Johannesburg — THE construction sector strike that targeted 2010 Soccer World Cup infrastructure projects came to an end officially late yesterday after employers gave in to workers' demands, including a 12% pay rise.

This means thousands of workers who downed tools a week ago will return to dozens of construction sites around the country today, putting several projects, including 2010 stadiums, airports, roads and the Gautrain, back on track again.

The end of the strike will also come as a relief to organisers of next year's World Cup and the government, concerned about completion deadlines of stadiums being met and perceptions the industrial action was creating abroad.

The South African Chamber of Industry and Commerce said the strike would create negative perceptions about the desirability of SA as an investment destination.

Labour Minister Membathisi Mdladlana , whose intervention last week brought unions and employers back to the negotiating table, welcomed the deal. He said it would "contribute immensely to the country's final preparations for hosting the Soccer World Cup next year".

Yesterday's signing of the final agreement -- by the National Union of Mineworkers (NUM), the Building Construction and Allied Workers' Union (BCAWU) and employer body the South African Federation of Civil Engineering Contractors (Safcec) -- was nearly scuppered by last-minute disagreements over some details in the text. The unions evidently refused to sign yesterday with employers insisting on a "peace clause" in the deal for construction workers to waive their right to strike until after the World Cup next year.

This proved to be the only sticking point in the talks to end the strike, but after about five hours of haggling yesterday parties finally agreed to have the clause changed.

The unions' contention was that the clause would have meant that any strike up to August next year would be unprotected so employers could fire strikers or rehire them on new conditions.

The employers wanted to avert future strikes that could jeopardise preparations for the World Cup.

"We are satisfied with the 12%," said NUM deputy president Piet Mathosa. "It's reasonable and

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acceptable. We are also happy with the contents of the agreement as we have achieved what we wanted.

"There is nowhere in this agreement where it says we cannot embark on a strike in the future," Mathosa said.

Employers acceded to the demand for construction workers to be paid during bad weather when work is affected.

They also agreed that workers employed by contractors for more than 18 months would be eligible for social benefits, such as medical aid and a pension fund.

On the issue of the wage increase, the unions had initially demanded a 13% increase while Safcec had offered 10%, which it subsequently raised to 10,4%, 11,5% and finally to 12%.

BCAWU general secretary Narious Moloto said: "We see this deal as an achievement and victory for construction workers. It is the first time in the history of the industry that this has happened."

Safcec spokesman Schalk Ackerman said the agreement extended to nonparticipating construction firms and contractors. Time lost as a result of the strike would be made up through overtime to ensure completion deadlines were met.

"The fact that we have managed to contain the strike to one week gives us the confidence that deadlines will be met," he said.

Group Five human resources executive director Junaid Allie, who participated in the negotiations, said the company was relieved that the strike was over. The strike had affected its work at the new Moses Mabhida stadium and King Shaka Airport in Durban as well as the Gauteng Freeway.

"We are relieved that we have come to a reasonably good arrangement, and that work can now continue. Some of our contracts are fixed, which means we will bear the costs, while some are based on cost escalation whereby certain aspects are allowed to fluctuate, and that is charged to the clients."