Rand weakens as strikers reject wage deal
Fin24

Rand weakens as strikers reject wage deal

2014-07-11 09:46

Johannesburg - The rand was on the back foot against the dollar on Friday, extending losses after sources said the National Union of Metalworkers of South Africa (Numsa) had rejected the latest wage offer from employers to end a 10-day strike by metal and engineering workers.

Africa's biggest economy faces the threat of recession as strikes take their toll on growth, with gross domestic product (GDP) contracting in the first quarter due to a five-month platinum boycott.

At 08:54 the rand was trading at R10.7350 to the dollar, down 0.4% from its Thursday close.

Although a lack of local and international data was likely to keep the rand in a tight range, market players are likely to keep a close eye on global risk appetite and developments in the local strike, Barclays Africa said in a note.

The Numsa union has turned down employers' offer to increase wages by 10% this year and 9.5% in 2015 and is extending its strike, union sources told Reuters on Friday.

Government bonds weakened alongside the rand, with yields for the benchmark instrument maturing in 2026 and the shorter-dated 2015 issue each adding 3 basis points to 8.355% and 6.725% respectively.

Comments
  • Joe Black - 2014-07-11 10:10

    Sigh...

  • sxp - 2014-07-11 10:29

    Economic terrorists like these needs urgent sorting out.

  • JamesMWood - 2014-07-11 10:38

    What I would give for a 10% increase, all got was 6.5, no incentives, no bonus nothing! But then I'm white and work for what I get

  • Zahir - 2014-07-11 11:00

    Drive around streets in joburg u see thousands of unemployed people these workers will be join them soon once unemployed they will never get another job

  • Dyllan Kelly - 2014-07-11 11:26

    Yeah let them have there 15% wage increase, let them have a 50% wage increase.... 15% of a currency that holds the value of the Zim dollar isn't going to mean any good to anyone anyways.....

  • Todays Realist - 2014-07-11 11:41

    These guys have a job and it is obvious that some will not be working in the future. They can forget their demands. They are running out of time!

  • Jon Low - 2014-07-11 12:04

    Nigeria has overtaken SA as Africa's biggest economy.

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