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)
  • Windsun33
    , contributor
    Comments (4431) | Send Message
    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
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
    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.




    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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