11 August, 2009
A full season of biannual wage negotiations is nearly complete, following several fierce but short strikes in a handful of ICEM sectors. Other sectors, including public service and the construction trades witnessed raucous strikes in July.
In mining, the National Union of Mineworkers (NUM) settled major gold and coal contracts covering 200,000 miners without strikes, while another ICEM affiliate, the Chemical, Energy, Paper, Printing, Wood, and Allied Workers’ Union (CEPPWAWU) was forced to take industrial actions against companies in the chemicals, pulp and paper, pharmaceutical, and fast Moving Consumer Goods in order to achieve wage objectives.
One set of negotiations that remains contentious is in electricity, with ICEM affiliates NUM and the National Union of Metalworkers of South Africa (NUMSA) poised to take protest and industrial actions this week against Eskom. The state-run utility, Africa’s largest electrical provider, and the unions are not far apart in negotiations, talks now being conducted by South Africa’s Commission for Conciliation, Mediation, and Arbitration (CCCM).
The agency presented a mediated offer of 9.5%, but the unions, including a third one, seek an increase in housing allowances on top of a first-year 9.5% increase. Eskom has remained fixed on offering only 8%, but that is likely to change this week as industrial actions draw closer. Some 29,000 workers are employed at Eskom, with NUM representing 16,000 and NUMSA covering 5,000. On 5 August, the two unions held a joint strategy meeting and charted a common course of action for the coming days. It will start with a march and mobilisation scheduled for Thursday this week, 13 August.
It is unclear what shape industrial actions will take against Eskom since, by law, the power generator and supplier is considered an essential service. A majority of workers at Eskom would be exempt from striking. But the unions are prepared to stretch the law in order to win fair wage gains. “Our workers are angry, they are very angry and they are prepared to get fired by Eskom if need be,” said NUM’s Eskom Chief Negotiator, Paris Mashego.
Elsewhere in South Africa, wage discussions that now are complete show better than inflation gains. The Consumer Price Index had been 8% or higher during most of the second quarter, but dropped to 6.9% late in June. The rand has weakened of late, which should help the country’s export-oriented economy and the major hope is that the jobs situation will improve.
CEPPWAWU used nine-day rolling strikes against several employers to win wage increases ranging from 8% to 10% for 45,000 workers. Companies that faced walkouts included industrial chemicals firms Sasol, Omnia, and Afrox; pulp and paper producers Sappi and Mondi; pharmaceutical companies GlaxoSmithKline, Pharma, and Indigo Cosmetics; and Fast Moving Consumer Goods, such as Unilever, Colgate, and Tiger Brands. Strikes lasted from 20 July to 29 July.
CEPPWAWU negotiates with industry associations or companies in ten separate areas, including petroleum, glass, sawmilling, tissue and allied, particle board, and Sasol Mines. In petroleum, a two-year accord was reached with such companies as BP, Shell, PetroSA, Engen, and Chevron’s Caltex without a strike. The agreement calls for a 9.5% increase effective 1 July, with another 0.5% hike coming in January 2010 that will be based in June 2009 wages.
In 2010, petroleum workers will receive the South African inflation rate then, plus 1.5%. They will get another 0.5% increase in January 2011.
A priority for CEPPWAWU in this set of talks was extending paid maternity leave, and abolition of labour brokers and upgrading jobs held by casual workers to permanent status. In pharmaceuticals, where 10% gains were realised, and in Fast Moving Consumer Goods, maternity leave was extended to six months, at 33% of pay.
As for the NUM, the gold and coal contracts were concluded for the first time without dispute resolution involvement by the CCCM. On 28 July, NUM settled with the mining houses in both sectors. In gold, with AngloGold, Harmony, and Goldfields leading the way, miners will see 10.5% for lower-classified staff and 9% for those in the higher categories. In 2010, the increase will be inflation plus 1%, with a minimum increases of 7.5% guaranteed.
In coal mining, where BHP Billiton, AngloAmerican, and Xstrata dominate, lower-tiered miners receive 11% retroactive to 1 July, with higher classified workers getting 9%.
The NUM is in dispute with Murray and Roberts, a contract mining and construction services company, and with Two Rivers Platinum, jointly owned by African Rainbow Minerals and Impala Platinum. Talks with the major platinum producers are continuing.
Fierce strikes were waged by the NUM in mid-July against construction companies, specifically on the FIFA 2010 World Cup stadium, and by the South African Municipal Workers’ Union (SAMWU) late in July. Satisfactory wage terms were reached in both, ending the strikes. The Communications Workers Union (CWU) is still in dispute with several companies, including Telkom.