Main South African power union threatens to strike over wages; strike could start next week

South African power union threatens to strike

JOHANNESBURG — The main union at South Africa’s monopoly power supplier said Wednesday it’s ready to strike after rejecting the company’s wage offer, a decision that could disrupt the World Cup.

The announcement of a strike by the National Union of Mineworkers, which says it represents 20,000 of the 30,000 Eskom workers, comes as the World Cup enters its quarterfinals. The NUM said the strike will start next week but it did not say which day.

Trade unions wield strong influence in South Africa since many are affiliated with the powerful Congress of South African Trade Unions, an ally of the governing ANC party.

The smaller Solidarity union said Wednesday it has revised its demands and has given Eskom until Monday to consider the new proposals. A third union says it was still discussing its position regarding the possible strike.

The unions demand 9 percent wage increase. They have rejected Eskom’s offer of 8.5 percent and 1,000 rand ($130) housing allowance for the lowest wage earners.

Solidarity’s general secretary, Flip Buys said the union’s revised version calls on Eskom to give employees the option of striking. Presently, the employees are forbidden from striking because Eskom is classified as an essential service.

Solidarity also wants a housing allowance for all Eskom employees, and a probe into what Buys calls “serious labor problems” at Eskom.

“Solidarity is convinced that a settlement is within reach, provided that Eskom was willing to consider the revised demands,” said Buys.

NUM’s spokesman Lesiba Seshoka said his union would embark on strike regardless of the prohibition. He says the union has served Eskom with a strike notice.

A strike could mean power failures during the World Cup, but all the stadiums have generators.

South Africa experienced nationwide power blackouts in 2008 after Eskom management failed to budget for the renewal of its ailing infrastructure and maintenance.

The power supplier was offered a 27 billion rand ($3.5 billion) loan by the World Bank early this year to help it install new power plants.

Eskom spokesman was not available for comment. In a statement earlier, Eskom described the unions’ demands as “unaffordable.” It said the demands would cost the company around a billion rand ($130 million).