The most recent update on the Platinum mine sector strike taking place in South Africa
The impending platinum strike announced by The Association of Mineworkers and Construction Union (AMCU) on Thursday, 23 January 2014 is underway and already in it’s 6th day.
AMCU union workers, have requested an entry level monthly increase of R12,500, and have been in talks with the Johannesburg CCMA Head Office as of Friday, 24 January 2014.
AMCU representatives were present, as well as Mineral Resources Minister Susan Shabangu, Labour Minister Mildred Oliphant and senior management of Platinum, Lonmin and Anglo American Platinum.
Joseph Mathunjwa, president of the Association of Mineworkers and Construction Union, was accompanied by dozens of the AMCU union members, all clad in green AMCU t-shirts.
It was stated that employers Impala Platinum, Lonmin, Anglo American Platinum and AMCU would have their talks facilitated by The Commission for Conciliation, Mediation and Arbitration.
As a result of this industrial strike, total platinum production loss amounts to an approximated 4000 ounces per day at all affected Platinum mines, resulting in a total revenue loss of R100 million, all based at current market pricing.
Chris Griffith (Amplats chief executive), Terence Goodlace (Implats chief executive) and Ben Magara (Lonmin chief executive), all agree that a prolonged strike could further damage South Africa’s reputation as an attractive business and investment destination.
Mines have felt the need to further boost security as threats of violence have become heightened due to the animosity caused by the strike. Several incidents have been reported, such as cars being pelted with stones and tyres being burnt in roads that were barricaded. Mine security workers provoked AMCU members by spraying them with water and therefore the AMCU members retaliated by pelting the security staff with stones.
Due to the strike, the Platinum mines are losing an average of 2% revenue per day, and with the mine workers asking for an entry-level increase of R12,500, the future does not look bright for the Platinum mine industry.
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