South African Union Rejects Pay Offer

Bloomberg reported that a South African gold miners union has rejected a pay offer from operators, including AngloGold Ashanti Ltd. (NYSE:AU), stopping just short of call a strike.
As quoted in the market news:

Association of Mineworkers and Construction Union members gathered at Sibanye Gold Ltd.’s Beatrix mine Sunday to consider the final wage proposal made by producers such as Harmony Gold Mining Co. The union speaks for about 30 percent of the 94,500 employees represented in the talks.
“If we need to go march at their offices, we will,” AMCU President Joseph Mathunjwa told thousands of workers at the stadium next to a mine shaft about 300 kilometers (186 miles) south of Johannesburg.
Sibanye and AngloGold, the world’s third-largest producer, proposed on July 30 to raise monthly pay for entry-level workers by 1,000 rand ($79) annually for the three years started July 1. Harmony offered a 500-rand increase. Basic pay is currently about 5,800 rand. Living-out allowances, for miners who choose not to live in provided housing, will be raised by 100 rand in the first year from 2,000 rand now.
The National Union of Mineworkers, the biggest labor group in gold, lowered its demand last month for basic pay to 9,500 rand. Still, that’s at least 60 percent more than the current wage.

Click here to read the full Bloomberg report.