/ 9 July 2007

Metal, engineering sector set for strike

About 260 000 workers in the metal and engineering sector are due to launch a strike on Monday over a wage dispute, unions said on Sunday.

The open-ended strike will affect more than 9 000 firms, including Bell Equipment and the Scaw Metals Group, owned by mining group Anglo American, Solidarity union chief negotiator Johan Pieterse told Reuters.

Scaw makes steel products while Bell manufactures and distributes heavy construction and agricultural equipment. About 6 000 workers are due to stop work at Scaw and 3 000 at Bell, he said.

Primary steel makers Mittal Steel South Africa and Highveld Steel and Vanadium Corp are not directly involved because they negotiate wage deals for permanent employees separately, but operations at Mittal could be affected through its contract workers.

Pieterse said about 7 855 contract workers at Mittal are due to strike, including those who run the coke ovens and remove slag waste.

Talks hit a deadlock after firms offered a 7,3% to 7,8% wage hike against union demands for 10%.

Solidarity said the union would hold a rally on Monday highlighting skill shortages in South Africa, especially among artisans and engineers.

The government is in the midst of a big push to build infrastructure, including the Gautrain underground rapid-transit system and stadia for the 2010 World Cup. – Reuters