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SouthAfrican coal miners on strike after wage talks collapse
October 5, 2015, 5:33 am

File photo of a NUM strike in 2014 [Xinhua]

File photo of a NUM strike in 2014 [Xinhua]

Thousands of South African workers began a strike in the coal sector on Sunday evening after their demand for higher pay was rejected by employers.

The National Union of Mineworkers (NUM), which organized the strike, said more than 30,000 workers were taking part in the strike which is expected to paralyse the coal sector.

The union called the strike after wage talks were deadlock due to employers’ rejection of a demand for a pay hike of 1,000 rand (about $73) for workers in the lowest paid category. The employers were offering 300 rand (about $22) instead.

The Chamber of Mines, which represents Glencore, Anglo American Coal and Exxaro, said last week that the coal producers had raised their offer to increase wages by up to 8.5 per cent for the lowest-paid workers, from 8 per cent previously.

The strike came as the country is facing a severe shortage of electricity, resulting in load shedding over the past few months. South Africa relies heavily on coal for electricity. Power stations have been forking out billions of rand to buy diesel to keep the lights on due to the shortage of coal. The strike is expected to make things worse.

The union’s spokesperson Nelson Ratshoshi said they were well aware of the impact of the strike.

“It will affect investors because any strike will affects investors. Even now the country is facing a serious economic challenge,” said Ratshoshi.

Coal mining in South Africa produces enough coal to account for 94 per cent of its energy production, according to the Chamber of Mines.

South Africa is one of the world’s top five coal exporters and the industry directly employs close to 90,000 people.

 

Source: Agencies