South Africa: Industrial action looms in platinum sector resulting from wage dispute between union and Lonmin

(Reuters) – South Africa’s Association of Mineworkers and Construction Union (AMCU) declared a wage dispute on Thursday with platinum producer Lonmin, raising the prospect of sector-wide industrial action in the local platinum industry.

AMCU spokesman Jimmy Gama told reporters the union would remain in talks with the world’s third largest platinum producer, but if no progress was made a government mediator would try to resolve the deadlock.

Industrial action across the platinum belt is looming after AMCU said on Monday its members voted to down tools at Impala Platinum after wage talks failed, but it has not yet given a formal notice of a stoppage as legally required.

The AMCU has also declared a wage dispute with the world’s top producer Anglo American Platinum and a state mediator will try to resolve that impasse as well.

In addition, Gama said the union’s members in the gold sector were voting on whether or not to launch industrial action over wages and could do so from next week.

The AMCU is unhappy with the deals agreed in the gold industry between producers and the rival National Union of Mineworkers, which companies have implemented for all workers.

A fresh wave of labor unrest would deal a hard blow to investor confidence in Africa’s largest economy which has already been hit this year by a spate of stoppages in a number of sectors including the key auto industry.