/ 3 August 2005

Miners reach ‘point of no return’ with gold producers

About 80 000 mineworkers will down tools on Sunday night for the first strike in the gold sector since 1987, the National Union of Mineworkers said on Tuesday.

This came after at least two unions in the gold industry on Tuesday afternoon received strike notices from the Commission for Conciliation, Mediation and Arbitration (CCMA).

The unions are the National Union of Mineworkers (NUM) and Solidarity.

”The National Union of Mineworkers, after receiving the certificate to strike this morning [Tuesday] from the CCMA, will be issuing the gold producers in the Chamber of Mines with a notice to strike,” said NUM spokesperson Moferefere Lekorotsoana said.

The 48-hour strike notice was to be delivered to the Chamber of Mines on Tuesday afternoon.

”We have reached a point of no return with gold producers at this point,” NUM general secretary Gwede Mantashe said.

”The ball is now in their court to find meaningful ways of resolving the dispute at hand.”

The Chamber and union deadlocked on several issues. These included a wage increase of between four and five percent offered by the chamber, while NUM is demanding 12%.

Job grading, which was still outstanding from the 2003 wage agreement, had to be addressed, while pension fund related issues had to be cleared up.

NUM said it would embark on the strike on Sunday.

”Come this Sunday every wheel of every shaft shall come to a standstill,” Mantashe said.

Solidarity said in a statement that it had also received a notice to strike after mediation to resolve the wage increase impasse had failed.

”The request for a strike certificate came after the Chamber of Mines made an offer of only 4,5% to the greatest proportion of 140 000 miners at the country’s three biggest mining groups,” union spokesperson Reint Dykema said.

Solidarity is demanding 10%.

”The problem with the Chamber’s current offer is that it is not in line with the inflation experienced by workers in the mining industry.”

Dykema said the union now had to get a mandate from its members to embark on a strike. He could not give a date and said it would not necessarily coincide with NUM’s strike.

”We have to get a mandate from our members and then we have to issue the chamber with a 48-hour strike notice.”

The United Association of SA (Uasa) said on Tuesday it would know on Friday afternoon if it would strike at gold mines.

Uasa minerals division general manager Tim Kruger said his union’s leaders and representatives from the gold mining companies would meet in Johannesburg on Tuesday to decide on the way forward.

The union could not be reached on Tuesday afternoon for an update.

Uasa is demanding an eight percent salary increase. The chamber confirmed that it had received the strike notice from NUM.

The chamber’s chief negotiator, Frans Barker, said in a statement issued late on Tuesday afternoon that the union’s decision to strike was regrettable.

”We regret NUM’s notice of strike action on the gold mines. Strikes make the search for settlement more difficult, rather than less difficult.

”Disrupting production is going to put jobs and ounces in jeopardy, which the industry can’t afford.”

He said the Chamber’s offer was a ”serious and constructive approach to reconciling parties around a growth agenda for the industry”.

Barker said the Chamber will continue to explore a settlement with the NUM.

”Time is short and the stakes are high, but I’m hoping we will find each other.”

The chamber is offering a salary increase of between 4,5% and five percent, depending on the job category, a 0,5% increase in employer contributions to the provident fund and a 10% increase in living out allowances.

”This wage offer well exceeds the inflation rate (CPIX) at 3,5%.”

Barker said most of the chamber’s member gold mines were also offering a gold price bonus scheme. It allowed for the payment of bonuses to employees related to increases in the gold price. Barker said mines could not give high salary increases that would put jobs in jeopardy over the long term.

”In the first quarter of this year approximately 80% of gold production on member mines was marginal or unprofitable. Over 100 000 employees are employed on these marginal and loss making mines.”

South Africa is the world’s largest gold producer and produces 14% of the total gold production. – Sapa