Johannesburg - A potential strike by Rand Water employees could see water supplies for Gauteng and parts of North West, Free State and Mpumalanga come to a standstill - affecting more than ten million people.

On Monday, the South African Municipal Workers Union (Samwu), along with a minority union Ausa, said over 2 000 employees could down tools if they do not get an 18%, or R700 (whichever is the greater), wage increase this year.

This means that in Gauteng alone, over nine million people will be affected if the strike had to go ahead.

According to data on the department of water affairs and forestry's website, 9.39 million people living in three metropoles and three districts in Gauteng were served with free basic water (FBW) of 6 kilolitres per capita for the year to end-April.

A total of 2.57 million people were served with FBW in the Free State, as were 3.23 million people in Mpumalanga.

Samwu said that last week, negotiations were unsuccessful as management could only agree to up the wages by 9%. It also said a 9% increase is "unrealistic", given the current inflation and CPIX rate.

Statistics South Africa data show that the increase in consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the Reserve Bank (SARB) for its inflation-targeting policy, was up 10.4% year-on-year in April from 10.1% year-on-year in March.

Samwu said a 9% increase for the lowest paid Rand Water Board worker would mean an increase of only about R300 per month. This is "far below" the R700 that it has calculated workers need in order to cover rising costs of food and petrol, it said.

Currently, the price of petrol in Gauteng is at a record high of R9.96 a litre, while diesel in Gauteng costs R10.80 a litre.

Media reports claim that the petrol price will rise further in months to come, driven by a record oil price of $138 a barrel. This also has a direct impact on the escalating price of food globally.

"The skyrocketing petrol, food, and transport prices mean that 9% would be absorbed by travelling costs from home to work alone. In order to match the current food price hikes we need 18%," said Samwu negotiator Thabo Letsimo.

He said that the union is "readying for strike action".

"There is no way that we will accept any increase which does not talk to a monetary increase. The current 9% will only benefit the highest paid managers and directors," said Letsimo.

Nedbank economist Dennis Dykes said that water provision, along with other utilities, has been under pressure and a strike would be the last thing the country would want.

"It is obvious that a strike is always negative, and there is no doubt that it doesn't solve anything. If it can be avoided the better," said Dykes.

He said if the service is disrupted, the human cost would be "enormous" as it raises some health issues, adding that if Rand Water has a complete shutdown of water supply, there would be enormous ramifications.

"But they can't threaten to cut off a basic necessity - that would be in the category of a police or army strike," said Dykes.

"I can't see it happening though, but having said that, we have seen some amazing things lately," said Dykes.

Samwu said the next round of wage negotiations takes place on June 11, 2008.

- Fin24.com