* Gold Fields CEO says demands will not be entertained
* CEO says demand would put mines out of business
JOHANNESBURG, Sept 18 (Reuters) – Gold Fields is
not willing to consider South African strikers’ demands for a
minimum wage of 12,500 rand ($1,500) a month, the chief
executive of the world’s fourth largest producer said on
Tuesday.
“Clearly at this stage, we will not entertain any of that.
We have a two year wage deal that expires on the 30th of June
next year, and as far as I am concerned, that’s it,” Nick
Holland told Reuters Insider on Tuesday.
Gold Fields’ KDC West operations in South Africa have been
halted by an illegal strike by 15,000 workers for over a week,
part of a wave of wildcat action roiling the industry that has
seen 45 people killed in labour violence around mines operated
by platinum producer Lonmin .
Holland said Gold Fields might be able to afford higher
wages but there was a limit after several years of
above-inflation pay rises combined with soaring costs on other
fronts such as power rates.
Meeting the minimum wage demand of 12,500 rand would “put us
out of business. It would triple the entry wage and more than
double our wages,” he said.
“Wages in South Africa make up about 55 percent of your
costs. So it just puts you out of business.”
Holland also said the demands were unrealistic because they
included an exemption from paying taxes on bonuses.
Continued…
