Massive labor strike kicks off in South African gold sector

04 Sep 2013 Last updated at 09:04:07 GMT
 
JOHANNESBURG (Scrap Monster) : Nearly two-thirds of the South African gold mine workers have commenced nation-wide strike in demand for better pay, paralyzing the country’s gold sector. The strike led by National Union of Mineworkers (NUM) commenced with the tools down strike action by mine workers on Tuesday night shift.

The marathon wage hike talks between the unions and the seven gold producers through the Chamber of Mines had failed to reach a consensus. The representatives of NUM demanded wage hikes of up to 60%. On the other hand, the rival labour union- the Association of Mineworkers and Construction Union (AMCU) negotiated for wage hikes as high as 150%.It also demanded double wages for entry-level miners. However, The Chamber of Mines last Tuesday had made a final offer to the unions for a wage hike in the range of 6% to 6.5% on basic salary.

The latest strike action is feared to hurt the country’s gold mining industry which is already gripped with rising production costs and declining output worries. A complete shutdown of South African gold sector is estimated to result in a loss of $34 million per day in revenue. As per NUM, the strike may extend until December, changing the gold mining landscape forever. AMCU is also expected to join the strikes soon.

Meanwhile, President Jacob Zuma urged both parties to arrive at a peaceful solution at the earliest, as ‘strike hurts both parties’.

Author: Paul Ploumis