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22 November, 2011
A three-week strike by 4,000 members of the National Union of Metalworkers of South Africa (NUMSA) spilled into the streets of Johannesburg on 15 November, with workers employed at Xstrata’s Boshoek and Wonderkop ferrochrome smelters near Rustenburg took a protest to the Swiss company’s Alloys headquarters. NUMSA members presented a petition to company managers demanding wage parity with workers employed at the Xstrata Lion ferrochrome smelter in Tubatse, Mpumalanga province.
Both operations are undergoing big expansions. Xstrata owns 79.5% of the ferrochrome complexes in South Africa, while publicly-listed Merafe Resources holds a 20.5% stake. Both companies also mine chrome in South Africa.
The strike by NUMSA in the North-West province began on 24 October after conciliation efforts by the country’s Commission for Conciliation, Mediation, and Arbitration (CCMA) failed. NUMSA and Xstrata Alloys met two days earlier, but a revised pay offer by the company fell short and workers rejected it.
NUMSA President Cedric Gina (rear) gets Xstrata's Edwin Hlatshwayo Sign Receipt of Petition
NUMSA is seeking an immediate 10% pay increase for Boshoek and Wonderkop metalworkers and a reduction of job grading systems from eight to five. That would close the wage gap with workers at the Lion smelter and equalize the grading system. Currently, Boshoek and Wonderkop workers earn 14 to 39% less than at Lion, depending on pay grades.
NUMSA is also seeking a housing allowance of R3,500.
The petition handed to Xstrata Alloys management last week states: “(The company) has angered workers and instead of focusing on negotiations, they have decided to apply cheap apartheid-era tactics of bashing members through police intimidation of the strike. NUMSA is very angry that workers who went on a legal and protected strike have been treated like common criminals.”
NUMSA President Cedric Gina and Congress of South African Trade Unions (COSATU) Second Deputy Vice President Zingiswi Losi led the march and handover of the petition. The petition asks the company to respond within 48 hours.
Xstrata is world’s largest producer of metal alloys, which besides ferrochrome includes vanadium and platinum, and accounts for one-third of total global production. The Boshoek smelter is currently seeing an expansion that will lift production to 240,000-tonnes-per-year by the end of next year. A second smelter, meanwhile, is now being constructed at the Lion operation that will see production double from the current 360,000 tonnes when it goes on line in the first half of 2013.
The Xstrata-Merafe joint venture in South Africa will then yield 2.3 million tonnes yearly of ferrochrome, which is used in stainless steel production.