27 Aug 2013 Last updated at 08:12:24 GMT
 
JOHANNESBURG (Scrap Monster) : The wage talks between the gold mine labour unions and the seven gold producers through the Chamber of Mines have failed to produce any result so far. Fears of possible strike action by the unions are looming the South African gold mining industry, which could result in a loss of $34 million per day in revenue.

The main mining union- National Union of Mineworkers(NUM) walked out of the wage talk negotiations  and warned of the union going into strike if the gold producers are unwilling to accept their demand for pay rises of up to 60%. The union in a communication stated clearly that if the gold firms fail to respond to their demand within seven days, they would resort to industrial actions which could paralyze the entire gold mines across the country.

Meantime, the minority union-Solidarity lowered its salary-hike demands to less than 10%. Initially, Solidarity along with Association of Mineworkers and Construction Union (AMCU) had demanded a wage-increase of 10%. On the other hand, the Chamber raised its proposal to 5.5% with additional compensations and up to 6% in selected job categories.

The AMCU which represents 17% of the miners at the seven gold companies has been demanding double wages for entry-level miners.

According to NUM spokesperson, the union has given the gold producers time until Aug 31st. Failure by gold companies in responding to their demands would lead to indefinite strike actions.

Author: Paul Ploumis