Sappi, Mondi in wage deadlock

Johannesburg - Paper and packaging producers Sappi and Mondi on Wednesday remained tight-lipped about the progress of their wage negotiations with labour unions. The National Bargaining Council for the wood and paper sector (NBCWPS) said, considering present economic conditions, the matter was fraught with difficulties.

The Chemical, Paper, Printing, Wood and Allied Workers' Union (Ceppwawu) said in a press release Mondi and Sappi seemed unlikely to budge from their proposed wage increase of no more than 4.5%.

On Tuesday Ceppwawu demanded a 17% wage increase for its members and a shift allowance of 12% across all shifts.

Linda Dlamini, general secretary of the NBCWPS, said: "It's never easy to sort out these kinds of matters". However, she remained positive that both parties were committed to finding a solution.

In response to Ceppwawu's demands, Mondi said: "These negotiations take place under the auspices of the NBCWPS, and it is too early for Mondi to comment directly."

Ceppwawu threatened both Mondi and Sappi with industrial action, as a the union had received official sanction to strike with 48 hours' notice.

Ceppwawu's coordinator for paper and pulp producers Sydney Kunene said the union would be willing to negotiate down from its proposed 17% wage increase, but would not go lower than the consumer price index (8%).

"This figure (4.5% increase offer) would put our members in a precarious financial position," Kunene said.

- Fin24.com