By Alison Raymond
JOHANNESBURG (Reuters) - Thousands of South African council workers went on strike Monday to press for wage hikes, crippling public services in Africa's biggest economy and piling political pressure on new President Jacob Zuma.
The industrial action is being seen as more muscle flexing from the ruling ANC government's labour union allies, who have called for increased social spending to cushion workers from the country's first recession in 17 years.
The strike by public transport workers, refuse collectors and licensing officers among others, follows days of violent township protests against poor service delivery and unemployment in South Africa.
Hundreds of passengers were stranded in Johannesburg's central business district Monday as bus services ground to a halt, while licensing stations remained closed.
About 5,000 council workers, many wielding sticks, clubs and wearing T-shirts that pronounced "fighting for survival," marched in the city, singing ANC revolutionary songs and blowing plastic trumpets.
Police officers, some on horseback, kept watch over the strikers from a distance. Some of the workers went on the rampage, overturning refuse containers and leaving litter strewn across the streets in their wake. Shops and businesses locked their doors as the marchers approached.
Similar marches took place in Pretoria and Cape Town.
The latest industrial action has had no impact on financial markets yet but analysts said this could change if the strikes drag on and affect more services and economic sectors.
WORKERS WANT 15 PCT WAGE HIKE
The South African Municipal Workers Union (SAMWU) and Independent Municipal and Allied Trade Union (IMATU), which say they represent 150,000 council workers, want a 15 percent wage hike.
They have rejected an 11.5 percent wage increase. Annual inflation was 8 percent in May.
"Indications are that the majority of workers, if not 90 percent of them, are out on strike," said SAMWU General Secretary Mthandeki Nhlapo.
"Refuse collection is badly affected; bus transport is badly affected. Other services like electricity are also affected. Across all services within municipalities, the effect is visible," he told Reuters, adding the strike could be indefinite.
A rail workers' union said it had suspended a strike set for Tuesday which would have left thousands of urban commuters stranded, to allow for further wage talks.
Workers in the chemical sector have also been on strike for higher pay, unions in the gold and coal sectors will announce on Tuesday whether to accept an improved wage offer, thus averting stoppages which would hit some of the world's biggest mines.
The strikes are the latest sign of discord between the ruling ANC government and its labour union allies which helped Zuma win an April election in which he promised to improve the lives of millions of South Africa's poor.
Financial markets have taken the actions in their stride to date, but analysts say this could change if they become more widespread.
"I think the impact on investors and the economy is limited in the short term," said Peter Attard Montalto, emerging market analyst at Nomura International.
"Investors' concerns are when they (strikes) shift from being just about wages ... and shift to more general policy concerns, interest rates, inflation targeting etc," he added.
Labour unions have been critical of business-friendly policies like inflation-targeting, which they claim have worsened the plight of the poor.
(Writing by Stella Mapenzauswa; Editing by Marius Bosch and Giles Elgood)
