Business Day (Johannesburg)

South Africa: Talks to End 2010 Construction Strike Falter

Johannesburg — EFFORTS to end the construction industry strike, now in its seventh day, appeared to be deadlocked late yesterday as it remained unclear whether unions and employers had resolved their differences over a framework of agreement presented to workers last week.

Union and employer representatives were still locked in a meeting at the Commission for Conciliation, Mediation and Arbitration late last night as they haggled over details of the agreement that includes an 11,5% wage increase.

Neither side was willing to give further details on proceedings, saying that the talks were at a sensitive stage. Last night, a source said: "It's going to be a long night.

"There are no indications of how long the discussions will last."

Failure to reach a deal would mean that the strike continued indefinitely, jeopardising the completion deadlines of 2010 Soccer World Cup stadiums and raising questions about SA's readiness to host the event next year.

The strike also affects work on the Gautrain and at airports.

Employers and workers are under pressure to end the dispute as soon as possible as a protracted strike would have added cost implications for construction companies, and would affect workers who are striking under the "no work, no pay" rule.

A source close to the talks said the employer representatives were still considering certain conditions demanded by the National Union of Mineworkers and the Building Construction and Allied Workers' Union before a deal could be signed, including a 12% wage increase. Employer body the South African Federation of Civil Engineering Contractors (Safcec) has raised its offer to 11,5% from 10,4%.

The source said workers also demanded the removal from the framework of the "peace clause", forbidding workers to engage in similar strikes in future.

It is believed that employers want to lock construction workers into an agreement that ensures that they do not go on strike, at least until after completion of projects related to next year's World Cup.

The marathon meeting yesterday followed a weekend during which the unions consulted their members about Safcec's improved proposal, including the 11,5% increase.

The proposal came after an urgent top- level meeting was called last week by Labour Minister Membathisi Mdladlana to bring to an end the strike that has already made international headlines and raised concerns about whether the completion deadlines of stadiums for next year's World Cup will be met.

The meeting included the local organising committee of the Soccer World Cup, which raised concerns about the effect of the strike on meeting deadlines for completion of construction.


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