Fears of renewed strike action in South Africa’s platinum sector has seen the rand slumped to a five-year low. The rand has declined 0.5% to 10.8798 per dollar, the weakest level since October 2008.
Members of the Association of Mineworkers and Construction Union (AMCU) have voted in favour of strike action over wages at Impala Platinum (Implats) and the union is meeting with its members this week to establish whether AMCU members will strike at Anglo American Platinum and Lonmin. The union won the right to strike towards the end of 2013 and workers are demanding that their basic wage be doubled.
South Africa is the world’s biggest platinum producer, and strike action is threatening at least half of global platinum production.