Chemicals sector wage offer hiked

Johannesburg - South Africa's main chemical sector union said on Friday industry employers had raised their wage hike offer to 9% from 7%, which remains below the union's demand of at least a 10% rise.

Africa's biggest economy has been hit by a wave of strikes over wages, increasing pressure on new President Jacob Zuma who rose to power with union backing.

The strikes have so far had little impact on markets but analysts have warned that this could change if strike action continued for long and became more widespread.

The Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppawu) deputy General Secretary Thabane Mdlalose said the strike, which began on Monday, would continue while the union consulted its members.

"They have raised their offer to nine percent but it is still not what we have been expecting... we don't think we will get an agreement now, but we need to take it to our members and have them decide," Mdlalose told Reuters.

The union expects to meet with employers on Saturday or Sunday, he said, adding that talks continued with employers in the pharmaceuticals and paper sectors, with the offers of 9.5% and 7.5%, respectively, unchanged.

African Oxygen (Afrox), Africa's biggest gas and welding firm, said it was monitoring the impact of the strike on its customers while it awaited the union's response.

"(Afrox) is in contact with customers that are affected. Priority has been given to medical facilities normally supplied from Afrox operations where personnel are on strike," said spokesperson Simon Miller.

Affected companies also include South African petrochemicals group Sasol and chemicals firm Omnia.

Municipal workers might strike from Monday over pay, which could keep tens of thousands of government employees from work across the country. Unions will announce their decision on Friday.

Workers in the gold and coal sectors will announce on Tuesday whether they accept an improved offer from mining firms.

South Africa's powerful unions helped propel Zuma to power in an April election on a pro-poor platform. But instead of an expected cosy relationship, they are using their most powerful weapon - strikes - to build on their influence.

Zuma has vowed to keep pro-business policies credited with fuelling Africa's biggest economy under predecessor Thabo Mbeki, but investors are watching for signs of rising union influence.

- Reuters