The Solidarity labour union said on Tuesday it had rejected an offer for a 6,5% wage increase made by coal producers.
The union has demanded a 15% pay hike for mineworkers, but the coal firms, represented in the negotiations by the Chamber of Mines, say they are unable to offer more due to the tight global economic conditions.
”The chamber’s memory is short and they are forgetting that two years ago Solidarity members went on strike for three days over scarce and critical skills in the coal industry,” Gideon du Plessis, the union’s labour relations head said in a statement.
”The chamber apparently thinks that the issue will simply disappear. However, they are severely mistaken.”
The coal companies said in a statement they had offered a 7,5% increase for lower category employees, and 6,5% for miners, artisans and officials.
The miners said they would also increase the medical incapacity benefit to R15 000 from July 1, with a further increase to R20 000 on July 1 2010.
”These are generous offers under trying economic conditions. The companies want to make progress as quickly as possible so that an agreement is reached,” said Frans Barker, who negotiates for the coal companies.
”In our view the negotiations today were very constructive.”
The wage negotiations are due to resume on June 12.
Wage talks in South Africa’s mining sector are watched closely by markets because there is a chance of disruption in output should workers go on strike.
Any wage hikes are likely to boost production costs for mining companies.
Official data on Tuesday showed the mining sector contracted by 32,8% in the first quarter, the biggest fall on record. – Reuters