South Africa coal miners start massive strike

South Africa coal miners start massive strike

South African coal workers on Monday went on strike to seek 14 percent wage increase.

Hundreds of thousands of workers across the country have downed tools in recent weeks, or are threatening to do so seeking raises double or triple the five percent inflation rate in the mid-year bargaining session known locally as "strike season".

No immediate impact

However, power utility Eskom, which is run by the state, said the stoppage would not have an immediate impact on plants providing electricity to Africa's largest economy.

"We've got on average 38 days of coal stockpiles at the power stations," spokesman Tony Stott said.

"If the strike goes for a long time and demand goes up due to cold weather, it would put the system under severe strain," he noted.

No plan for fresh talks

Report says Eskom relies on coal for most of its power generation.

The spokesman for the National Union of Mineworkers (NUM), Lesiba Seshoka, said employers have offered pay rises of 7 to 8.5 percent.

The union said there were currently no plans for fresh talks.

Political pressure

Information gathered revealed that Eskom is facing political pressure to settle with workers.

The country's ruling African National Congress is allied with organised labour and wants to placate its millions of voters.

Employers over the past two years have struck wage deals averaging about eight percent, with many firms seeing the above-inflation settlements as a necessary cost of doing business in South Africa, a survey said.

Eskom is also facing strike threats from NUM members among its own workforce seeking a 16 percent wage increase.

In another dispute, the NUM is also seeking a 14 percent wage rise from gold mining companies.

REUTERS/Shakira