The chief negotiator from the National Union of Mineworkers said on Monday he did not see an imminent strike at Eskom, which has offered an increased 10,5% wage rise.
NUM was consulting members on the offer from Eskom, which generates 95% of South Africa’s electricity and 45% of Africa’s power output.
The threat of power cuts — which would be a challenge to President Jacob Zuma’s authority — helped drive up prices of platinum and palladium last week and partly pushed the rand to a three-week low on investor worries about the impact on the recession-hit economy.
Blackouts early last year temporarily crippled mine output, metal smelters and manufacturing, denting economic growth.
”Our assessment at this point in time is that there is mixed feelings. Members will not easily ignore the 10,5%, however the issue of a housing allowance is very problematic,” National Union of Mineworkers (NUM) chief negotiator Paris Mashego told Reuters.
”I haven’t received a report from Cape Town, Eastern Cape, Polokwane and the Nelspruit area [but] if there are divisions we normally don’t go into a strike in that situation because it might destroy the union.”
”If I can get two or three more reports from other regions, then I will know exactly whether we will have a strike or not, but I don’t think we will go to a strike at this point in time,” Mashego added.
The union, which has about 16 000 members at Eskom, about half of the utility’s employees, as well as smaller unions Solidarity and the National Union of Metalworkers (Numsa) want a 14% wage hike — about double the inflation rate — and a bigger housing allowance.
Eskom has increased its offer to 10,5% from 8%.
Eskom spokesperson Andrew Etzinger said the negotiating parties would meet again on Wednesday after unions consulted members.
”We have been flexible, we put an offer on the table and it’s now up to the trade unions to assess the offer and we start on Wednesday again,” he said, adding Eskom did not expect any strike action before then.
Etzinger said last week the firm had contingency plans to deal with any work possible stoppage.
South Africa is by far the world biggest platinum producer and also a major gold supplier.
A power strike would add pressure on Zuma as he tries to lead the regional powerhouse out of its first recession since 1992 and reassure angry residents in poor townships that his government is working to give them adequate housing, electricity and water.
A strike at Eskom would be the latest in a wave of industrial action that has led to above-inflation settlements, including agreements in the gold and coal industries.
The government also awarded a 13% wage hike to council workers last week, nearly double the inflation rate of 6,9% for June, to end a five-day strike.
Further above-inflation settlements would worry investors concerned that Zuma could adopt populist policies, bowing to pressure from powerful labour union allies.
Last week, the NUM said the three unions involved in talks with Eskom had agreed to undertake joint mass action, including a march on Eskom’s headquarters on Thursday, if the wage and housing dispute was not resolved. – Reuters