Gold mining: Offer short of union demands

GOLD mining companies tabled a five-year wage offer to the industry’s unions that falls short of demands for increases of more than 80 percent. AngloGold Ashanti, the world’s third-biggest producer of the metal, offered to raise entry-level pay by 13 percent annually starting on July 1, while Sibanye Gold and Harmony proposed 11 percent and 7.8 percent respectively, they said in a joint statement. The National Union of Mineworkers wants basic pay to be raised to at least R10 500 monthly from about R5 700 now. Gold producers want to stop above-inflation wage increases to stem rising costs that have left half of the industry barely breaking even or unprofitable. – Bloomberg