Unions say coal strike looms

Unions seeking 14%, mines offer 5-6%

South Africa’s Chamber of Mines said on Thursday that three unions representing employees in the coal mining sector have threatened to strike over wages.

The largest of them, the National Union of Mineworkers (NUM) said talks with the Chamber on Thursday could decide if a strike by as many as 250,000 of its workers was necessary.

NUM had been seeking a 14% wage increase, about triple the inflation rate, while the chamber said it had upped its offer to 6% to the lowest paid employees and 5% for the rest.

“The decision to declare a dispute followed the Chamber’s request that unions consider withdrawing some of the demands which had significant cost implications so that the coal mining companies could devote available resources to wages,” it said in a brief statement.

The unions were not immediately available for comment.

The mining body said it planned talks with unions on July 20 with a government mediator.

The Chamber of Mines is negotiating on behalf of several coal miners, including Anglo Thermal Coal SA (AAL.L), Exxaro (EXXJ.J), Optimum Coal (OPTJ.J) and Xstrata Coal (XTA.L).

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