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South Africa: Labor unrest continues to disrupts mining industry

Wednesday, September 26, 2012

Disruptions to South Africa’s key mining sector increased as AngloGold Ashanti said Wednesday that strikers have halted all its operations in the country, which provide 32 percent of the multinational’s gold production.

Anglo American Platinum workers have been striking for weeks.

The labor unrest moved Monday to the transport sector with a major union saying 20,000 road freight employees are demanding a 12 percent pay rise.

AngloGold Ashanti spokesman Alan Fine said strikers prevented Tuesday’s night shift from starting at the company’s West Wits and Vaal River operations. They joined co-workers who downed tools at AngloGold’s Kopanang gold mine on September 20.

Hundreds of Anglo American Platinum Mine workers gathered at the Bleskop stadium near Rustenburg on Wednesday to discuss the new terms they’ve given Amplats. Workers yesterday met with mine management and said they now demand a monthly take home pay of 12,500 rand (US$1,560).

Miners leader Gad Mdoda said that the company will have seven days to respond, and the strikes will continue.

Amplats called the strikes illegal in a statement released Wednesday, and threatened disciplinary action for employees who “persist in unlawful strike action” on Thursday.

“We have repeatedly urged our employees to come back to work and I do so again,” said Chris Griffith, CEO of Anglo American Platinum. “Our Rustenburg mining operations are under considerable economic pressure and their future is already under review.”

Anglo American Platinum is the world’s largest producer of the precious metal used in jewelry and to reduce carbon emissions of high-end vehicles.

Mining is a crucial sector in the South African economy. South Africa produces 75 percent of the world’s platinum and is the No. 4 chrome producer and the fifth-biggest gold producer. South Africa produces 7 percent of the world’s production of gold.

The South African Transport and Allied Workers Union (SAWATU) said in a Wednesday statement that industrial action will be consolidated “to ensure that the employers start feeling the heat and return to the negotiations table.”

Vincent Masogo of SATAWU said that at least 1,000 started marching in South Africa’s eastern port city of Durban, and gatherings will continue in Johannesburg.

The transport union said there are no talks at the moment, and they hope the unrest will spread until a deal is reached.

“We intend to ignite further sympathy and solidarity strikes from our members in sectors such as maritime and freight rail in an effort to ensure that no goods and parcels move till the road freight workers’ demands are fully met,” the statement said.

Copyright 2012 The Associated Press

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