By Devon Maylie
JOHANNESBURG--A large number of striking gold mine workers in
South Africa have accepted a revised wage offer, a union spokesman
said Friday, bringing an end in sight to industrial action that had
cut into production.
On Friday, Lesiba Seshoka, a spokesman for the sector's biggest
union, the National Union of Mineworkers, said its members at
AngloGold Ashanti Ltd. (ANG.JO) and Sibanye Gold Ltd. (SGL.JO)
accepted the offer for a wage increase of between 7.5% and 8%,
depending on the employee level and near to the level at which
producers had wanted to settle. The offer includes a 2,000 rand
($194) one-off annual living allowance.
AngloGold didn't respond to requests for comment, but Sibanye
confirmed that its workers were beginning to return.
The NUM spokesman said wage talks were ongoing at Harmony Gold
Mining Co. (HAR.JO) and Gold Fields Ltd. (GFI).
On Tuesday, around 80,000 gold mine workers downed tools as the
NUM sought to push for higher wages, the latest in a spate of
strikes that has affected the mining sector in South Africa, a key
component of the economy.
And while some gold miners are now returning to work,
automobile, construction and some airport technicians remain on
strike, putting stress on an already sluggish economy.
Furthermore, the gold sector could still be hit by another wave
of strikes as wage talks continue with the relative newcomer
Association of Mineworkers and Construction Union, which is
negotiating separately on behalf of its members. And the platinum
industry is just beginning similar talks.
The outcome of these negotiations is key to the country's
economy, which expected to grow just 2% this year down from 2.5%
last year.
The wildcat strikes last year cost the mining industry 15.3
billion rand ($1.5 billion) in lost production, while the mining
industry as a whole accounts for 6% of gross domestic product and
is a major contributor to government export revenue.
Last year's strikes cost the economy ZAR6.6 billion is lost
wages and resulted in 24.5 million lost working hours, Labor
Minister Mildred Oliphant said this week.
The NUM initially asked for wage rises of around 60% for entry
level workers, while AMCU asked for a near tripling in salaries.
Gold mine bosses said a double-digit increase would cause mines,
which are running on lower margins, to shut operations.
Many mining companies are either in liquidation proceedings or
are cutting workers even before the talks start.
The country's largest platinum producer Anglo American Platinum
Ltd. (AMS.JO) said it will lay off 3,300 employees at its South
African mines this month as part of a restructuring process.
Write to Devon Maylie at devon.maylie@wsj.com