The Chemical, Energy, Paper, Printing, Wood and Allied Workers' Union (CEPPWAWU) on Wednesday said it is declaring a dispute with pulp and paper companies Mondi (MND) and Sappi (SAP).

The dispute is a result of a deadlock on wage negotiations that has been taking place over the past two months at the National Bargaining Council for Wood and Paper Sectors.

The union has demanded a 17 percent wage increase, a shift allowance of 12 percent across all shifts and the immediate discontinuation of the companies' employment of labour brokers.

But the trade union said the employers "remain adamant" that they will only increase wages by 4.5 percent.

It said the tabled offer is far below inflation rate, which would "further put our members in a precarious financial position".

"The end result of which is the exacerbation and perpetuation of poverty in the country," the union said.

CEPPWAWU said it understood that the global economic meltdown was having a direct impact on the number of employers who were willing to accede to workers demands.

"However, we want to reiterate that it is important for employers to acknowledge the demands of workers and to be prepared to compromise on the demands tabled," the trade union said in a statement.

"The union is therefore urging employers to come to the bargaining table or face the alternative which will be crippling industrial strike action," it added.

CEPPWAWU said a certificate from the CCMA had been issued to allow the union to embark on strike action within the next 48 hours.

"The union will therefore be consulting members to inform them about the outcomes of the wage negotiations and the imminent industrial strike action," it warned.

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