Wage talks start with gold miners

Gold producers and mining unions started wage talks yesterday against the backdrop of stark declines in the industry that was once the world’s largest.

The National Union of Mineworkers (NUM), the sector’s biggest labour group, has demanded an increase in underground base pay of up to 37% , while rival Association of Mineworkers and Construction Union (Amcu) is seeking even more.

Inflation has accelerated from the seven-year low in March and the rand’s plunge to its weakest in seven months may boost price growth.

NUM is demanding entry-level underground pay of R10 500 a month and a two-year agreement. Amcu is seeking R12 500.

That would represent a substantial increase to companies which increased the monthly minimum basic pay to R7 662 last July. – Bloomberg