Platinum Mining: Protracted Strike by South African Workers

Industrial action is in its fifth month causing negative growth in the economy

Spokespersons for the three major world producers of platinum announced on June 12 that firms had reached a tentative agreement to end a strike that has threatened the South African economy with a renewed recession.

Members of the Association of Mineworkers and Construction Union (AMCU) have led 70,000 of their members in a protracted strike which is credited in the negative growth ratings during the first quarter inside the country.

South Africa contains approximately 80 percent of the world’s supply of platinum which is an essential mineral in the automotive and transport industries internationally. AMCU is demanding a minimum wage for miners of 12,500 Rand ($US1,163) per month. It appears that the tentative agreement with the mine owners will be substantially less than this amount demanded.

AMCU President Joseph Mathunjwa on June 12 traveled into the Rustenburg area which is the center of mining activity. He was there to discuss the possible agreement with union leaders and rank-and-file workers.

Mine bosses are eager to have the situation in Rustenburg in the North West Province to return to some semblance of normalcy after two years of divisive and violent labor struggles. In August 2012 the situation erupted with a wildcat (unprotected) strike at Lonmin.

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