Strike threat to petrol, diesel supplies

28 July 2016 - 10:12 By Reuters

Energy industry workers will strike indefinitely from today over pay - a stoppage that will hit the oil refineries of Shell, BP, Chevron and Sasol.About 23,000 workers in the petrochemical and pharmaceutical sectors are expected to strike, said Clement Chitja, head of collective bargaining for the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union.There will, however, be no immediate shortage of fuel, said the National Petroleum Employer's Association.Companies had measures in place to get them through the strike, the association said."It all depends on how long it lasts and how intense it is," said the the association's deputy chairman, Zimisele Majamane."We want a deal of 9% in one year," said Chitja. Employers are offering smaller pay increases and want multi-year agreements.The association said a weak economy and weak global oil prices meant it could offer only a 7% pay rise this year, and an April Consumer Price Index-plus-1.5% improvement factor the year after."Given economic conditions and the state of the industry, and given the global price decline, we feel our offer is fair. We hope we find each other," said Majamane.South Africa is a net importer of refined petroleum products and a long strike would lead to shortages.The strike would further damage an economy that has been forecast by the Reserve Bank to have zero growth a year after expanding by 1.3% in 2015.The higher-than-inflation wage increases being sought this year have been flagged by policy-makers as dangers to an already weak economy. Inflation was 6.3% in June, above the central bank's target range of 3%-6%. ..

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