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20 September, 2005ICEM News release No. 62/1999
Leaders of gold mine workers worldwide today drew up proposals for safeguarding the future of the industry.
Gold mining is a major employer in a number of countries, but the recent instability of the gold price and uncertainties about gold's future role have put jobs at risk.
That is why the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) convened today's World Gold Forum in Durban, South Africa. The host country is the world's biggest gold producer.
Before drawing up their recommendations, the union leaders had heard detailed presentations from South African Minerals and Energy Minister Phumzile Mlambo-Ngucka and from senior officials of the companies' World Gold Council, the Chamber of Mines of South Africa and the South African Reserve Bank.
The unions' recommendations will now be sent to the World Gold Council, national banks and others whom the unions wish to engage in a continuing dialogue on the future shape of the industry. The proposals will also go to the ICEM's governing bodies for ratification.
The mining unions' main conclusions:
The need for gold reserves must be reaffirmed. Recent sales of gold reserves have occurred at a time when the world economy, and particularly the US economy, has experienced growth. However, the unions emphasise that the current boom - based mostly in the USA - is the result of rising share prices and cannot be sustained indefinitely.
The release of above-ground bullion stocks should be regulated. Central banks hold about a quarter of the world's above-ground gold. Central banks have a primary obligation to help achieve stable economic growth. They cannot do this through speculative investment in the financial markets. All current plans for gold sales, announced or unannounced, should be publicly abandoned by the central banks, the unions insist.
Measures must be taken to increase the consumption of gold. Better marketing of gold is needed, the unions say. In particular, this entails promoting the use of gold in jewellery. Noting that gold jewellery has a rather old-fashioned image, the unions suggest that the World Gold Council should create a prize for young designers of gold ornaments. Restrictions on the private ownership of gold in a number of countries should be lifted, the unions recommend.
Restructuring will continue to take place within the gold industry, but this must be in full prior consultation with the trade unions concerned. Special programmes must be introduced to minimise the social impact. The unions point out that job cuts in gold mining are particularly disastrous for developing economies, where each gold mining job directly supports ten people and indirectly creates employment for many more in some of the world's poorest countries. It is also the case that the first gold miners to be retrenched are usually the least skilled, with the slimmest prospects of finding alternative employment. Among the most vulnerable gold miners are those who work in small-scale mining in a number of developing countries. The international community must ensure that small-scale miners either can operate in a healthy, safe and viable manner or have access to alternative sources of income.
The gold miners' leaders also unanimously called for an ICEM global campaign on the world's third-biggest gold producer, Placer Dome. The campaign will be aimed at reversing Placer Dome's job cuts and pressing the multinational to repair the serious environmental damage that it has caused in a number of countries.
The World Gold Forum precedes the ICEM World Congress (Durban, 3-5 November). This will map out a trade union response to globalisation.
Speakers at the Congress session on 4 November will include South Africa's President Thabo Mbeki.
Gold mining is a major employer in a number of countries, but the recent instability of the gold price and uncertainties about gold's future role have put jobs at risk.
That is why the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) convened today's World Gold Forum in Durban, South Africa. The host country is the world's biggest gold producer.
Before drawing up their recommendations, the union leaders had heard detailed presentations from South African Minerals and Energy Minister Phumzile Mlambo-Ngucka and from senior officials of the companies' World Gold Council, the Chamber of Mines of South Africa and the South African Reserve Bank.
The unions' recommendations will now be sent to the World Gold Council, national banks and others whom the unions wish to engage in a continuing dialogue on the future shape of the industry. The proposals will also go to the ICEM's governing bodies for ratification.
The mining unions' main conclusions:
The need for gold reserves must be reaffirmed. Recent sales of gold reserves have occurred at a time when the world economy, and particularly the US economy, has experienced growth. However, the unions emphasise that the current boom - based mostly in the USA - is the result of rising share prices and cannot be sustained indefinitely.
The release of above-ground bullion stocks should be regulated. Central banks hold about a quarter of the world's above-ground gold. Central banks have a primary obligation to help achieve stable economic growth. They cannot do this through speculative investment in the financial markets. All current plans for gold sales, announced or unannounced, should be publicly abandoned by the central banks, the unions insist.
Measures must be taken to increase the consumption of gold. Better marketing of gold is needed, the unions say. In particular, this entails promoting the use of gold in jewellery. Noting that gold jewellery has a rather old-fashioned image, the unions suggest that the World Gold Council should create a prize for young designers of gold ornaments. Restrictions on the private ownership of gold in a number of countries should be lifted, the unions recommend.
Restructuring will continue to take place within the gold industry, but this must be in full prior consultation with the trade unions concerned. Special programmes must be introduced to minimise the social impact. The unions point out that job cuts in gold mining are particularly disastrous for developing economies, where each gold mining job directly supports ten people and indirectly creates employment for many more in some of the world's poorest countries. It is also the case that the first gold miners to be retrenched are usually the least skilled, with the slimmest prospects of finding alternative employment. Among the most vulnerable gold miners are those who work in small-scale mining in a number of developing countries. The international community must ensure that small-scale miners either can operate in a healthy, safe and viable manner or have access to alternative sources of income.
The gold miners' leaders also unanimously called for an ICEM global campaign on the world's third-biggest gold producer, Placer Dome. The campaign will be aimed at reversing Placer Dome's job cuts and pressing the multinational to repair the serious environmental damage that it has caused in a number of countries.
The World Gold Forum precedes the ICEM World Congress (Durban, 3-5 November). This will map out a trade union response to globalisation.
Speakers at the Congress session on 4 November will include South Africa's President Thabo Mbeki.