A matter of balance
Wage negotiations between labour unions and the world’s biggest platinum miners this year are quite likely to progress more smoothly than in the recent past, despite some early warning signals.
Discussions on a new multi-year wage agreement will begin as soon as the trade unions table their formal demands. Manzini Zungu, spokesman for the Association of Mineworkers & Construction Union (Amcu), which is the majority union at the three biggest platinum companies, says Amcu had hoped to communicate its wage demands to companies and the media last week but there had been some delays, which could not be blamed on labour alone. Amcu is still forming its task teams to deal with the preliminary issues that need to be settled before talks on wages can begin.
Earlier this month two people were shot at Northam’s Zondereinde platinum mine, apparently stemming from rivalry between the National Union of Mineworkers (NUM) and Amcu.
A month ago Amcu threatened a strike at Sibanye Gold’s Kroondal platinum mine over benefits and allowances, and there were reports of intimidation, but management immediately suspended six shop stewards and laid criminal charges against one.
The last negotiations over a three-year wage agreement began in mid-2013 and extended into the middle of 2014. Agreement was only reached after a violent fivemonth strike. Those difficulties arose partly because of employers’ previous award of increases to certain categories outside the bargaining process and partly as Amcu emerged as a new union, taking a militant stance to attract members.
Now Amcu has found its footing in the platinum sector, it may be less militant, more experienced in wage bargaining and better administered, though it did not sign the mid-2013 peace agreement between mining companies and the other trade unions which was intended to bring stability to the mining sector.
A labour expert, who asked not to be named, says there is a better than even chance of relatively peaceful negotiations in this round. It is likely some lessons were learnt from the 2014 experience. It would also be relatively unusual for another strike to occur within two years because workers had suffered considerable losses in 2014.
Implats group executive: corporate relations Johan Theron says preparations for this round of wage negotiations have been under way for some time. After the previous wage negotiations, various joint union and management task teams were formed which have researched wage-related challenges and formulated proposals that could be considered during this round. There has also been training and communication to improve understanding of the negotiation process and the economic realities facing the sector, he says. “We believe the labour environment has improved significantly from the fractious post-Marikana period in which the previous negotiations were conducted. We have all learnt from our previous experience, we are better prepared, our mutual understanding of the challenges faced by the industry and workers is much more aligned, and we have started to inculcate shared values of respect and care in our day-to-day deliberations.”
He adds wage negotiations are naturally challenging and the risk of a strike remains, “but all of the work we have done over the past two years provides us with reasonable confidence that we will achieve more sustainable outcomes this time without violence and/or unnecessary disruption to the economy.”
One of the issues that has raised alarm bells at the outset of each round of wage negotiations in the mining sector is the inflated demands tabled by trade unions. Initial wage hikes demanded in 2013 were up to 60% by the NUM and up to 150% by Amcu. After months of striking and lost earnings, the settlement agreed was 7%-8% on average per year for three years for most workers, with a slightly greater increase for the lowest-paid categories.
Last week Bloomberg reported the NUM had tabled a demand for a 20% increase at Amplats, for a minimum of R12,000 a month for underground workers and R11,000/month for those working on surface. NUM deputy general secretary William Mabapa could not be reached for confirmation, while Amplats declined to comment ahead of negotiations.
Zungu says the figure of a R12,500 minimum entry-level wage that the media has often cited as a core Amcu demand is only one item on its list. There are many other elements to the negotiations.
Theron says the financial position of the industry and the impact of the low metal prices on companies’ continued financial viability is well understood and is reflected in Implats’ most recent financial results, capital raising and labour restructuring. But at the same time mining companies understand how the drought and the economic slowdown are affecting workers’ disposable incomes. That has to be balanced with the financial position of the industry.
‘‘ WE BELIEVE THE LABOUR ENVIRONMENT HAS IMPROVED SIGNIFICANTLY FROM THE POSTMARIKANA PERIOD JOHAN THERON