Rand takes a plunge

The rand yesterday dipped to its lowest level in three years as strike action in the transport sector deepened and municipal workers announced their intention to down tools later this week.

This came as illegal strikes in the mining sector involving as many as 100000 workers and more than 20 mines continued.

The rand was trading nearly 5% weaker against the dollar, turning just short of R9 to the dollar late yesterday. It also showed a sharp fall against most other major currencies.

Though there was no visible sell-off on the JSE - the All Share Index closed 0.69% down and was still near all-time highs - Aquarius Platinum was a big loser.

Aquarius's share price plummeted by 7.21% as it announced the resignation of CEO Stuart Murray. The company suspended operations at its Kroondal mine last month following violence between rival trade unions.

The platinum sector has been hard hit by illegal strikes, some of which are still dragging on and have spread to gold, coal, diamonds and iron ore operations.

Only one of the wildcat strikes in the mining sector ended with a solution yesterday, according to National Union of Mineworkers spokesman Lesiba Seshoka.

Striking workers at Petra Diamonds in Northern Cape returned to work at the weekend.

"All the other strikes continue," Seshoka said.

According to him, NUM was still in talks with the platinum sector about setting up a bargaining council that would see wage negotiations centralised.

The effect of the strikes will become clearer this week when Statistics SA releases August's mining production numbers.

The rest of the economy has more recently been hit by protected strikes in the transport sector.

Secondary strikes are expected to erupt in the country's ports and rail operations next week after the SA Transport and Allied Workers Union gave notice that its members would also down tools.

This is in support of the two-week-old truck drivers' strike.

Retailers have already complained of supply shortages in fresh goods. Reports of ATMs running out of cash and service stations running dry abound.

In an unrelated strike, the SA Municipal Workers Union announced yesterday the majority of its 200000 members will likely go on strike this week. Spokesman Tahir Sema said the union wanted the employer to implement an agreement that would result in the increase in workers' salary scales.

"We've been in and out of discussions and courts for three years," said Sema.

Though the cost of the strike will be difficult to measure, it will adversely affect service delivery.