By Patrick McGroarty
JOHANNESBURG--Talks broke down on Monday between South Africa's
three top gold producers and unions representing workers whose
strikes have hobbled production at their mines.
The Chamber of Mines, negotiating on behalf of Gold Fields Ltd.
(GFI), AngloGold Ashanti Ltd. (ANG.JO) and Harmony Gold Mining Co
Ltd. (HAR.JO) said that three unions including the National Union
of Mineworkers hadn't reached a consensus with striking workers
over whether to accept a package of pay rises an return to
work.
"The unions have indicated that there have been mixed reactions
by their members to the chamber's proposals, and that they are
unable to confirm a return to work," the chamber said in a
statement. "In response, the chamber has indicated that it is not
in a position to make any further proposals and that it, and the
individual companies, will now explore other avenues to try to
bring normality to the gold mining industry."
The strikes have shut all seven of AngloGold's South African
mines, which account for about a third of its total production. Two
of Gold Fields' mines and one operated by Harmony are also closed
due to the strike.
Strikes spread to the gold industry after first crippling the
platinum sector, most visibly with a six-week-long strike at a mine
owned by Lonmin PLC (LMI.LN) north of Johannesburg. Police opened
fire on protesters at that mine in mid-August, killing 34
people.
Some 40,000 truck drivers also went on strike in September,
resolved last week with a package of big pay increases in each of
the next three years.
And members of the South African Municipal Workers Union,
representing 190,000 city employees across the country, have
threatened to strike this week if their demands for more generous
pay aren't met. Already, roughly 10,000 of the union's members in
two northern provinces are on strike, as well as 1,000 bus drivers
in Johannesburg. More city workers will go on strike unless
government officials meet their demands for better pay, said Tahir
Sema, a spokesman for the union.
"We only hope discussions can begin so that the (strike) actions
can be avoided even at this 11th hour," Mr. Sema said.
Write to Patrick McGroarty at patrick.mcgroarty@dowjones.com