Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

South Africa's Implats says Marula mine strike to end, tensions high

Published 07/07/2014, 02:39 PM
Updated 07/07/2014, 02:39 PM
South Africa's Implats says Marula mine strike to end, tensions high

By Ed Stoddard JOHANNESBURG (Reuters) - South Africa's Impala Platinum (J:IMPJ) said on Monday wildcat strikers at its Marula mine had indicated they would return to work on Tuesday and press their demands through "formal channels".

But tensions remain high and the National Union of Mineworkers (NUM), the dominant union at Marula, said its leaders there had been given 48 hours to vacate their offices by a "workers' committee" and faced death threats if they did not.

"A workers' committee has been set up there which is leading the strike. Our leaders there have been told by unknown people to vacate their offices in 48 hours or they will be killed," a NUM source, who asked not to be named, told Reuters.

The wildcat strike by around 2,000 miners began on Friday.

Implats spokesman Johan Theron told Reuters the precise demands remained unclear but NUM sources said the strikers wanted to press for a deal similar to one signed by the rival Association of Mineworkers and Construction Union (AMCU) in the platinum sector two weeks ago.

Implats, the world's second largest producer of platinum, and rivals Anglo American Platinum (J:AMSJ) and Lonmin (L:LMI) are still reeling from the five-month AMCU stoppage, which ended with AMCU's rank and file getting pay increases of about 20 percent in a three-year deal.

Marula's NUM-affiliated workforce signed a two-year wage agreement late in 2013 for rises of up to 8 percent, still above an inflation rate which is currently 6.6 percent.

NUM members at the mine have also said they faced intimidation if they did not down tools during the Marula stoppage - a pattern which in the past has often preceded AMCU wresting majority membership at a mine.

AMCU emerged as the dominant union in South Africa's platinum belt after poaching tens of thousands of disgruntled NUM members in a vicious turf war in 2012 that killed dozens of people and sparked a wave of wildcat strikes in the mining sector that year.

Officials at AMCU were not immediately available for comment about the unfolding situation at Marula.

© Reuters. Miners on strike chant slogans as they wait for suspended ANC Youth League President Julius Malema to address them outside the Impala platinum mine in Rustenburg

Africa's most advanced economy has been roiled by labor strife rooted in glaring income disparities and high levels of poverty which still scar the country two decades after the end of white apartheid rule.

In the engineering and steel sectors, over 200,000 workers associated with the NUMSA metal workers' union downed tools in a separate dispute last week, forcing General Motors (N:GM) to suspend production at its main South African plant because of a shortage of parts.

(Editing by David Evans)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.