Business Day (Johannesburg)

South Africa: New Wage Offer As Fuel Panic Mounts

Johannesburg — AS PETROL distributors worked around the clock at the weekend to avert a crippling fuel shortage, employers tabled a new offer that could end the strike tonight if it is accepted by striking union members.

Petrol stations in Gauteng, where 60% of SA's fuel is sold, were hardest hit, but shortages have also been reported in Western and Eastern Cape. Stations in KwaZulu-Natal were also starting to feel the pinch yesterday.

The new offer was tabled by the National Petroleum Employers Association, which had earlier tabled wage offers ranging from 6,5%-8%.

Members of the Chemical, Energy, Paper, Printing, Wood, and Allied Workers Union (Ceppwawu) are saying they would not accept anything below 8,5%, and ideally see 9,5% as first prize.

Solidarity and the South African Chemical Workers Union have already accepted the employers' offer of an 8% wage increase.

Last night, Keith Jacobs, deputy general secretary of Ceppwawu, said unions had a new offer after two days of intense negotiation and would return to their members to obtain a mandate before meeting again tonight at 8pm.

Other issues on the table were a proposed increase in maternity leave from four to six months and the establishment of a standardised 40-hour working week.

Jacobs would not discuss the details of the offer.

"We are going back to our constituencies to present them with the new offer. I must say that the talks over the past two days have been very positive and it's quite possible that the strike will be over by tonight."

Meanwhile, the fuel retail industry said it was bearing the brunt of the crippling petroleum sector industrial action, and losing about R11,5m a day.

As the five-day-old strike continued, Fuel Retailers Association CEO Peter Morgan said yesterday retailers were bearing the brunt of the strike.

He estimated that about a quarter of SA's 4600 retailers were losing out on about R10000 a day in income from lost fuel sales caused by a lack of drivers to deliver fuel from depots to the stations.

Lower revenue from other services such as car wash facilities and convenience store sales would add to their losses, Morgan said.

Retailers, who earned a regulated 48c for every litre sold, would not be compensated for their losses and some were sending forecourt attendants home.

Oil companies were still struggling with distribution yesterday , bringing in contract workers to deliver fuel to petrol stations.

The strike by petrol workers was announced on Wednesday, just after a reduction in fuel prices came into effect, leading to panic buying before and at the weekend.

Morgan said stations in KwaZulu-Natal were also starting to feel the pinch by yesterday . He said it was mainly stations in major cities that were affected .

Oil companies had prioritised large petrol stations and stations set on busy routes for deliveries.

Yesterday, SA's largest refinery, Durban's Sapref, co-owned by BP and Shell, said it had shut down as a result of the strike. Sapref can process 180000 barrels of oil a day.

BP expected fuel shortages to intensify if the strike continued, but spokeswoman Zipporah Mothoa said there was no need for panic buying, as BP was working around the clock to minimise disruption.


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