pmex
08-06-2009, 05:38 PM
STRIKE 'INEVITABLE'
SA gold and platinum mines could be hit as Eskom workers head for strike
South African mining sector could be hit hard as the country's main power utility workers are on course to go on strike next week. Gold and platinum mines could be badly affected should strike go ahead.
Author: By Peroshni Govender
Posted: Thursday , 06 Aug 2009
JOHANNESBURG (Reuters) - - South Africa's biggest union said its members planned to strike at power firm Eskom next week after rejecting a wage offer, raising the threat of electricity disruptions in Africa's largest economy.
The threat of a power shutdown in the world's top platinum producer helped drive the precious metal's price higher on fears output could be affected and raised concerns about damage to the South African economy, also a major gold supplier.
As well as the planned action by the National Union of Mineworkers (NUM), South Africa's metalworkers at Eskom also plan to strike next week if wage demands are not met, a union spokesman said.
Alex Mashilo said the National Union of Metalworkers of South Africa were "headed" for industrial action, and will "definitely" embark on a strike if no agreement is reached with the power company by the end of this week.
Another strike could hurt investor sentiment after a wave of industrial action in recent weeks that led to a series of above-inflation pay settlements.
The mineworkers' NUM, which has 16,000 members at Eskom, said a strike was inevitable and could start on Monday or Tuesday.
"We don't see how a strike can be avoided ... Our plan is to start mass action as early as next week," NUM spokesman Lesiba Seshoka said.
As well as disrupting the economy, a power strike would be a challenge to President Jacob Zuma's authority as he tries to lead South Africa through its first recession in 17 years and defuse anger in poor townships.
Under South African labour law, Eskom is classified as an essential service and that prohibits a large majority of its staff from striking. But the union has said it could go against the law because of the urgency of its members' demands.
Eskom said the chances of a settlement in the talks had improved, however. Unions are demanding a 14 percent increase and the utility is offering 8 percent -- above the current inflation rate of 6.9 percent annually.
(Additional reporting by James Macharia, Gordon Bell and Michael Georgy; Writing by Marius Bosch and Michael Georgy; Editing by Charles Dick)
© Copyright Thomson Reuters 2009 All rights reserved.
More... (http://www.24hgold.com/english/contributor.aspx?rss=true&article=2249071958G10020&redirect=true&contributor=Mineweb)
SA gold and platinum mines could be hit as Eskom workers head for strike
South African mining sector could be hit hard as the country's main power utility workers are on course to go on strike next week. Gold and platinum mines could be badly affected should strike go ahead.
Author: By Peroshni Govender
Posted: Thursday , 06 Aug 2009
JOHANNESBURG (Reuters) - - South Africa's biggest union said its members planned to strike at power firm Eskom next week after rejecting a wage offer, raising the threat of electricity disruptions in Africa's largest economy.
The threat of a power shutdown in the world's top platinum producer helped drive the precious metal's price higher on fears output could be affected and raised concerns about damage to the South African economy, also a major gold supplier.
As well as the planned action by the National Union of Mineworkers (NUM), South Africa's metalworkers at Eskom also plan to strike next week if wage demands are not met, a union spokesman said.
Alex Mashilo said the National Union of Metalworkers of South Africa were "headed" for industrial action, and will "definitely" embark on a strike if no agreement is reached with the power company by the end of this week.
Another strike could hurt investor sentiment after a wave of industrial action in recent weeks that led to a series of above-inflation pay settlements.
The mineworkers' NUM, which has 16,000 members at Eskom, said a strike was inevitable and could start on Monday or Tuesday.
"We don't see how a strike can be avoided ... Our plan is to start mass action as early as next week," NUM spokesman Lesiba Seshoka said.
As well as disrupting the economy, a power strike would be a challenge to President Jacob Zuma's authority as he tries to lead South Africa through its first recession in 17 years and defuse anger in poor townships.
Under South African labour law, Eskom is classified as an essential service and that prohibits a large majority of its staff from striking. But the union has said it could go against the law because of the urgency of its members' demands.
Eskom said the chances of a settlement in the talks had improved, however. Unions are demanding a 14 percent increase and the utility is offering 8 percent -- above the current inflation rate of 6.9 percent annually.
(Additional reporting by James Macharia, Gordon Bell and Michael Georgy; Writing by Marius Bosch and Michael Georgy; Editing by Charles Dick)
© Copyright Thomson Reuters 2009 All rights reserved.
More... (http://www.24hgold.com/english/contributor.aspx?rss=true&article=2249071958G10020&redirect=true&contributor=Mineweb)