[miningmx.com] — IMPALA Platinum on Tuesday raised the prospect that
production at its Rustenburg mine would be negatively affected for up to two weeks,
following an announcement that the world’s second largest platinum producer had
begun to fire 5,000 rock drill operators (RDOs) who had downed tools on Friday.
“The process [of firing and rehiring] could take one to two weeks,’ said Alice
Lourens, spokesperson for Impala Platinum. “The RDOs will have to reapply for their
positions. We will start rehiring from tomorrow [Wednesday],’ she said, adding that
only nine RDOs reported for work today.
The volatile nature of labour relations in South Africa reared its head last week when
the RDOs at Rustenburg led an unofficial stoppage amid a dispute thought to relate
to salaries.
Lesiba Seshoka, spokesperson for the National Union of Mineworkers (NUM) said the
dispute turned on an 18% wage increase provided to miners, excluding RDOs, at
Rustenburg where turnover has lately been around 20% of the total workforce. “This
has been badly managed by Impala,’ said Seshoka. “Impala said at the close of its
wage discussions in October that it couldn’t provide any more monetary benefits. It
said it didn’t have the money.’
NUM would engage with the RDOs on Wednesday, he said.
Lourens said that NUM was fully aware of the retention increase. She confirmed the
award to miners was made subsequent to the closure of wage discussions in which
Impala and NUM agreed on annual increases of up to 10% for workers.
Lourens also confirmed earlier reports that some 3,000 to 3,500 in platinum ounces
would be “lost’ per day. This was equal to some R35m in revenue per day, roughly
one percent of Impala’s revenue in its last financial year. Shares in Impala were
relatively untroubled, however. The share was down less than a percent on Tuesday
and had fallen 2.4% since the work stoppage was called.
The previous experience of Lonmin, which dismissed 9,000 employees at the Karee
division of its Marikana mine in May last year, will not make pleasant reading for
Impala. After two weeks of an unprotected strike, Lonmin had only managed to rehire
two-thirds of its striking employees.
John Meyer, an analyst at UK-based Fairfax Securities, said the signs were ominous
for the South African platinum industry. “No wonder people are looking at Zimbabwe,’
he said.
“The platinum industry is known for its double-digit wage increases, but workers
have been spoilt. This kind of thing could kill the industry, especially as the end-
product prices are under such pressure,’ he said.
