SAfrica union suspends strike at power firm Eskom

JOHANNESBURG, Aug 12 (Reuters) - South Africa's biggest union said on Wednesday it had suspended a strike set for Thursday at state power firm Eskom that could have led to power cuts and further damage to Africa's biggest economy. South Africa's rand pared losses after the news of the suspension of the strike, which the National Union of Mineworkers (NUM) said was meant to allow negotiations over the thorny issue of a housing allowance. "The NUM has this afternoon suspended the Eskom mass action which was meant to commence tomorrow, pending the outcome of negotiations at the CCMA over the housing subsidy," the union said in a statement. The threat of power cuts helped drive up prices of platinum and palladium last week and pushed the rand to a three-week low as investors fretted about the impact on a country suffering its first recession in 17 years. South Africa is the world biggest platinum producer.