South African Coal Producers Meet Over Options Amid Strike

  • Employers to meet with biggest labor union on Thursday
  • NUM started strike on Sunday after rejecting pay offer

South Africa’s biggest coal producers are meeting to discuss their next steps after the largest labor union for the industry started a strike on Sunday over pay.

"The demand that’s on the table can’t be met," Charmane Russell, a spokeswoman for the producers, said in a phone interview. "The companies are meeting to discuss a way forward."

Employers, including Anglo American Plc, Glencore Plc and Exxaro Resources Ltd., will meet with the National Union of Mineworkers on Thursday, she said in an e-mail.

The strike, the first such action related to wage negotiations in coal since 2011, came after the NUM last week rejected an offer to raise basic salaries for the lowest-paid workers by 5.5 percent to 8.5 percent. The union wants increases of 12 percent to 13 percent.

The country’s coal-mining industry directly employs almost 90,000 people and paid about 19 billion rand ($1.4 billion) in wages in 2014. The price of South African export coal has dropped 28 percent in the past year.

Before it's here, it's on the Bloomberg Terminal.