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CEPPWAWU’s Petrol Strike Ends; Chemical Sectors Close, Kimberly Clark Recalcitrant

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1 August, 2011

In South Africa, the 18-day petroleum strike by 70,000 union members mostly from the Chemical, Energy, Paper, Wood and Allied Workers’ Union (CEPPWAWU) ended on 28 July, two days after the South African Petroleum Industry Association (SAPIA) presented satisfactory wage and other terms.

But strikes in three other bargaining councils aligned with the chemical industries continue with some hint that issues in the Pharmaceutical sector will get resolved today when CEPPWAWU and that industry association meet in government mediation. In the Glass sector, the employers’ association and unions representing 6,000 workers came to terms late on 28 July in a one-year settlement similar to the petroleum industry.

In two other sectors of the National Bargaining Council for the Chemical Industry, Industrial Chemicals and Fast-Moving Consumer Goods, the union still awaits dates for mediation as strikes continue. CEPPWAWU represents some 40,000 workers in total in Pharmaceutical, Industrial Chemicals, and the consumer goods sector. Some of the companies affected included Sasol, Adcock Ingram, Aspen Pharmaceutical, Pharmacare, Revlon and Colgate.

CEPPWAWU Members March in Johannesburg, 11 July

In the Wood, Pulp, and Paper sector, where workers employed by Sappi, Mondi, and others have been on strike since 14 July, talks mediated by the government’s Commission for Conciliation, Mediation, and Arbitration (CCMA) will take place this afternoon and an accord is expected. Settlement did come in Timber and Sawmilling on Friday, 29 July, where a nationwide strike began on 18 July. That agreement is now going to membership for their approval.

In Fibreboard and Particleboard, negotiations have yet to be scheduled. A walkout there began on 11 July.

In the Tissue and Allied Products sector, Kimberly Clark has been particularly troublesome. The American company has refused now to bargain. Many weeks ago, Kimberly Clark tabled a measly 4% wage increase for its 400 workers at two paper towel and tissue mills, nearly half the accurate inflation rate in South Africa.

CEPPWAWU National Policy Coordinator John Appolis told the ICEM that Kimberly Clark is firmly set on driving down wages and work standards for competition reasons. The company had bargained jointly with Nampak as part of an employers’ association in the Tissue and Allied Products sector in years past, but Nampak broke from the multi-employer talks due to Kimberly Clark’s bargaining-table recalcitrance.

Nampak settled with CEPPWAWU and other unions early in July for an 8% raise without workers striking.

In the Timber and Sawmilling settlement, CEPPWAWU successfully negotiating a first-ever maternity leave. That will see women get four months of protected leave, in addition to 12% of their salaries to supplement their mandated unemployment compensation. Also, the minimum wage rate in Timber and Sawmilling will increase from ZAR 1,500 (US$225) to ZAR 1,775 (US$266).

All wage settlements will be backdated to 1 July, including the much-publicized petroleum strike where some fuel shortages and panic buying brought wide, albeit over-stated South African press coverage.

In petroleum, the unions and SAPIA agreed to an 8.5% increase, with a 10% hike gained for lower-waged workers. For them, the minimum salary increases from ZAR 4,000 (US$600) per month to 4,400 (US$660), while the unions maintained a 40-hour work-week. Women in the petroleum sector will receive a first-ever two days of leave for pre-natal maternity care.

“On the wage front,” said Appolis, “our improvements are slightly ahead of current buying power in South Africa, and we showed progress in several other areas.” Besides the majority CEPPWAWU, others unions in these sector talks include the South African Chemical Workers’ Union (SACWU), the General Industrial Workers’ Union of south Africa (GIWUSA), and Solidarity.