<p>A prolonged strike could cause the partial shut down of an economy in recession and could scare foreign investors. <br /><br />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. <br />Employers have balked at the demands, with consumer inflation at eight percent, citing the global economic downturn. <br /><br />As well as World Cup infrastructure, the construction strike could halt work on the mass transit Gautrain high-speed rail project, power stations, an airport, a refinery, a coal terminal, hospitals, highways and mining projects. <br /><br />Collapsed talks<br /><br />The National Union of Mineworkers said it had served the construction sector's employer body with a notice to go on strike after prolonged wage talks collapsed last Friday. <br /><br />Over the past two weeks, South Africa has staged the Confederations Cup, a test event for the World Cup, which whetted the appetite for the main event, but a lot of work was still pending, including completing building works on stadiums. <br /><br />FIFA president Sepp Blatter gave organisers of the Confederations Cup a mark of 7.5 points out of 10 on Monday. <br /><br />There was no immediate comment from the government on the possibility of a strike, but earlier on Tuesday it said the success of the tournament had put to rest all doubts that South Africa would deliver a successful 2010 FIFA World Cup.</p>
<p>A prolonged strike could cause the partial shut down of an economy in recession and could scare foreign investors. <br /><br />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. <br />Employers have balked at the demands, with consumer inflation at eight percent, citing the global economic downturn. <br /><br />As well as World Cup infrastructure, the construction strike could halt work on the mass transit Gautrain high-speed rail project, power stations, an airport, a refinery, a coal terminal, hospitals, highways and mining projects. <br /><br />Collapsed talks<br /><br />The National Union of Mineworkers said it had served the construction sector's employer body with a notice to go on strike after prolonged wage talks collapsed last Friday. <br /><br />Over the past two weeks, South Africa has staged the Confederations Cup, a test event for the World Cup, which whetted the appetite for the main event, but a lot of work was still pending, including completing building works on stadiums. <br /><br />FIFA president Sepp Blatter gave organisers of the Confederations Cup a mark of 7.5 points out of 10 on Monday. <br /><br />There was no immediate comment from the government on the possibility of a strike, but earlier on Tuesday it said the success of the tournament had put to rest all doubts that South Africa would deliver a successful 2010 FIFA World Cup.</p>