SA mines can’t afford pay rises — Implats

LONDON — South Africa’s mining industry can not afford to offer wage rises during talks that are about to start with a new and unpredictable union, which could spark fresh strikes, Impala Platinum Holdings (Implats) said on Friday.

Report by Reuters

South African mining companies are due to embark on one of their toughest periods of wage talks in the next one or two weeks, with increasingly radicalised unions.

The world’s biggest platinum producing country is hoping to avoid the 2012 wildcat strike action that cost billions in lost revenue and production.

Mining companies are hurting from a nearly 20% drop in platinum prices in the last two years, as the supply disruptions failed to offset weakness in demand for the metal used chiefly in motor vehicle catalysts.

Workers are hoping the unions can deliver deals like the 11% to 22% pay rise Lonmin gave illegal strikers after 34 were shot dead by police at its Marikana mine.

“I don’t think we have a mandate yet for wage levels, I just know from the mines’ point of view that any kind of increase is going to be difficult to afford,” Derek Engelbrecht, Impala’s group executive marketing, told Reuters in an interview.

“I think there certainly is potential for further industrial action in the form of strikes,” he added.

Over the past year the Association of Mineworkers and Construction Union (Amcu) has poached tens of thousands of members from the once dominant National Union of Mineworkers (NUM), which has been hurt by a view that its leaders had become too close to management.

The Amcu leader, Joseph Mathunjwa, on Friday threatened to bring Africa’s biggest economy to a standstill and the rand extended its slide after tumbling to a four-year low against the dollar on Thursday on fears of a strike at Anglo Platinum (Amplats).

More than 50 people have been killed in more than 12 months of unrest stemming from a turf war between the two unions.

“We are now going into uncharted territory,” Engelbrecht said. “We are going to negotiate with a new union that we have never dealt with before on wages, so trying to predict the outcome would be foolhardy.”

The negotiations will start against a backdrop of jobs cuts and approaching elections.

4 Responses to SA mines can’t afford pay rises — Implats

  1. Mbombo May 19, 2013 at 8:42 pm #

    South Africa is not yet free, free from the bondage of (aparthied) genocidal regime of white South Africa and white Rhodesians whom we kicked out of our God given land, against the interest of the vast Zimbos majority. Now they are at it again in Mzanzi trying to avoid wage increases. Then Joseph Mathunjwa you nee to make sure workers get salary icreament, housing and other related facilities, health and safety facilities, shorter working hour and better working conditions, or else wildcat strikes are going to take centre stage.

  2. chacha May 20, 2013 at 12:03 am #

    better vakabayana vega matsaga aya vanetsinyomanhi vanhu ava

  3. UNDEREMPLOYED May 20, 2013 at 1:23 pm #

    Cry the beloved country.

    You need change.

  4. zanu murimbga May 21, 2013 at 11:51 am #

    But shuwa regai matsaga aya ambo suffer.Ndo imbga dzineustinye husingaite but kum veti havatomboti kana buuuf nekutsya ganda ri chena .Ndati siyaso

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