Johannesburg - South Africa’s gold producers held out hope yesterday that the industry would still be able to avert a strike after a key union rejected their final wage offer.
Even so, the gold mining companies drew a red line on the ground, telling the Association of Mineworkers and Construction Union (Amcu) that there would be no further offer.
Amcu, which accuses the mining industry of paying “apartheid wages”, led a crippling strike early last year that battered the platinum industry.
Although it has stopped short of calling a strike pending further consultations with the gold producers, Amcu has not ruled out industrial action to press its wage demands if talks fail.
A strike would throw the industry into turmoil and lead to job losses at a time when the economy is facing turbulence from rising costs, a wobbly currency, faltering business and consumer confidence.
Amcu is the second biggest union in the gold sector and represents 30 percent of its 94 500 workforce. The union led the five-month wage strike in the platinum belt last year that brought the sector and the economy to its knees.
Chamber of Mines spokeswoman Charmane Russell yesterday said Amcu’s chief negotiators were expected to meet with the chamber today to give their formal feedback.
“Should the offer not be accepted, we will continue to engage. And, while the companies are prepared to take a look at the structuring of the offer, the quantum that has been offered is fixed and final,” said Russell. She dismissed the possibility of a strike saying it was premature.
Graham Briggs, Harmony’s chief executive, said last week that only the media was expecting a strike, adding that there had been no threat of strike action during the talks as the focus was on the sustainability of the industry.
The chamber tabled a final offer last week in which it offered underground employees an increase of R1 000 a month for three years and a R100 a month more in the living out allowance.
Sibanye Gold, Harmony Gold, AngloGold Ashanti and Pan African Resources’ Evander Gold Mine, which are negotiating through the chamber, had indicated that the latest offer was “take it or leave it”.
Amcu consulted with its members at a meeting on Sunday, where its president Joseph Mathunjwa was said to have addressed thousands.
“If we need to go march at their offices, we will,” he said.
Amcu maintained their demand for entry level monthly salaries to increase to R12 500.
The National Union of Mineworkers last month lowered its demand for basic pay to R9 500. Livhuwani Mammburu, the union’s acting spokesman, said consultations with members began on Friday.
Shares of gold companies declined on the JSE yesterday news of the stalemate, with Anglogold Ashanti declining 1 percent to R75.40, Harmony Gold easing 0.08 percent to R11.99 and Sibanye Gold shedding 2.94 percent to R16.16.
Business Report