Publishing Date 20 Jan 2014 1:09pm GMT Author Mining Journal
South African platinum and gold producers are bracing themselves for the biggest showdown with unions since 44 died in bloody strikes in August 2012.
Association of Mineworkers and Construction Union (AMCU) members voted in a show of hands Sunday (January 19) to strike at Anglo American Platinum Ltd (Amplats), Bloomberg reported.
AMCU president Joseph Mathunjwa told union members that Amplats, Impala Platinum Holdings Ltd and Lonmin plc - the world’s three largest platinum producers - would be served notice on Monday (January 20) of an intention to strike on January 23.
The union, which represents more than 70,000 workers in the platinum belt, is demanding the monthly minimum wage be raised to R12,500 (US$1,148) from the current R5,500, according to the report.
Platinum was trading at US$1,469/oz at 1.00pm South Africa time on January 20, up 4.9% increase from the end of 2013.
Additionally, South Africa’s three largest gold producers confirmed through the Chamber of Miners that AMCU had served them with notice of an intention to strike. Sibanye Gold Ltd’s Driefontein mine, Harmony Gold Mining Ltd’s Kusaselethy and Masimong mines, and all of AngloGold Ashanti Ltd’s South African operations would be targeted.
Harmony confirmed in a statement that January 23 was slated as the day earmarked for industrial action.
The three producers said they would seek damages from any strike action, pointing out that a two-year wage agreement reached with NUM, UASA and Solidarity in September 2013 was applicable to the 17% of employees who held AMCU membership, even though that union refused to accept the agreement.