South African Strike Spreads to Diamond Sector

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Reuters reports that workers at diamond giant De Beers in South Africa said on Wednesday they would go on strike this week, and negotiations in the coal-mining sector have reached a deadlock:

Unions and employers across South Africa are locked in mid-year wage bargaining, known as "strike season", and many labour groups are seeking increases well above the country's 4.6 percent inflation rate.

The National Union of Mineworkers (NUM) wants a 15 percent rise in wages, while De Beers, 45 percent owned by mining firm Anglo American, has offered 7.5 percent and a one-off payment of 2,500 rand.

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Unions said they would strike from Friday.

"The offers are totally unacceptable to us. We totally reject these," said Peter Bailey, NUM's chief negotiator at De Beers.

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Source: Reuters.

The strikes just might be effective. Since 2008, miners, factory workers and steelworkers have used them to win pay rises averaging more than 10 percent a year.

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Read more at Reuters.

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