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LABOUR
Petroleum wage deal signed
Posted Tue, 21 Jul 2009

Solidarity has signed a wage deal in the petroleum sector, it said on Monday.

It added that both the Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (Ceppwawu) and the SA Chemical Workers Union (Sacwu) had also signed the agreement with the National Bargaining Council for the Chemical Industry (NBCCI) on Saturday.

This followed several mediation sessions in the sector to avoid industrial action, Solidarity said in a statement.

"In terms of the two-year wage agreement that was reached, employees will receive a wage increase of 9.5 percent this year, implemented retrospectively from 1 July this year.

"In addition, employees will also receive a 0.5 percent increase in January 2010, based on salaries as in June this year," Solidarity said.

For the second year of the wage deal, an increase of the consumer price index plus 1.5 percent was agreed upon.

According to Solidarity, a further 0.5 percent increase, based on salaries in June 2010, would be granted in January 2011.

"A protection clause for the July 2010 increase was built into the agreement, which will ensure that employees do not receive an inferior increase in the second year of the agreement," Solidarity spokesperson Jaco Kleynhans explained.

"In terms of the clause, employees will receive an increase of no less than 7.25 percent in the second year if the CPI drops below 5.75 percent."

Negotiations between trade unions and employers regarding issues such as shift allowances and job security would now continue at plant level, the union said.

The agreement would be valid from 1 July 2009 to 30 June 2011.

Sapa