Strike to affect stadium construction
Reuters - Tuesday 30 June 2009, 14:00
JOHANNESBURG - South Africa's biggest
union said on Tuesday 50,000 construction workers would launch a
strike over pay from next Wednesday, halting work across the
economy including on stadiums for the 2010 World Cup.
A prolonged strike could cause the partial shut down of an
economy in recession and could scare foreign investors.
Several sectors in Africa's biggest economy are holding wage
negotiations, some of which cover a two-year period, and unions
are demanding above-inflation increases.
Employers have balked at the demands, with consumer
inflation at 8 percent, citing the global economic downturn.
As well as World Cup infrastructure, the construction strike
could halt work on the mass transit Gautrain high-speed rail
project, power stations, an airport, a refinery, a coal
terminal, hospitals, highways and mining projects.
The National Union of Mineworkers (NUM), which also
represents construction workers, said in a statement it had
served the construction sector's employer body with a notice to
go on strike after prolonged wage talks collapsed last Friday.
"A strike action is set to begin on July 8," Lesiba Seshoka,
the NUM's spokesman said.
"Its not just the World Cup stadia that will be affected, we
are talking about power stations, hospitals, roads and the like.
It will last until they (the employers) come to their senses and
offer a 13 percent wage increase for one year."
The NUM said it had lowered its wage demand to 13 percent
for a one year agreement whilst employers had offered a 10
percent increment for the first year.
The employers' organisation was not available to comment.
THUMBS UP
Over the past two weeks, South Africa has staged the
Confederations Cup, a test event for the World Cup, which
whetted the appetite for the main event, but a lot of work was
still pending, including completing building works on stadiums.
FIFA president Sepp Blatter gave organisers of the
Confederations Cup a mark of 7.5 points out of 10 on Monday.
There was no immediate comment from the government on the
possibility of a strike, but earlier on Tuesday it said the
success of the tournament had put to rest all doubts that South
Africa would deliver a successful 2010 FIFA World Cup.
In a statement, it said the stadiums used for the
Confederations Cup had met all the requirements, while five
others would be completed soon.
"Government remains committed to delivering on all the
guarantees for the 2010 FIFA World Cup. The other remaining
stadiums ... are nearing completion," it said.
The union said many companies would be hit if the strike
went ahead.
Seshoka said Africa's top construction and engineering firm
Murray & Roberts Holdings Ltd, WBHO and Group Five could have
their work affected.
South Africa's state-owned utility Eskom's 4,800 megawatt
Medupi power station could also be affected, slowing efforts to
fill a chronic power shortage in the country.
Expansion work on the coal export facility, Richards Bay
Coal Terminal could be delayed further, the union said.