JOHANNESBURG--South African gold mine workers on strike
Wednesday appeared to soften their wage demands as more than half
of the country's mines reported production disruptions.
Around 80,000 gold mine workers embarked on a strike Tuesday
night as the sector's biggest mine union seeks to push companies to
up their latest wage offer. The National Union of Mineworkers,
which previously said it was demanding entry level wage increases
of up to 60%, said it would now consider hikes of around 15%, the
union spokesman Lesiba Seshoka said.
Gold miners join auto workers and some airport technicians who
are also on strike as part of salary negotiations. It's the largest
mine strike to hit South Africa since widespread labor unrest
sparked a series of violent strikes in August 2012 after police
shot and killed 34 platinum miners striking outside
Johannesburg.
The wildcat strikes last year cost the mining industry 15.3
billion rand ($1.5 billion) in lost production, and protracted work
stoppages this year could have a similar effect, companies and
government warn. Mining accounts for 6% of the country's already
sluggish gross domestic product.
The Chamber of Mines, which represents the country's biggest
gold producers, said 16 out of 23 gold mines reported either a full
work stoppage or worker turnout of less than 50% Wednesday morning.
Mining companies have offered to raise salaries between 6% and
6.5%, in line with South Africa's 6.3% annual inflation rate.
Mining companies have warned that if wages are settled in the
double digits more of the country's marginal mines could close.
Gold Fields Ltd. estimates that half of South Africa's gold and
platinum mines are operating at a loss or just breaking even.
Already mining companies are either in liquidation proceedings
or are laying off workers. Largest platinum producer Anglo American
Platinum Ltd. (AMS.JO) said it will go ahead dismissing 3,300
employees at its South African mines this month as it restructures
the business.
Write to Devon Maylie at devon.maylie@wsj.com