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South Africa: Gold miners begin work stoppage over pay
The stoppages have become a frequent occurrence during annual wage negotiations, but this year come amid sluggish growth and rampant unemployment.
South Africa was for decades the world’s largest gold producer, but its share of production has shrunk from 68 percent in 1970 to 6 percent of the world total in 2012.
Falling gold prices, a declining grade of ore and some of the world’s deepest mines are all factors constrained gold firms’ profits.
In part because of work stoppages, gold production last year fell by 12.4 percent to 167.2 tonnes – its lowest level in over a century, and cost the South African economy US$500 million.
But workers insist their dramatic pay demands are justified after a history of cheap black labor built the continent’s most sophisticated economy.
“It is true that there are legacy issues that we must deal with,” wrote Anglo American CEO Mark Cutifani.
Seven gold mining firms, including giants AngloGold Ashanti and Gold Fields, offered a maximum of 6.5 percent pay raise.
