The South African Rand has firmed against the Pound and US Dollar after striking gold miners offered to negotiate their wage demands with their employers.
Early in Wednesday’s session the Rand edged higher after representatives of the National Union of Mineworkers (NUM) said that they had offered to lower their wage increase demands to gold companies, a gesture that has bolstered hopes that a deal could be done in the near future and limit the impact of the strike that has already damaged South Africa’s economy.
NUM was demanding rises of up to 60% after previous talks broke down. The union, which represents about 64% of South Africa’s 120,000 gold miners, said it rejected “with contempt slave wages as represented by an increase of a meagre 6.5% or R300 (£18.68) per month”. It claims bosses have continuously awarded themselves huge bonuses.
Yesterday saw 80,000 miners down tools as they embarked on strike action causing the nation’s President Jacob Zuma to intervene by pleading for both workers and employers to find a peaceful solution to the dispute and avoid devastating the economy.
The NUM has noted government’s wishes that industrial action be avoided and dares the state to explain which side it is on,” spokesperson Lesiba Seshoka added. “The union is aware of the devastating impact industrial action would have on the economy, which is largely a white man’s economy with no benefits for poor black mineworkers.”
The gold miners strike is just the latest bout of labour unrest as workers in the construction and car manufacturing sectors have also taken strike action in recent weeks. The country’s economy is expected to lose $35 million a day in lost production.
The Rand is likely to resume its downward slide in tomorrow’s session as the markets await the latest US jobs data. A continuing picture of improvement for the US economy is likely to see the Dollar be supported as bets rise that the Fed will taper its monetary easing programme later in the month.
“Strong US data, moves towards war with Syria, and mounting pressures on other emerging markets is a terrible combination for the rand,” said Rand Merchant Bank.
Current South African (ZAR) Exchange Rates:
The US Dollar/South African Rand Exchange Rate is currently in the region of: 10.2469 <
The Pound Sterling/South African Rand Exchange Rate is currently in the region of: 15.9683 <
The Euro/South African Rand Exchange Rate is currently in the region of: 13.4930
The New Zealand Dollar/South African Rand Exchange Rate is currently in the region of 8.0618 >
The Canadian Dollar/South African Rand Exchange Rate is currently trading in the region of 9.7444 >
(Correct as of 11:30 am GMT)
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