The South African Rand looks set to lose any gains it made over the weekend after it was announced that Gelncore Xstrata, one of South Africa’s biggest mining companies has sacked 1,000 workers for going on a wildcat strike last week. The move is set to exacerbate tensions in an industry already filled with tension and looks set to damage already shaky investor confidence.
“About 1,000 employees who have participated in the unprotected (illegal) strike have been dismissed” Said Christopher Tatsawane, a spokesman for the company’s chrome operations. The strike began last Tuesday and is still taking place. Talks over the weekend between Association of Mineworkers and Construction Union and the company failed to end the dispute and no other meetings were scheduled at this stage, Tsatsawane added.
The workers have until Tuesday to appeal the dismissals. The miners, most of who belong to the militant (AMCU), stopped work in solidarity with an individual who says he was assaulted by a shift supervisor, the company said last week. The dismissal of so many workers is certain to increase tension as trade unions prepare to head into wage negotiations in the next few weeks.
Before the news broke of the sackings the Rand was set to recover some of its losses as economists cited that the currency was oversold.
“Sentiment is driving it now, not fundamentals or technical’s,” Cairns said by phone on May 31st . “Rand weakness has gone far beyond what even the most negative local fundamentals can justify. But this doesn’t in any way mean that the slide will end.” The currency could fall to 13 per dollar “in a worst-case scenario,” Cairns said.
Current South African (ZAR) Exchange Rates:
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.0239
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.3105
The Euro/South African Rand Exchange Rate is currently in the region of: 13.0553
The Australian Dollar/South African Rand Exchange Rate is currently in the region of: 9.6634
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 7.9980
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.6777
(Correct as of 10:25 am GMT)
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