Strike looms in chemical and paper industry as wage talks deadlock

A strike may be inevitable as employers in the chemical and paper industry and workers’ negotiators have failed to come to an amicable solution at the wage bargaining council, despite several mediation meetings.

The wage negotiations deadlocked between the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU), which is affiliated to the Congress of South African Trade Unions (Cosatu), and employers.

An attempt by a commissioner from the Commission for Conciliation, Arbitration and Mediation has so far failed.

The two sides had met at the Chemical Bargaining Council and the Wood and Paper Bargaining Council before the talks deadlocked.

So far, the employers from the pulp and paper, saw mills, particle boards, pharmaceuticals, industry chemicals, glass and fast-moving consumer goods sectors offered an 6% to 6.5% salary increase in the first year, while the fibre industry made no offer at all.

Employers insisted the raise should be based on the consumer price index rate of increase, of 1% to 1.5% in subsequent years.

However, union representatives consulted members with a view to consider other tactics to force the companies to reconsider their offers.

Union spokesperson Jerry Nkosi said the union had revised its demand to 9.7%, a drop from 10% across the board. The workers also asked for a 20% shift allowance.

“These disputes meetings did not come close to addressing workers’ needs and we further noted the employers’ intransigence of using the inflation rate as a reference point to deny workers a living wage. It is the belief of [the union] that in using the inflation rate as a reference point, employers maintain starvation wages and perpetuate the apartheid wage gap,” Nkosi said.

He condemned the companies’ insistence on offering increases below inflation and failing to address social issues contained in the union’s demands. Those included paid maternity leave and hours of work.

“[The union] wants to force employers to pay for maternity leave, and other social demands the union has tabled must be improved and finalised during this year’s negotiations,” he said.

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