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Strike to affect stadium construction

Several sectors in Africa's biggest economy are holding wage negotiations, some of which cover a two-year period, and unions are demanding above-inflation increases.

Employers have balked at the demands, with consumer inflation at 8 percent, citing the global economic downturn.

The National Union of Mineworkers (NUM), which also represents construction workers, said in a statement it had served the construction sector's employer body with a notice to go on strike after prolonged wage talks collapsed last Friday.

"A strike action is set to begin on July 8," Lesiba Seshoka, the NUM's spokesman said.

"Its not just the World Cup stadia that will be affected, we are talking about power stations, hospitals, roads and the like. It will last until they (the employers) come to their senses and offer a 13 percent wage increase for one year."

The employers' organisation was not available to comment.

"Government remains committed to delivering on all the guarantees for the 2010 FIFA World Cup. The other remaining stadiums ... are nearing completion," it said.

Seshoka said Africa's top construction and engineering firm Murray & Roberts Holdings Ltd, WBHO and Group Five could have their work affected.

South Africa's state-owned utility Eskom's 4,800 megawatt Medupi power station could also be affected, slowing efforts to fill a chronic power shortage in the country.