South Africa mining strikes continue unabated

A deal to end a four month strike in South Africa’s platinum mining sector continues to be elusive, as mining companies and striking workers have taken polar positions.  Frustrated with the lack of progress in wage negotiations, mining companies are now contacting workers directly, as they believe the trade union representing the workers, Association of Mineworkers and Construction Union (AMCU) is to blame for the lengthy standoff.

However, AMCU has reacted angrily to the companies’ overtures and is now taking the case to the Labour Court in a bid to bar platinum companies from contacting the workers directly.  Entering its 17th week, the strike has pitted close to 70,000 AMCU members against three of the world’s largest platinum mines.

Workers at Lonmin, Anglo American Platinum, and Impala Platinum have been on strike since January 23 demanding a R12,500 ($1,100) monthly salary.  Lonmin recently approached its employees with its revised wage offer directly, bypassing AMCU, in a bid to end the strike.

On Tuesday, Amcu is going to court to seek an order barring Impala Platinum (Implats), Lonmin and Anglo American Platinum (Amplats) from contacting their employees using SMS and radio adverts.  So far, it is estimated that mining companies have lost hundreds of millions of rand in revenue, while workers have lost millions of rand in unpaid wages due to the stalemate.

The strike is also now taking a toll on many small businesses in the surrounding communities in the Northwest Province and suppliers to the platinum companies.  Despite growing calls from the government and economists, both mining bosses and AMCU are digging in, refusing to accept wage demands in the strike.

Implats told local media that “even if the strike was to end tomorrow it would still cost the mines about R3 billion each in working capital and take about three months to get the mines from rock all the way to metal”.  Platinum mining companies are offering a seven to nine percent pay increase over the next three years with other benefits over the next four years, but negotiations have so far proved unsuccessful, with AMCU sticking to an immediate wage increase to R12,500.