JOHANNESBURG - Sibanye-Stillwater's share price declined 4.3 percent to R9.83 cents per share when markets opened on Tuesday following the public holiday as the ongoing strike at its gold operations in South Africa entered the fourth week.
A strike that began on November 21 by almost 15,000 workers affiliated to the Association of Mineworkers and Construction Union (Amcu) has seen a slump in production. The strike was marked by violence and intimidation and three people died and several were assaulted at the company's Beatrix, Kloof and Driefontein mines.
Sibanye currently employs approximately 32,200 people at its South African gold operations, with Amcu representing approximately 43 percent of employees in the bargaining unit. Amcu members embarked on a strike three weeks ago demanding R1,000 increases in monthly wages, every year for the next three years.
But the three other unions which represent 49 percent of workforce - the National Union of Mineworkers, UASA and Solidarity - signed a three-year wage agreement with Sibanye in respect to wages and conditions of service for the period July 1, 2018 to June 30, 2021.
The agreement allows for increases to the basic wage of category 4-8 surface and underground employees of R700 per month in the first year, R700 per month in the second year and R825 per month in the third year.