Miners' Union Suspends Sympathy Strike

Miners' Union Suspends Sympathy Strike

South Africa's largest union of miners has suspended a one-day sympathy strike to support more than three million state workers, who had down tools over increase pay and requiring more time to consider a new wage offer.

The state workers, who have been on a three-week strike, were expected to announce on Wednesday afternoon, whether or not they will accept a new government offer aimed at ending the action that has shut schools and caused chaos at hospitals.

However, the labour action planned for Thursday by the NUM and other unions in the country's largest labour confederation COSATU, which claims nearly two million workers, could have affected mining, manufacturing and other key industries.

Although the one day strike would not likely have had much of an economic impact, COSATU has threatened that if there was no resolution to the state workers' strike, all its group members could go on a prolonged strike.

Impact of strike so far

Financial traders have said the state workers' strike has hurt sentiment but so far has had no major impact on bonds or the rand currency. One prominent economist said it has cost the economy about $150 million a day.

The country's biggest firms, such as Anglo Platinum, Impala Platinum and Harmony Gold Mining, have stockpiles of ore and would not be seriously affected by a one-day work stoppage.

Government's proposals

The government had offered state workers, including teachers, nurses, customs officials and office clerks, a pay rise of seven point five percent and 800 rand a month for housing, but the unions are demanding an eight point six percent rise and 1,000 rand.

REUTERS/Williams/Yinka