AngloGold Ashanti (NYSE:AU) announced that its South African mines remain inactive due to an unprotected strike, but commented that it is open to considering negotiations.
The company described its stance as follows:
- We are deeply disappointed that our employees have chosen to break their commitment to the current wage agreement and collective bargaining structures
- We do not intend to reward broken commitments, violence and threats of intimidation
- We remain committed to our employees and the collective bargaining processes as a way to resolve our differences with recognized unions and associations
- If the current unprotected strike continues, it compounds risks of a premature downsizing of AngloGold Ashanti’s South African operations
- In a country where roughly one in four people do not have work, it is incomprehensible that strikers are engaged in activities that threaten jobs in a cornerstone industry that is central to South Africa’s growth aspirations, and where wage rates are highly competitive as compared to other labour intensive sectors in the country.