The gold mining industry is bracing itself amid fears of a possible strike after the Association of Mineworkers and Construction Union (Amcu) declared a deadlock in the gold sector wage negotiations earlier this week.
Amcu said in a statement it would refer the dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA). The union was demanding a basic monthly salary of R12 500 for entry level workers. This was the same amount the union demanded in the platinum mining sector last year where it waged a crippling five-month long strike in that sector in its push for a better deal.
South African gold producers said that union wage demands were "unaffordable" and could add up to R16.5 billion to the sector's wage bill.
The producers - which include AngloGold Ashanti, Sibanye Gold and Harmony Gold-
said in a statement that the industry's total wage bill in 2014 was R23.5 billion.
"Acceding to these demands would threaten the sustainability of our industry and would jeopardise almost all current jobs," the companies said.
Wage negotiations between the Chamber of Mines and other unions – the National Union of Mineworkers (NUM), Solidarity and Uasa – are set to continue on July 15.
Gold mining strike on the cards?
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