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9 August, 2001The South African metalworkers' union continues to negotiate its demands with the steelmaker while production remains at a standstill.

SOUTH AFRICA: Five-thousand workers employed at Highveld Steel and Vanadium Corporation began strike action on August 7 following their rejection of management's latest offer of an 8 per cent wage rise. The National Union of Metalworkers of South Africa is demanding the following for its members at the steelmaker:
- 15 per cent wage hike;
- 500 rand (US$61) risk allowance;
- 60 per cent subsidy for medical aid;
- 200 rand (US$24) increase in housing subsidy;
- overtime payment as per the Basic Conditions of Employment Act;
- 20 days of leave for shop stewards to attend union activities.
With production halted at Highveld, the pressure on South Africa's second biggest steel company is great to find a way out of the impasse; however, says Numsa, "we hope this will translate into real action by putting a revised settlement package. If this is not the case, the strike will continue for an unspecified period."
Highveld makes steel vanadium products, ferro-alloys, carbonaceous products and metal containers and closures, and produces ore from its own mine. In 2000, the company manufactured 1 million tonnes of carbon steel, compared to 5.2 million tonnes at its larger rival in South Africa, Iscor, which managed to avoid a strike only the week before when it offered wage increases above inflation.
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