The Weekly Editorial

The wage and condition of employment deal reached by Gold mine owners and unions in the sector is an important step in the right direction. The deal, if ratified, will go a long way in stemming the tide of the debilitating mine strikes that are crippling economy.

The reserve bank and economists have already warned us to expect a reduction in economic growth as a result of the plethora of strikes in the gold and platinum mining sectors that have halted production. Reserve Bank governor, Gill Marcus, has also warned that there will be massive job loses in the volatile mining sector.

Gold mine owners and unions representing picketing workers said on Wednesday they had reached a deal to end months of industrial unrest that has curbed production of the precious metal. The Chamber of Mines and the National Union of Mineworkers (NUM) agreed to a series of pay rises that will now be put to striking workers for approval.

The deal will include a pay increase for entry-level workers, and an “allowance” for rock drill and other operators. Both parties emphasised that the new agreement was not a renegotiation of the current two-year wage. Instead, the deal cast aside lower pay categories, automatically giving entry-level workers a bump. It involves, for an example, moving miners from grade three to four and thus increasing their salaries.

Earlier, the chamber said it has recognised that there are certain anomalies that need to be addressed and has made proposals to address these. As part of the deal, there will also be a commission of inquiry into the working and living conditions at the mines.

It is commendable that the both parties have decided show leadership and restore stability to the mining industry and bringing an end to the unprotected industrial action that is besetting the industry. After all, the stability of the mining sector is important not only for the mining companies, the unions and the mineworkers, but also for the economic and social well-being of the country as a whole.

The agreement comes against the backdrop of the sector that is facing a spiral in strikes all over the country.

Petra Kimberley Diamond Mine and Anglo Gold Ashanti were the latest mines to be hit by the wild cat strikes by miners. Both mines have hammered a deal with the workers and are expecting things to normalise by the weekend. Workers at Petra’s Kimberley mine embarked on an underground sit-in on Tuesday, which halted operations.

Workers at the company’s mine near Koffiefontein in the southern Free State also joined the strike. There was also no clear indication of whether striking mineworkers at Anglo Gold Ashanti’s Mponeng mine would return to work as requested, spokesperson Alan Fine said. During a meeting at the mine outside Fochville in the North West on Friday, the company distributed pamphlets, urging workers to end their unprotected strike.

In the pamphlet, Mponeng general manager Randel Fadermann appealed to miners return to work. Workers downed tools on September 25, demanding monthly salaries of R18 500. At Kumba Iron Ore’s Sishen mine about 300 wildcat strikers continued with a sit-in, demanding an increase of R15 000 for all staff, spokesperson Gert Schoeman said.

Kumba suspended production at Sishen Mine on Thursday due to the strikers blocking access to the pit, creating an unsafe environment for mining operations. Gold One and Gold Fields remained quiet on Sunday. Gold One spokesperson Grant Stuart said there had been no violence over the weekend, after the suspension of around 1 400 striking workers.

The company initially intended holding disciplinary hearings over participation in the unprotected strike on Friday, but postponed the hearings to Monday at the request of the National Union of Mineworkers (Num). Workers embarked on an illegal strike last month at the Gold Fields KDC West mine in Carletonville and Beatrix mines, demanding a monthly pay of R12 500 after deductions.

Platinum bosses and unions are negotiating at the Chamber of Mines to hammer an industry wide deal. The appeals for 12 000 workers fired from Anglo American Platinum for participating in the unprotected strike are still on-going. Two other mining companies have collectively fired about 3000 miners for their involvement in the illegal strikes.

As we have said before, the problem in the mining industry goes beyond the issue of salaries, which are pathetic. It has to do with the depressing living conditions of miners as well as the abject poverty of communities surrounding mines, which makes billions of rands in profit every year.

The Bench Mark Foundation said this week that miners are not only unhappy about their salaries but they are frustrated by the socio-economic conditions that they find themselves in. Executive director John Capel said mining companies needed to stop being evasive about conditions in their mines and the surrounding communities. We could not agree more.