SABRINA DEAN – With sixty percent of South Africa’s gold mines not making a profit the sector can ill-afford the cost implications of a strike by about 80 000, which got underway last night.
This is according to Gold sector spokesperson Charmaine Russell, who says the industry would be irresponsible if it granted increases that are not defensible or affordable and would result in the demise of the industry. She says the industry is looking at the wage increase issue from a long term sustainability perspective and is urging unions to do the same.
Russell says the cost of the strike will be felt not only by employers, but also employees and their dependents, suppliers and investors.
"The cost of a strike is significant. If you take a look at lost revenue – one day of industrial action results in R350-million in revenue lost to the gold producers," she says.
Russell says one also needs to bear in mind that that lost revenue is a large portion of the foreign exchange earnings of the country.
She says despite the pending strike discourse is continuing and discussions with the various unions are still taking place.
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