NUM strike is drawing to close, say reports

[miningmx.com] – A STRIKE called by the National Union of Mineworkers NUM) in the South African gold industry involving about 80,000 workers was ending, according to a report by the BBC which cited comments to AFP by Lesiba Seshoka, spokesperson for the NUM.

“This may possibly mark the end of the strike,” Seshoka told the newswire regarding an offer put to the union yesterday and thought to be similar to the 8% increase accepted by the NUM by Evander Gold Mines and Village Main Reef earlier this week.

Bloomberg News said that more than 60,000 South African gold miners began resuming work last night following a 48-hour strike as they accepted an improved, above-inflation pay offer from companies including AngloGold Ashanti Ltd. and Sibanye Gold.

“The workers themselves are saying they are happy,’ Seshoka told Bloomberg News. However, miners at Harmony Gold Mining’s sites in Free State province had not said they were happy with the offer, Seshoka told the newswire service.

Sibanye Gold issued a statement to the JSE earlier today in which it said discussions were continuing.

“Engagement with NUM continues to be positive and the NUM will be meeting its members at the Beatrix Operations this morning. The market will be kept informed of further progress,” said Sibanye Gold of its Free State province mine.

It reported that its Kloof mine on the west Rand of Johannesburg had resumed production starting from the night shift of September 5 taking the group’s operations to over 80% of capacity.

This was after less than a fifth of Kloof’s workforce turned up at the first two shifts at after the National Union of Mineworkers (NUM) had called a strike over wages, effective from the night shift of September 3.

The NUM is still the majority union at Kloof with Sibanye Gold’s other major operation, Driefontein, dominated by the Association of Mineworkers & Construction Union (AMCU). Beatrix is controlled by the NUM.

“Together with the Driefontein Operations, which have continued to operate normally through the strike, Sibanye Gold is now operating at over 80% of its planned capacity,” said Sibanye Gold in a statement to the JSE.

Sibanye Gold CEO, Neal Froneman, also denied earlier reports, citing AMCU spokesperson, Joseph Mathunjwa, that union members had been intimidated and harmed at Sibanye’s sites.

“In an emotionally charged environment involving large numbers of people, there is always the risk of intimidation and violence,” said Froneman who added that while there had been “sporadic incidences” in the past week, the strike had been peaceful on the whole.

“Sibanye Gold Protection Services in cooperation with the South African Police Service have done an excellent job in protecting Sibanye Gold’s employees and assets and proactively controlling and managing a difficult situation,’ Froneman said.

If the Chamber of Mines of SA confirms an agreement has been forged with the NUM, as seems to be the case, it will represent a dramatic turnaround in events. The NUM had, until earlier this week, showed no intention of backing down from its demands for a 60% increase on entry-level wages.

However, it remains to be seen how AMCU will respond to NUM agreements. It had demanded 120% wage increases in some instances and has not changed its position, keeping its cards close to its chest especially after NUM called a strike.