South African mine workers’ unions and gold producers met on Wednesday with a mediating authority in a bid to prevent a strike over union demands for a wage increase, which gold companies say they cannot afford.
Three South African mine workers’ unions last week said they had hit deadlock over the wage talks with gold producers, and said a strike was inevitable in the sector should the appointed mediator fail to reconcile the parties over the wage demands.
Elize Strydom, an official of the Chamber of Mines, which negotiates on behalf of gold mining companies, said the first meeting with the Commission for Conciliation, Mediation and Arbitration (CCMA) was taking place on Wednesday.
Gold producers, including AngloGold Ashanti, Gold Fields and Harmony, the world’s third-, fourth- and fifth-biggest producers respectively, negotiate as one under the Chamber of Mines. They would likely be in the line of fire should a strike take place, similar to 2005.
”We are busy engaging each other under mediation with the CCMA,” Strydom told Reuters.
”The mediator is trying to find out what are the issues that are outstanding between the parties, and is talking to the three unions and will later talk to the Chamber of Mines.”
She said it was likely more meetings would follow between the union and the Chamber as they try to find common ground.
The National Union of Mineworkers (NUM) and Solidarity last week rejected an improved offer of 7% from gold producers, and called in a mediator.
Smaller union United Association of South Africa also rejected the gold producers’ improved offer.
Mine workers have demanded a 15% pay rise, well above South Africa’s consumer inflation of 8,4%.
A new wage deal is due to take effect on July 1.
The unions say their wage demands can be met because the price of gold has risen despite the global economic downturn.
But South African gold producers say they can’t afford the wage demand plus requests for additions to workers’ allowances. — Reuters