South Africa's National Union of Mineworkers (NUM) said on Monday it had reached a wage deal with employers in the coal sector to end a week-long strike that threatened supplies to power plants in Africa's biggest economy.
The deal was clinched as talks to end a strike on the country's gold mines were set to begin. At gold's current record levels that stoppage is seen costing the gold producers up to $25 million a day in lost output.
“They are going to be signing the offer ... the strike will be called off,” NUM spokesman Lesiba Seshoka told Reuters about the deal reached on the coal front. He did not give any details about the agreement but NUM had been seeking a 14 percent wage rise and employers were offering 6 to 8.5 percent.
Coal firms affected included Anglo Thermal Coal SA, Exxaro, Optimum Coal and Xstrata Coal.
The mounting impact of the country's yearly strike “season”, which has also hit the fuel, diamond and steel industries, was seen crimping growth in the quarter and possibly pushing an already stagnant economy into contraction.
Some 100,000 gold miners downed tools on Thursday, halting work at AngloGold Ashanti , Gold Fields and Harmony Gold at a time when bullion is at record highs.
Markets were also watching wage talks between unions and managers at Impala Platinum , the world's No. 2 producer of the precious metal, which were due to start around midday.
Impala and its larger rival Anglo American Platinum, which is also engaged in negotiations, together account for around two-thirds of global platinum output, so if strikes started there platinum prices are likely to rise.
A fuel strike that interrupted business and sparked panic buying at the pumps ended last week, but when workers go back to their jobs in one industry, labour strife flares in another.
The series of strikes highlight the difficult position of the ruling African National Congress, which is keen to attract foreign investment but is in a governing alliance with unions. - Reuters