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S.Africa coal miners raise wage offer - union

Thu Jun 18, 2009 10:13pm IST
 
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JOHANNESBURG, June 18 (Reuters) - South Africa's Chamber of Mines has raised its offer for wage increases in the coal mining sector to between 8 and 9 percent from 6.5 percent, the Solidarity union said on Thursday. Wage talks in South Africa's mining sector are watched closely by markets because there is a chance of disruption in output should workers go on strike and as any wage hikes are likely to boost production costs for mining companies.

The union has demanded a 15 percent pay hike, far above the country's last measured inflation rate of 8.4 percent, but the coal firms, represented in the negotiations by the chamber, say they are unable to offer more due to the tight global economic climate. "Today huge progress was made in the fourth round of negotiations ... the chamber's offer will be taken to the workers for discussion," Solidarity spokesman Jaco Kleynhans said in a statement.

The chamber has offered an 8 percent wage increase for miners, artisans and officials, and an increase of 9 percent for other employees.

Wages in the sector are negotiated every two years and the offer for the second year is South Africa's inflation rate as established for three months prior to July 2010, plus an additional 1 percent for all category employees.

The next round of negotiations is due on June 30. (Reporting by Agnieszka Flak; Editing by Keiron Henderson)

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