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1 August, 2011
Issues in the eight-day strike involving 150,000 members of the National Union of Mineworkers (NUM) in the coal industry, as well as a five-day strike covering the same number of NUM gold miners might be resolved when the union and Chamber of Mines meet today in mediation conducted by South Africa’s Commission for Conciliation, Mediation, and Arbitration (CCMA).
The NUM and Chamber are close on wage terms, with coal and gold mining houses said to be in agreement on finally awarding double- digit wage increases for 2011. The central issue today will be the new length of the collective agreement – either one or two years. Coal talks are scheduled for 10h00, while the gold negotiations commence at 14h00.
Lesiba Seshoka
NUM spokesman Lesiba Seshoka said past CBA durations have generally been two years, but this year could be different. In mediated bargaining with the CCMA on 28 July, the NUM and Chamber seemed in agreement on a retroactive 1 July pay rise of a double-digit figure. Seshoka said if a second year is agreed to, the 2012 increase would likely add up to inflation plus a certain percentage higher.
NUM members at AngloCoal SA, Exxaro, Xstrata Coal, Delmas Coal, Optimum, Springlake and others shut down the country’s coal industry on 24 July. That strike was followed four days later – on 28 July – by 150,000 NUM gold miners striking AngloGold Ashanti, Harmony Gold, Goldfields, and Rand Uranium operations.
Gold mining talks failed down on that day between the union and Chamber, two days after the NUM issued the mandatory 48-hour strike notice upon receiving CCMA certification of non-resolution. In coal, in meeting again with the Chamber on Friday, 29 July, labour and management narrowed their 2011 wage differences.
In platinum mining, the NUM bargains individually with the three major producers, AngloPlatinum, Impala, and Northam. Although a dispute has been declared, the combined 8,000 miners have yet to down tools. But that could change this week. After 28 July talks with the world’s number one producer, AngloPlatinum, the company and NUM remained far apart, AngloPlatinum offering 6-7% while NUM seeks 15%. Negotiations are slated for today with Impala and on Wednesday, 3 August, with Northam.
A third and likely final round of negotiations is also scheduled for today between the NUM and state-run electricity provider Eskom. There has been no dispute declared in those talks. NUM represents 16,000 Eskom staff, while the National Union of Metalworkers of South Africa (NUMSA) covers 5,000.
Maybe the most contentious NUM bargaining has occurred with the world’s largest rough-cut diamond producer, DeBeers Consolidated Mines. Some 5,000 NUM members downed tools on 22 July at Venetia in Limpopo state, Voorspoed in the Free State, and a tailings treatment plant in Kimberly.
No talks have been slated. The NUM has demanded 15% while DeBeers, with record sales in the first half of 2011 of US$3.8 billion on production of 15.5 million carats, has offered a paltry 7.5%. “We will make them move,” stated the NUM’s Chief Negotiator at DeBeers, Peter Bailey.
“The offer is totally unacceptable to us. Last year we settled for between 9.5% and 10%, now we are told 7.5%, plus an ex-gratia one-off payment of ZAR 2,500 (US$375). We totally reject this.”