Business
South Africa: Labor unrest in mining industry to negatively impact economy – Finance Minister
South Africa’s economy cannot afford more mine labor unrest, Finance Minister Pravin Gordhan said on Monday, as the platinum industry’s main trade union served notice on the world’s top 3 producers that it planned to strike this week.
A series of strikes in the factory and mining sectors constrained growth to a sluggish 2 percent in 2013, hampering efforts by President Jacob Zuma’s administration to create badly needed jobs as it braces for elections this year.
The African National Congress (ANC) has swept elections since overturning brutal white minority rule in 1994, but the party Zuma now heads faces growing criticism that it has failed to lift millions out of poverty during 20 years in power.
Platinum producers Anglo American Platinum, Lonmin and Impala Platinum said they had received notice from the Association of Mineworkers and Construction Union (AMCU) to strike in 48 hours, setting the stage for another crippling wave of industrial unrest.
The chamber of mines, which represents bullion producers, said it was seeking a court order to block plans by the AMCU to down tools at Sibanye Gold’s Driefontein mine, Harmony Gold’s Kusaselethu and Masimong mines, and at AngloGold Ashanti’s local operations.
The AMCU, which has a record of militancy, has rejected a 8 percent pay hike that rival union National Union of Mineworkers (NUM), which still represents most gold miners, negotiated with producers last year.
The South African Rand hovered close to recent 5 year lows after news of the planned strikes and Gordhan’s warning, with scope to extend its nearly 4 percent losses against the dollar in the first 3 weeks of the new year.
