Workers Reject Kumba Iron Ore Pay Offer Of 7%-9% - Union

15th Jul 2010 10:27

JOHANNESBURG (Dow Jones)--Workers at Kumba Iron Ore Ltd. (KIO.JO), South Africa's largest producer of the steelmaking ingredient, have rejected the company's offer to boost wages by between 7% and 9%, the National Union of Mineworkers said Thursday. However, thousands of members of the country's largest trade union have lowered their demand to a rise of between 10% and 13%, depending on job category, from a 15% across-the-board pay increase. Labor unions have recently secured wage rises for their members well above the pace of consumer price inflation, including a deal for an effective 12% hike following a nearly three-week strike at state transport company Transnet Ltd. and a 9% increase from power producer Eskom Holdings Ltd. following threats to strike. Annual inflation eased to 4.6% in May. "The NUM believes that negotiations remain the most powerful weapon of all," the union said in an emailed statement. "The NUM calls on Kumba Iron Ore to come to the party with a good offer and avoid confrontation as seen at the recent Eskom wage negotiations." Kumba is majority owned by U.K.-based mining concern Anglo American PLC (AAL.LN). -By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; [email protected] (END) Dow Jones Newswires July 15, 2010 05:27 ET (09:27 GMT)