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UPDATE 1-South African fuel strike ends as union signs new pay offer

Wed, 17th Aug 2016 16:07

(Adds union quotes, details)

CAPE TOWN, Aug 17 (Reuters) - South Africa's petroleumsector employers and striking workers signed a new two-year wagedeal on Wednesday, ending a three-week strike that causedlimited supply disruptions, an official representing employerssaid.

Around 15,000 striking workers affiliated to Chemical,Energy, Paper, Printing, Wood and Allied Workers union(CEPPWAWU) went on strike at refineries and fuel depots operatedby BP, Shell, Chevron and Sasol, among others.

The two parties agreed a 7 percent wage increase this yearand an April CPI plus 1.5 percent hike in the second year, saidZimisele Majamane, the deputy chairman of the National PetroleumEmployer's Association.

"The strike will be called off today and employees will haveuntil Monday to get back to work," Majamane told Reutersfollowing mediation by the state labour authorities.

The workers had demanded a 9 percent one-year wage deal, andlaunched the strike on July 28 when employers declined.

Employers were offering a 7 percent raise in the first yearand an inflation-linked increase plus 1.5 percent in 2017, whichthe workers eventually accepted.

The work stoppage had limited impact in Africa's mostindustrialised economy which depends on refined petroleumimports to meet demand, with minor fuel supply disruptionsreported in Gauteng province, which includes the capitalPretoria and commercial-hub Johannesburg.

"The strike has been called off," said Clement Chitja, headof collective bargaining at CEPPWAWU.

Chitja had said on Thursday that the Commission forConciliation, Mediation and Arbiration, a state agency, wasfacilitating talks to end another strike by 8,000 workers in thepharmaceutical sector.

The workers are seeking 9 percent one-year increase, farabove inflation currently running at 6.3 percent.

Policymakers have warned that such wage increases are adanger to an already weak economy forecast by the central bankto record a zero percent growth rate this year. (Reporting by Wendell Roelf; Editing by James Macharia)

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