Amplats should not concede to Amcu demands, says analyst

Anglo American Platinum, the largest producer of the metal, will do better to see out the strike at its mines than by giving in on planned job cuts, said Coronation Asset Management.

Mines run by the Johannesburg-based company known as Amplats have been halted since September 27 because of a strike called by the Association of Mineworkers and Construction Union (Amcu) over proposals to cut 3 300 jobs.

 

The union, the largest at Anglo American Platinum, is challenging a decision by the company to consolidate five mines into three at its Rustenburg complex. The sites are losing more than R1-billion every six months, chief executive Chris Griffith said on August 30. Plans to cut as many as 14 000 jobs, announced in January, were scaled back following pressure by unions and the government.

 

"It is better in the long-term interest of the business to take a strike to establish a realistic wage base and to put the company in a profitable position," Neill Young, an analyst at Cape Town-based Coronation, said on Tuesday.

 

The strike is continuing and Anglo American Platinum remains in talks with the Amcu union, Mpumi Sithole, a company spokesperson, said. A spokesperson for Amcu wasn’t available to comment.

 

Implement job cuts
Amplats has no choice other than to implement the job cuts, according to RBC Capital Markets LLC analyst Des Kilalea.

 

"This is a business that in its current structure doesn’t work," Kilalea said by phone from London. "They're going to lose money either way."

 

The Johannesburg Labour Court on Tuesday reserved judgment in a case brought by the National Union of Mineworkers (NUM) in a separate bid to halt the job cuts, union spokesperson Lesiba Seshoka said. The NUM was unseated by Amcu as Anglo American Platinum’s biggest recognised union in March.

 

Less than 20% of workers reported for duty at the company’s operations in the North West province on the first day of the strike, the company said on Friday. Operations at its processing division were not interrupted, the company said. – Bloomberg

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.


The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

Rene Vollgraaff
Guest Author
Advertising

ConCourt settles the law on the public protector and interim...

The Constitutional Court said it welcomed robust debate but criticised the populist rhetoric in the battle between Busisiwe Mkhwebane and Minister Pravin Gordhan

Where is the deputy president?

David Mabuza is hard at work — it’s just not taking place in the public eye. The rumblings and discussion in the ANC are about factions in the ruling party, succession and ousting him
Advertising

Press Releases

Covid-19 and Back to School Webinar

If our educators can take care of themselves, they can take care of the children they teach

5G technology is the future

Besides a healthcare problem Covid-19 is also a data issue and 5G technology, with its lightning speed, can help to curb its spread

JTI off to court for tobacco ban: Government not listening to industry or consumers

The tobacco ban places 109 000 jobs and 179 000 wholesalers and retailers at risk — including the livelihood of emerging farmers

Holistic Financial Planning for Professionals Webinar

Our lives are constantly in flux, so it makes sense that your financial planning must be reviewed frequently — preferably on an annual basis

Undeterred by Covid-19 pandemic, China and Africa hold hands, building a community of a shared future for mankind

It is clear that building a community with a shared future for all mankind has become a more pressing task than ever before

Wills, Estate Administration and Succession Planning Webinar

Capital Legacy has had no slowdown in lockdown regarding turnaround with clients, in storing or retrieving wills and in answering their questions

Call for Expression of Interest: Training supply and needs assessment to support the energy transition in South Africa

GIZ invites eligible and professional companies with local presence in South Africa to participate in this tender to support the energy transition

Obituary: Mohammed Tikly

His legacy will live on in the vision he shared for a brighter more socially just future, in which racism and discrimination are things of the past

The best local and international journalism

handpicked and in your inbox every weekday