South African finance minister Pravin Gordhan has told CNBC that the wage strike that has brought South African platinum production to a halt over the last 11 weeks will come to an end “sooner rather than later.”
Gordhan has argued that the wage dispute will not continue for another 11 weeks, adding that the future of the country’s platinum industry is not under threat. He pointed out that the non-violent nature of the strike is due to government’s efforts to bring parties together, and that the focus of all concerned is a quick resolution.
The Association of Mineworkers and Construction Union (Amcu) members are demanding a minimum monthly salary of R12 500, while mine bosses Amplats, Implats and Lonmin have offered workers a 9% pay rise, with other benefits over the next four years.
Despite Gordhan’s assurances, however, the strike has severely impacted the South African economy, as reflected by the decrease in the economic growth outlook of the International Monetary Fund (IMF) for South Africa during 2014 to 2.3% from an earlier forecast of 2.8%.
Infographic: The effect of strike action on South Africa
Pravin Gordhan confident that strike will end soon
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