Cut mine jobs and we will strike, says union

UNDETERRED by companies in the gold and coal sectors pleading poverty, nor by their “crocodile tears”, National Union of Mineworkers (NUM) general secretary David Sipunzi said the union would resort to strike action if firms moved to shed jobs.

The NUM’s tough talk was spurred by the prospect of as many as 11,000 of its members losing their jobs as a result of bruising cost-cutting measures in the mining sector that could see 40,00050,000 people go out of work.

Nearly 5% of the NUM’s members face retrenchment despite the fact that organised labour, the state and mining companies are grappling with a broader agreement on avoiding job losses. Union deputy general secretary William Mabapa said: “That is not a final confirmation all of them will be fired … it could be half this number.”

Mr Sipunzi said yesterday the union would pursue its members’ demands in the ongoing gold and coal wage talks and it would not be thrown by the “crocodile tears” of companies citing a “perfect storm pertaining to weak commodity prices and spiralling costs”.

Also, NUM chief negotiator Peter Bailey said the union would ask the Chamber of Mines to consolidate its “scattered” coal-sector wage offer when negotiations resumed on Tuesday.

The NUM has demanded a 15% pay increase in the coal talks, while companies’ offers are in the 1.68%6.5% range. The union has said it was willing to negotiate.

It also lauded the suspension of the operating licence of Glencore’s Optimum Colliery, which “set a good precedent”.

Mineral Resources Minister Ngoako Ramatlhodi, citing an “inhumane” job cut process, revoked the licence this week.

The mine has applied for business rescue and bemoaned its uneconomic coal supply contract with Eskom.