Labor disruptions paralyze mining industry in South Africa, wage hike demands add fuel to fire

Mining News  |  2013-05-20 22:34:58   |   By

The illegal labor strife by workers at the Rustenburg chrome mines has badly affected the mining industry

CAPE TOWN (Scrap Monster) : The illegal labor strife by workers at the Rustenburg chrome mines has badly affected the mining industry. To supplement to the labor chaos, the National Mineworkers Union (NUM) is reported to be negotiating for a huge hike in wages.

The members of NUM started strike at the Lanxess mines over the issue of bonus payment. The dialogue between union heads and company management failed to produce any outcome. The company obtained a court injunction Friday ordering all workers to return to work, but in vain. The Association of Mineworkers and Construction Union (AMCU)- the leading union among the platinum mining workers has demanded a meeting with President Jacob Zuma to address the issues of attacks against its members.

Meanwhile, the wage negotiations with the Chamber of Mines have raised fresh threats to the industry. The NUM in its discussions has demanded 60% wage hike to all mineworkers.NUM has demanded to hike the wages of surface workers from existing $500 to $750 and those of underground workers to be raised from the existing $530 to $850.

The mining companies however state that they cannot afford such a huge hike as the industry is already weak. Many mining majors have reported heavy loss in their operations.