South Africa gold miners expect strike to begin Tuesday


South Africa’s four biggest gold producers - AngloGold (AU), Gold Fields (GFI), Harmony Gold (HMY) and Sibanye Gold (SBGL) - are hoarding cash and lining up access to more as they prepare for the first industry-wide strike since 2011, as the National Union of Mineworkers says its members will lay down their tools on Sept. 3.

The companies seem unwilling to meet the labor union’s terms; “The gold mines are taking action to put their operations into positive cash flow at this gold price," a Johannesburg-based analyst at SBG Securities says. "Hunkering down on wages is part of that strategic plan. They can’t afford it."

Comments (3)
  • mickmars
    , contributor
    Comments (1312) | Send Message
     
    Yet another reason to own the metal and not the miners....
    30 Aug 2013, 08:45 AM Reply Like
  • eidelow
    , contributor
    Comments (3) | Send Message
     
    I certainly agree with you pertaining to South Africa Miners. The labor union doesn't seem to comprehend that the miners are losing money at this gold price and labor rates and a strike will result in closing all the mines.
    30 Aug 2013, 04:33 PM Reply Like
  • tallatlguy
    , contributor
    Comments (6) | Send Message
     
    The question is, is there a profit sharing plan so that all can share in the profits when times are good, and all can share the risks when times are not so good. Usually the way it works, the lower paid workers share the risk, while the upper paid workers share the reward. I'm sure there wouldn't be labor disputes now if they were fairly compensated when gold was $1900.
    4 Sep 2013, 10:03 AM Reply Like
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