By Heba Girgis
Impunity Watch Reporter, Africa
CAPE TOWN, South Africa—South African mines today reached an agreement on a wage deal with the unions and the protesters as the bulk of the gold sector’s striking miners returned to work under a threat of dismissal. This return marked a success for the new tough approach taken by the mining firms. At least 12,000 gold and 20,000 platinum miners were still pursuing an illegal wave of strikes that have now cost Africa’s largest economy over 10 billion rand just this year. The reported estimation was made by South Africa’s National Treasury.
In its interim budges policy statement, the treasury said, “Declining mining output and the spread of strike activity has depressed activity in related industries—including manufacturing, logistics and services, with negative consequences for GDP.”
The National Union of Mineworkers spokesman Lesiba Seshoka said that, “the worst in the gold sector is over. Members have accepted a new pay structure.” The Chamber of Mines’ offer, together with a package that was already on the table will give the mine workers a wage increase between 11 and 20.8 percent depending on the role in the mining process.
Spokeswoman, Marian van der Walt, for Harmony Gold, a gold mining company in the region, noted, “We’re very pleased that they signed and all of the uncertainty and turmoil in the market to an end.”
This agreement does not cover the platinum and coal sectors—only gold miners. The mine owners of these other two sectors are starting to count the cost of what may end up to be the worst labor unrest in the country since the 1980s.
Not all of the strikes are coming to an end. A six-week old strike at Anglo American Platinum, the world’s top producer of the precious metal, is not much closer to ending. It has 20,500 workers at its Union and the strikers continue to hold out for higher wages.
Finance Minister Pravin Gordhan told Parliament today, “We say very clearly that the problems in the mining area do reflect upon our growth prospects and it’s going to still take us some time to understand what the full impact on the growth is depending how and when these strikes actually end.”
For further information, please see:
All Africa – Gold Mining Companies, Unions Sign Agreements – 25 October 2012
Al Jazeera – South Africa Mines Agree Deal With Unions – 25 October 2012
Associated Press – ‘Worst is Over’ as South Africa Gold Miners Sign Pay Deal – 25 October 2012
Reuters – South Africa Strikes Ease as Gold Mine Pay Deal Reached – 25 October 2012
