JOHANNESBURG: The world’s three biggest platinum firms signed a wage deal with South Africa’s AMCU union yesterday but said that fallout from a five-month strike made job cuts and restructuring inevitable, setting the scene for more labour turmoil.
The three-year agreement with Anglo American Platinum, Impala Platinum and Lonmin ended South Africa’s longest and costliest strike. The union’s 70,000 striking members will return to work today.
Association of Mineworkers and Construction Union (AMCU) president Joseph Mathunjwa said the companies had committed to “no retrenchments” for the duration of the deal, although his comment was at odds with statements from the firms.
Lonmin, the smallest of the three producers, said restructuring was “inevitable” to ensure its business remained afloat, especially while industrial demand for platinum in vehicle catalytic converters remained subdued.
Speaking to reporters and standing alongside his counterparts at Amplats and Implats after signing the deal, Lonmin CEO Ben Magara said the road ahead for the industry “remained a big challenge”.
The companies have lost over 24bn rand ($2.26bn) in revenue as a result of the strike and production will only resume in September.
The Mining Minister Ngoako Ramatlhodi, who played an important mediation role after assuming office last month, told Reuters that he wants to overhaul union-friendly labour laws to avoid another prolonged and nationally damaging stalemate.
Reuters
