Johannesburg - About 10 percent of Gauteng fuel stations experienced shortages as a result of Chemical Energy Paper Printing Wood and Allied Workers Union’s (Ceppwawu’s) ongoing strike over wage increases, the Fuel Retailers Association (FRA) said on Tuesday.
About 15 000 workers aligned to Ceppwawu went on strike on Thursday last week after a deadlock in the wage negotiations with the National Petroleum Employers’ Association (NPEA). The union wants a 9 percent wage increase over one year, while NPEA has offered a two-year 6.5 percent increase. NPEA has proposed a 7 percent increase in the first year and an increase linked to the April 2017 CPI plus 1.5 percent in year two.
The strike, which affects deliveries from oil refineries and fuel depots has raised the risk of fuel shortages. FRA chief executive Reggie Sibiya said on Tuesday the majority of fuel stations across the country were functioning well. “Nationally, about 5 percent of service stations are running dry.”
He said Gauteng was mostly affected, with 10 percent of the provinces service station network running dry. He said service stations in townships were the hardest hit. “Some of (the township service stations) have not received product since Friday,” said Sibiya. He dispelled perceptions that it was more dangerous to deliver to townships. “The picketing activities are not happening in townships. These pickets are taking place in depots.”
Intimidation
SA Petroleum Industry Association (Sapia) executive director Avhapfani Tshifularo said on Tuesday that deliveries to the service stations were delayed due to intimidation of road tankers drivers at the depots “and these has led to some service stations reported short of some fuel grades – this is mainly in Gauteng”.
He said the strike had not affected delivery of jet fuel. Sapia represents South Africa’s major petroleum and liquefied petroleum gas firms.
The fuel suppliers had assure SAA they had contingency measures in place to ensure its aircraft get refuel across the five domestic stations the airline flies to, SAA said yesterday.
Should the reserves be depleted, SAA would activate its own contingency measures to mitigate the impact of fuel supply on its operations.
Meanwhile, the strike could go on for a while as NPEA and Ceppwawu have not met since the workers downed tools last week. Zimisele Majamane, deputy chairman of the NPEA, which is negotiating on behalf of the oil companies, said on Tuesday: “There have been no further discussions. The strike still continues.”
Majamane said NPEA’s two year offer remained unchanged. “Our offer is still on the table. That is what we can afford in the current economic conditions.”
NPEA has previously said its offer was fair and reasonable given the country’s slow economic growth, the high currency exchange rate and the drastic decline in the crude oil price towards the end of last year.
“This was evident in the cost containment measures such as salary freezes, a moratorium on recruitment, reductions on short-term employment and retrenchments, implemented by some of the petroleum companies.”
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