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South Africa's AMCU union wants gold miners to double minimum pay

May 13, 2015 2:49 PM ETAngloGold Ashanti plc (AU) StockGFI, HMY, AU, SBSW, LNMIFBy: Carl Surran, SA News Editor17 Comments
  • South Africa's Association of Mineworkers and Construction Union says it wants to more than double the basic pay for entry level workers in the gold mining industry, setting the stage for tough pay talks as the companies battle rising costs and falling profits.
  • The country's top bullion producers, including AngloGold Ashanti (NYSE:AU), Sibanye Gold (NYSE:SBGL) and Harmony Gold (NYSE:HMY), say high pay increases would lead to the decline of a struggling industry.
  • AMCU also called for a doubling of wages in the platinum sector last year, sparking a long strike, before settling for raises of ~20%/year; platinum miner Lonmin (OTC:LNMIF) said last week it would cut 3,500 jobs at its South African mines.
  • The rival the National Union of Mineworkers, vying for popularity with AMCU, secured a wage deal with Gold Fields (NYSE:GFI) in April, and is said to seek up to 75% wage hikes from the rest of the sector.

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