[miningmx.com] — SOME of the damage caused by the spate of strikes
across the mining industry was already permanent, one of South Africa’s major gold
producers said on Friday, warning that job losses were inevitable even if the current
impasse with labour was brought to an end soon.
Gold Fields, the country’s second biggest producer of the yellow metal, said the
strikes at its Beatrix and KDC West shafts have resulted in lost production of 35,000oz
during September alone, a loss of R530m in lost revenue at the prevailing gold price.
“The on-going unlawful strike action in South Africa is of concern and will, even if
resolved in the near term, increase the likelihood of major restructuring in the South
African gold mining industry, including at Gold Fields,’ said CEO Nick Holland.
The company produced a total of 810,000oz during the September-quarter, 10% less
than in 2011, of which the South African operations contributed 386,000oz (47%).
The warning came as union leaders expressed doubt that workers would by Monday
have accepted a wage hike proposal that was tabled by the Chamber of Mines (CoM)
earlier this week on behalf of AngloGold Ashanti, Gold Fields and Harmony Gold.
The increases put forward by the CoM represent a range of between 1.5% and 2%,
excluding an additional allowance for rock drill operators. Based on the offer, an entry
level worker would earn a basic salary of R5,000 and a total cost-to-company package
of R8,665 per month. Cost-to-company items include a living out allowance, medical
aid, a holiday leave allowance as well as provident fund contributions.
CoM claims the offer falls inside an existing two-year collective agreement signed in
2011.
The initial deadline for the acceptance of the offer was set for Thursday but has been
extended until Monday. The offer is conditional on workers’ acceptance by that date,
with some employers threatening to implement the interdicts that they’ve earlier
obtained against the unprotected strikes. Such measures could include evictions from
hostels as well as dismissals.
On Friday, NUM spokesperson Lesiba Seshoka accused the CoM of being inflexible. “If
the Chamber wants to bring this to an end, they have to be open to discuss the issue
further,’ said Seshoka. “It cannot only be NUM which is looking for solutions.’
Another union leader said he would be amazed if the offer gets accepted. “The
expectations (on salary increases) are high and this strike is about a lot more than
wages only,’ he said. Both he and Seshoka agreed that intimidation continued to
influence some workers’ decisions.
Mines minister Susan Shabangu, meanwhile, warned that the economic knock-on
effects of the strike would be felt much wider than only the mining sector.
“What we’re seeing is going to have a major impact on the revenue of the country
next year,’ Shabangu told a meeting of the Young Communist League on Thursday.
“We’re going to feel it; you’ll discover that what is suppose to come to education will
be less and what is suppose to go to health will be less.’
Also on Friday, Village Main Reef issued an ultimatum to some 1,700 striking
employees at its marginal Blyvoor operation, giving workers a deadline of the night
shift on Sunday to return to work.
“Failure to heed the ultimatum by any of these employees will result in that
employee’s services being terminated,’ the company said.
