Labour union Solidarity said on Wednesday it had declared a wage dispute in the country’s petroleum sector after negotiations failed.
The union said workers want a 13% pay rise, while employers in the sector are offering a 6% wage increment for this year and a rise of 1.2% above CPI inflation for 2012 and 2013.
A wage dispute could lead to a strike if further talks fail.
The negotiations are also about travel and housing allowances, among other things, the union said. Talks on the dispute will continue next week, it added.
Sasol, PetroSA and Engen are some of the biggest employers in this sector.
Solidarity said it represents around 1 500 employees at PetroSA and Sasol.
Unions across sectors have demanded double-digit wage increases, much higher than the current annual inflation rate of 4.2% in April. The Reserve Bank has warned about the impact of such wage settlements on inflation.
Some have asked for increases as high as 20%, using fast accelerating food and fuel prices to justify their demands. — Reuters