September 19, 2017

Impact of the coal strike on the bleeding rand

 

The National Union Mineworkers (NUM) strike which began on Sunday (4 October 2015) after the collapse of the wage talks, will impact heavily not only on the domestic front, but also on coal exports to Europe and Asia at time when the rand is bleeding heavily.

The coal strike comes after NUM and affected companies- Anglo Coal, Glencore, Exxaro Coal, Kangra, Delmas Coal and Msobo- reached a deadlock in talks last week, when the parties were unable to reach an agreement over the R100 demanded by NUM for the lowest category and 14% for the artisans and miners, despite Glencore, Anglo Coal and Exxaro Coal through the Chamber of Mines raising their offer to increase wages by up to 8.5 percent for the lowest paid workers from 8%.

The question that both parties should ask themselves as the strike continues, is the impact of their actions on the rand, men on the street, and let alone the power utility that has been struggling to keep the lights on- this may impact its ability to generate sufficient electricity.

A compromise should reached as soon as possible in order to restore normalcy in the coal region.

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