JOHANNESBURG (Reuters) - Workers at diamond giant De Beers in South Africa said on Wednesday they would go on strike this week and negotiations in the coal mining sector have reached deadlock, increasing the threat of power supply disruptions in Africa’s largest economy.
Unions and employers across South Africa are locked in mid-year wage bargaining, known as “strike season”, and many labour groups are seeking increases well above the country’s 4.6 percent inflation rate.
The National Union of Mineworkers (NUM) wants a 15 percent rise in wages, while De Beers, 45 percent owned by mining firm Anglo American, has offered 7.5 percent and a one-off payment of 2,500 rand.
Unions said they would strike from Friday.
“The offers are totally unacceptable to us. We totally reject these,” said Peter Bailey, NUM’s chief negotiator at De Beers.
Since 2008, miners, factory workers, and steel workers have won pay rises averaging more than 10 percent a year, making themselves more expensive than other emerging market workforces.
Unions representing coal miners declared a deadlock with coal mining groups on Wednesday. That could lead to a strike in the coal sector, limit exports and threaten supplies to power plants that rely on coal for almost all of their power.
South Africa’s Chamber of Mines employer body said in a statement it was “deeply disappointed” by the unions declaring a deadlock.
“The companies have also clearly indicated to the unions that they were more than willing to continue to engage on the many demands in an attempt to reach settlement. However, the unions rejected this,” the Chamber said.
State-owned utility Eskom has said it has enough coal in stock to last 41 days.
The Chamber of Mines is negotiating on behalf of several coal miners, including Anglo Thermal Coal SA, Exxaro, Optimum Coal and Xstrata Coal.
The NUM is seeking a 14 percent wage increase in this sector, while employers offering 8.5 percent for the lowest-paid workers and 7 percent for others.
The ruling African National Congress party, in a governing alliance with the unions, is loathe to put pressure on workers, fearing it could antagonise its long-standing union allies who have supplied it with millions of votes.
In a separate dispute, tens of thousands of fuel sector workers have been striking for 10 days, delaying deliveries to filling stations and sparking panic buying in the country’s economic hub around Johannesburg.
The small but influential Solidarity union, which represents skilled workers at state-owned PetroSA and petrochemicals group Sasol, said it suspended its participation in the fuel strike and its members would return to work by Thursday.
“Everyone’s interests will be best served by ending the strike and resuming negotiations in all earnest,” the union said, adding that Solidarity was likely to return to talks with employers before the weekend to reach a deal.
Other fuel unions are still consulting members on a revised pay rise offer of between 8 and 10 percent, although they are unlikely to accept it.
Mxolisi Ratsibe, chairman of the National Petroleum Employers Association, an industry body, was hopeful.
“We are optimistic the end is in sight,” he said.
Police escorts are allowing some delivery trucks to get through picket lines, although scores of filling stations around Johannesburg have run dry.
Fuel industry employers include BP Plc, Royal Dutch Shell, Engen, Chevron and Total.
