THE mining sector is bracing itself for tough wage negotiations as unions, engaged in a war to win members, are unlikely to back down unless significant concessions are made by companies.
“We will be flexing our muscles in terms of our demands and good luck to those who think we will settle easily,” said Lesiba Seshoka, spokesman of the National Union of Mineworkers (NUM).
The NUM has lost significant numbers of members to the Association of Mineworkers and Construction Union (Amcu), whose membership is estimated to have grown by more than 100,000 since violent wildcat strikes in the platinum sector last year forced companies to award wage increases outside the normal bargaining processes.
“It was a difficult year for the mining industry. But 2013 will be even more difficult than last year,” said Bheki Sibiya, CEO of the Chamber of Mines.
“Mining companies will suffer as Amcu and the NUM go head-to-head to offer increasingly more attractive wage offers to their members.”
Besides a fight over pay, the NUM and Amcu are at loggerheads over the way in which wage negotiations should take place in the platinum sector.
Government, the NUM and members of the Chamber of Mines are in favour of the establishment of a bargaining council for platinum, similar to those that exist in the gold and coal sectors, where wages and increases are set across the industry.
Platinum companies negotiate wages on a company level with unions, which has led to discrepancies in pay for different job grades. Amcu is in favour of maintaining the status quo and has so far objected to centralised bargaining. The union will meet platinum companies tomorrow to discuss the issue.
It remains to be seen whether Amcu, which represents 14% of workers in the gold sector, will accept an invitation from gold miners to join the centralised negotiations this year.
Mr Seshoka said the NUM has no objections to Amcu joining, while Jimmy Gama, treasurer of Amcu, said his union will consider joining the talks.
However, Amcu’s track record shows that it is unlikely to easily agree to participate in centralised bargaining. In the construction sector, where it is a minority union, it has tried to bargain at plant level despite the civil engineering sector establishing a bargaining council.
“It has been completely disrespectful of the arrangements on bargaining at a central level in the industry,” said Rod Harper, senior labour partner at Cowan-Harper Attorneys.
He has represented clients who have obtained interdicts against Amcu in recent months to prevent unprotected strikes.
“It is a tactical issue. If a union is not strong enough in the industry, it will attempt to force bargaining at company level where it may be stronger,” Harper said.
Mr Sibiya said it is not yet clear what Amcu is going to bring to the table. “Amcu is growing quickly and at face value it appears that its capacity to operate as a union is limited. On the other hand we have the NUM fighting back for its place,” he said.
Workers might also decide to take their demands directly to management, as was seen in some cases in the platinum sector last year.
A recent report by the Human Sciences Research Council found a significant decline in confidence among South Africans in trade unions, with only 29% saying they trusted unions in 2012, compared with 43% in 2011.
Gold miners said they are working hard to improve engagement with employees and the unions.
“We’ve continued intensive engagement to help create a peaceful and constructive set of wage talks with no costly and damaging work interruption,” said Alan Fine, spokesman at AngloGold Ashanti.
There is also concern that job losses — Amplats is in talks with unions and government to cut 14,000 jobs — may lead to more labour unrest and instability, further hurting miners that are struggling to deal with rising costs and weak commodity prices.
Analysts predict that a recovery in demand and supply issues in South Africa, which currently provides about 70% of global platinum output, may boost the price to as much as $1,800 an ounce this year, from the current $1,534.
Neelofar Shariff, mining research analyst at Frost & Sullivan, said the outlook for platinum is positive. “It is important, however, that key stakeholders, including government, mineworkers and mine companies, reach a middle ground to mutually benefit from the mining of platinum as a resource.”
Source:
BDLive
