Mining Strike at DRDGold in South Africa Heats Up

A strike in South Africa’s gold fields intensified last week as 4,000 miners and their family members, backed by the National Union of Mineworkers (NUM), marched on 29 September to DRDGold Ltd’s offices in Carletonville. The strike at two company mines, Blyvoor and Consolidated Crown Gold Recoveries, started on 16 and 17 September.

At the same time that last week’s manifestation was occurring, the NUM filed a petition with the Department of Minerals to revoke the mining license of DRDGold. The union labels the company with a socially irresponsible record in South Africa, one marked by the closing of mines and payment of paltry salaries.

That anti-social attitude was evidenced at the outset of the strike. DRDGold sought a labour court order declaring the strike illegal, and when the agency did not rule on behalf of the company, DRDGold issued an ultimatum that job cuts would occur if the strike was not called off.

The NUM is seeking a living wage increase of 13% in high-inflation South Africa, while the company is offering a sub-inflation raise of only 7% for lower classified workers and 6.5% for higher category workers. Gold has been one commodity that has retained and exceeded its pricing expectations during the economic crisis, having risen over the past year from US$750 per once to US$1,000.

DRDGold argues that since gold markets worldwide are fixed to the US dollar and because the dollar has lost ground to the rand, the company deserves pay awards that fall below South Africa’s inflation rate.

“We cannot afford to have a company that pleads poverty all the time,” said NUM Carletonvile Regional Chair Deon Boqwana. “This is the same company that was once crowned worst employer of the year by COSATU some years back.”