As gold industry wage talks break down, with gold producers refusing to entertain above-inflation wage hikes, the industry is bracing for a possible strike that could result in economic losses of R597-million a day.

This comes as the gold wage negotiations, which kicked off in July, hit an impasse last week when the unions rejected the 6.5% final offer tabled by the gold producers, which include Harmony Gold , Sibanye Gold, AngloGold Ashanti and Gold Fields, besides others, through the Chamber of Mines (CoM).

“We haven’t had any strike notice and we hope we don’t get a strike notice,” Harmony Gold CEO Graham Briggs said, inviting union bosses to continue engaging industry on the final offer, as the companies had “no more to give”.

Speaking at a CoM briefing, he noted that this would be the third wage hike in 18 months, with the previous increase having been between 7.5% and 10% last July. The latest rise would cost R1.2-billion, in a sector that was severely under strain.

He warned that multiyear wage hikes would “destroy jobs”, with the impact extending to the nation’s economy and the fiscus, citing the R5-billion loss to industry during last year’s strike action.

If the industry’s 140 000 workers embark on industrial action, the daily cost would amount to R349-million in lost revenue, R100-million in lost salaries to employees, R43-million in stores and materials not being bought, R29-million in electricity paid for but not used and R9-million in taxes lost to the State.

Despite the gold mining sector “going down”, it was still a significant contributor to the country’s growth, being the largest mineral exporter at R72-billion.

Of the R77-billion earned from the sale of 167 t of gold last year, about R22-billion went to labour costs, R2.1-billion was paid in corporate taxes and R1.2-billion in dividends.

This excluded the loss of confidence in the industry, relationships and reputation, besides others.

He added that the aftermath and damage caused could not be repaired.

Miners were already the top 75% earners in South Africa.

Currently, entry-level workers were earning a R9 100 basic salary, including contributions to provident funds and medical aids, housing, holiday leave and food allowances, besides others, with workers’ wages reaching R10 920 a month with overtime and bonuses.

This was more than the salary of a qualified person, such as a school teacher, Briggs stated, add- ing that the same-level employee in the manufacturing sector was paid R4 500 a month.