times the inflation rate and nearly double the employers' offer of 7
percent.

The companies and NUMSA met late on Thursday to discuss a proposal meant to bring them closer.

"There was an agreement reached last night," Lucio Trentini, operations director at the SEIFSA industry body, said. "The most important thing is that the agreement ends the two-week long
strike in the industry."

Workers are expected to start returning to work from Monday, and details of the settlement will be released next week, he added. Production and financial losses from the strike are expected to be substantial.

Strikes spread this week as several sectors joined industrial action in the petrol industry that has raised concerns about fuel supplies in Africa's biggest economy.

Tens of thousands of fuel workers began walking off the job on Monday, delaying deliveries and sparking panic buying at service stations in the economic hub of Gauteng province, which
includes Johannesburg.

Refineries are still operating and petrol is being delivered to most filling stations but a prolonged and widening strike could hurt the transport sector and impact economic growth.

Economists said the cost of the strike could run into the billions of rand should it continue into next week.

The Chemical, Energy, Paper, Printing, Wood and Allied Workers Union union said talks with employers were scheduled for Monday.

The latest to join the wave of strikes were 2,000 workers from Pioneer Food Group's Sasko Grain unit, the Food and Allied Workers Union said on Friday.

Unions and employers are locked in their mid-year bargaining session known as "strike season", with many labour groups seeking wage increases that far exceed inflation.

Central bank and Treasury officials have said high wage increases threaten the outlook for inflation, interest rates and the long-term prospects for the economy.

Possible strikes also loom in South Africa's platinum, coal and gold industries, threatening global supplies of the keycommodities at a time when prices are red hot. (sourced Reuters)