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Wage Talks Stall Across South Africa Mining Sector

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15 June, 2009

The threats of strikes are now on in mining in South Africa, following the latest rounds of talks in several mining sectors. The National Union of Mineworkers (NUM) filed for dispute resolution last week with the country’s Commission for Conciliation, Mediation, and Arbitration (CCMA) in gold talks with the Chamber of Mines.

In coal talks on Friday, some progress was noted on benefits and working conditions, although the NUM and other unions remain far apart on wages. Employers, through the Chamber, are offering 7.5% for lower-paid colliery workers and 6.5% for others.

The talks in the gold sector, covering 150,000 miners, went to government intervention following the Chamber’s refusal to offer more than 7%, a few percentage points less that South Africa’s current consumer price index. In 2008, that inflation index hit 11.5%, while the current food index is at 14.9%. The NUM is seeking 15% and the possibility of a strike in the gold sector is likely.

NUM General Secretary Frans Beleni

“It has always been our intention to bargain in good faith, to try to reach a settlement through negotiations,” said NUM General Secretary Frans Baleni. This year, he added, he NUM may have “to use a different tool in strike action.” The NUM is standing behind a 12th Congress mandate from late May that calls for significant wage increases across the mining sector.

At that Congress, NUM President Senzeni Zokwana said, “Let no union leader believe we are going to settle for low wages. We will demand a living wage for mine workers, construction workers, and energy workers.” Talks in all NUM sectors are now in critical stages.

Senzeni Zokwana

In platinum mining negotiations, Anglo Platinum’s wage offer of 6% was rejected by the NUM and further talks are scheduled for 25-26 June. The union is seeking 15% with AngloPlats, while it has a 20% wage proposal tabled before Impala Platinum. It also seeks a moratorium on hiring and promotions of white women at Implats, the world’s second larger platinum producer, as well as a pension fund increase from 16.5% to 25%. Talks there are to resume on 17 June.
In coal talks, progress was made on establishing employee stock ownership plans at companies which offer no such plans, and some progress was noted over language on sub-contracting. Talks in coal will resume on 18 June.
In all South African mining sector talks, the NUM is pressing for full work rights and guarantees for contract workers, and an end to the use of labour brokers. The union is also seeking a six-month paid maternity leave in several sets of negotiations.

The biannual wage talks are being conducted with the Chamber of Mines on behalf of several mining houses, as well as directly and bi-laterally with some major mining companies, most specifically the platinum producers and Harmony Gold.

In an unrelated matter, the NUM scored a decisive Labour Court victory over diamond miners DeBeers. The court ruled that DeBeers violated the labour Relations Act when it bypassed dialogue with the NUM over severance payments for miners made redundant. The court decision, ordering payment for 1,467 displaced diamond miners, was a victory for the NUM, which argued successfully that due process under Section 189A of the labour statute, was violated.