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Spreading labor unrest in South Africa is taking a toll on the country's government paper and...

Spreading labor unrest in South Africa is taking a toll on the country's government paper and the currency, with the prices of both slumping to multi-year lows. "We think it more likely than not that the rand will at least test the 9/dollar mark," says a local currency strategist. SZR -13.1% Y/Y.
Comments (2)
  • I doubt it will get as bad as Iran, where the blackmarket exchange rate is now about 5x the official rate.
    8 Oct 2012, 01:40 PM Reply Like
  • When Lonmin gave striking workers a 22% pay rise, many other miners in South Africa thought they could get a similar deal. Then the strikes moved beyond mine workers as other workers looked to cash in on the potential. Recent dismissal of 12000 striking mine workers, and a shutdown of two smaller mines, may make the point that mine worker demands are not a guarantee of better pay levels. To be fair, many of the mine workers live in absolute squalor, and a slight pay raise would still enable the mines to be profitable.

     

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    There are other issues of rival mining unions fighting to gain control of workers, and bizarre issues of superstition and witchcraft involvement, which I cover in that article. My feeling is that until all the union representatives can be included in discussions, this unrest will continue.
    8 Oct 2012, 02:04 PM Reply Like
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