Gold price drop to test resilience at wage talks

The gold price dropped to its lowest level in five years to under $1,100 an ounce.

FILE: The gold price dropped to its lowest level in five years to under $1,100 an ounce. Picture: AFP.

JOHANNESBURG - Gold mining companies said their resilience during negotiations with workers is being severely tested as the gold price dropped to its lowest level in five years.

This week the Chamber of Mines negotiating team met with Association of Mineworkers and Construction Union (Amcu), Solidarity, United Association of South Africa (Uasa) and is planning to meet with majority union the National Union of Mineworkers (NUM) next week.

Yesterday, the price of gold dropped by over $100 to settle under $1,100 an ounce.

Chief negotiator for the companies' Elize Strydom said, "Since we commenced the negotiations, the gold dollar price has fallen by over $100 and we should all bear this in mind when we talk about wage increases. We should have sustainability and job security at the top of our minds."

Amcu alone is demanding an R18 billion wage bill from all companies over one year.

AngloGold Ashanti, Evander Gold Mines, Harmony Gold, Sibanye Gold and Village Main Reef said the demands made by the unions are were high as an additional R16,5 billion across the five companies.