20110125
Reuters
JOHANNESBURG (Reuters) - South African truckers seeking 20 percent wage increases over two years are threatening a strike that could slam the brakes on Africa's largest economy, a union official said on Tuesday.

The biggest truckers union, SATAWU, and three other groups are discussing whether to strike and expect to announce their decision on Thursday. They are also seeking housing allowances, reduced working hours and other non-wage benefits.

"A strike would have a devastating effect because transport is a strategic industry," June Dube, first deputy president, South African Transport and Allied Workers Union, told Reuters.

The trucking industry group Road Freight Association has offered a 7.5 percent rise this year and 7.5 percent next year, its labour relations manager, Magretia Brown-Engelbrecht, told Reuters.

"Our offer is in excess of the current CPI, and we believe it is more than reasonable," she said. The consumer price index, a key measure of inflation, rose 3.5 percent in December.

The Association said the unions involved represent 51 percent of the 65,000 people in the trucking industry.

In South Africa, unions can typically go on strike 48 hours after giving notice to their employers.

Last year several major unions, including those representing about 1 million state workers, won pay rises of more than double the rate of inflation, leading the finance ministry to say the deals posed a risk to the economy.