Business Report writes that South Africa faces a winter of discontent as wage negotiations are hammered out in a low-growth environment.  

Notwithstanding consumer inflation having unexpectedly slowed to 6.1% last month, inflation expectations by business and trade unions, in particular, remain stubbornly high.  Growth is sluggish and the central bank expects it to be just 0.6% this year.  According to the latest Salary Trends survey by ECA International, companies in SA are forecasting pay increases of 6.9% this year, based on inflation forecasts of 5.9%.  

Wage negotiations at Eskom, and in the automotive, tyre and motor sectors are already in progress.  At the beginning of the month, the National Union of Metalworkers of SA (Numsa) said in the first round of negotiations, employers in these sector were taking a tough line.  Numsa spokesman Patrick Craven indicated:  “The auto employers say that Numsa’s demands are too high for one year and they would prefer a three-year agreement.  In the tyre sector, negotiations have collapsed because employers are refusing to negotiate directly as they have appointed a consultant, Johnny Goldberg, to negotiate on their behalf, which Numsa rejects.”  On Wednesday, it was reported that Eskom had upped its wage offer to 7%, which the NUM is considering.  

The Association of Mineworkers and Construction Union (Amcu) still has to make known its wage demands for platinum producers.

• Read this report by Wiseman Khuzwayo in full at Business Report

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