/ 2 July 2007

Big three gold firms offer 6% wage hike

The three biggest gold firms in South Africa, the world’s biggest producer of the precious metal, offered workers a 6% wage hike on Monday, a union official said.

Unions declared a dispute, the first legal step towards going on strike, on June 20 after mining firms failed to present an offer on the first day of formal negotiations, but later agreed to return to talks.

The gold firms on Monday offered a wage hike of 6% for a new contract, spokesperson Reint Dykema of the Solidarity union said.

The Chamber of Mines, which negotiates on behalf of AngloGold Ashanti, Gold Fields and Harmony Gold Mining Company, was not immediately available for comment.

The chamber said last month it had not presented a wage offer earlier because it needed to sort through a total of 61 demands from the unions.

The National Union of Mineworkers, the biggest mining union, has demanded a 15% wage hike and Solidarity is asking for 20%.

Analysts have said strikes are likely in the gold and platinum sectors this year as restive workers hit by rising inflation seek to capitalise on surging metals prices.

South Africa was hit in 2005 by the first industry-wide strike in 18 years, paralysing production for five days.

After the strike, the two sides eventually settled on a deal with wage increases of 6%to 7% in the first year and inflation plus 1% in the second year.

The two-year wage deal that ended that strike expired on June 30, but in previous years talks have dragged into August and the new deal was backdated. – Reuters