South-Africa metalworkers end 4 week strike

Metal workers in South Africa have called off a four-week strike and would resume work today, Tuesday.

Labour groups settled the dispute, which endangered the growth of Africa’s second largest economy, agreeing to a three-year wage deal.

The strike, according to Mike Schussler, chief economist at research group Economists.co.za, will curb 2014 economic growth by at least 0.3 percentage point, said

All members of the union have been advised to return to work with the general secretary of the National Union of Metalworkers of South Africa Irvin Jim, saying the settlement offer has been overwhelmingly and unanimously accepted by members.

The walkout by more than 220,000 workers started on July 1 and cost the manufacturing and engineering industries about 300 million rand ($28 million) a day, according to the employers.

The Steel and Engineering Industries Federation of Southern Africa last week offered lowest earners a 10 percent annual wage increase for three years to end the strike, a deal that’s been accepted by Numsa and smaller unions such as Solidarity. That compares with an annual inflation rate of 6.6 percent in June, unchanged on the previous month.

The metalworkers strike affected production at about 12,000 companies including international carmakers Toyota Motor Corp and General Motors.