Workers at South Africa's state-owned utility Eskom could go on strike after wage negotiations collapsed, the National Union of Mineworkers (NUM) has said.

Any industrial action could hurt the country's platinum mining sector, which relies on Eskom for its power.

The NUM confirmed that it has been awarded a certificate of non-resolution to the dispute, essential for legal strike action, by the Commission for Conciliation, Mediation and Arbitration.

It follows a breakdown in talks over pay between unions and Eskom. The utility had offered a seven per cent increase, while workers demanded 13 per cent.

"The talks have collapsed, we are now preparing to go on strike," NUM spokesman Lesiba Seshoka told Reuters.

However, Eskom indicated that it would fight the industrial action in the courts by claiming it provides an essential service.

Eskom recently indicated that it would seek to increase its coal reserves to safeguard power supply after a one-day strike by miners in July.

Source:

UPDATE 2-S.Africa's NUM threatens strike at utility Eskom (08/09/11)

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