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Proposed gold sector strike unprotected by Labour Court

28th February 2014

By: David Oliveira

Creamer Media Staff Writer

  

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The Association of Metalworkers and Construction Union (AMCU) will appear in court next month to appeal the judgment that declared the union’s planned gold sector strike unprotected.

The judgment was handed down on January 20 by Judge Edwin Malahlegi, on behalf of Judge Hamilton Cele, who said the union must appear in court on March 14 to appeal the interim interdict.

AMCU had sought to proceed with strike action at several gold mining operations in January to protest against the gold sector wage agreement that was finalised in September, last year. The two-year settlement was reached between mining companies and trade unions, including the National Union of Mineworkers (NUM), Uasa and Solidarity, which represents 72% of the country’s gold sector employees, but not AMCU, which represents 17% of employees.

The agreement applied to all employees in the represented bargaining units, which included Category 4 and 5 employees and rock-drill operators, who received an 8% increase, and other employees, who received a 7.5% increase. Also, the living-out allowance was increased to R2 000 from R1 640.

The agreed increases and improved benefits were backdated to July 1. All employees, irrespective of union affiliation, have been receiving their increases and benefits since September.

Nevertheless, the Chamber of Mines (CoM) announced in January that the gold pro- ducers who are also members of the CoM confirmed they had been served a notice from AMCU regarding its intention to strike at JSE-listed gold mining company Sibanye Gold’s Driefontein mine, on the West Rand; Harmony Gold’s Kusaselethu mine, also on the West Rand; Harmony Gold’s Masimong mine, in the Free State; and at gold mining major AngloGold Ashanti’s South Africa-based operations.

While AMCU had participated in the September central-level negotiations, it had refused to accept the agreement and it is in this context that it has, subsequently, threatened the gold sector with strike action.

South Africa-based gold producer Harmony Gold CEO Graham Briggs, whose company would have been impacted on by the proposed strike, welcomed the court’s interim ruling and remains firm in Harmony’s belief that the wage agreement is fair and valid. He urged AMCU to encourage its members to adhere to the court ruling.

“Our message to all unions is this: Together, we can get this industry working. “By actively contributing to the success of the company, employees can and will share in its fortunes.”

Trade union Solidarity also expressed its concern about AMCU’s intention to take strike action.

The company stated that a strike could cripple an already fragile industry. Solidarity general secretary Gideon du Plessis added that AMCU kept a very low profile at last year’s gold negotiations.

“In the main, AMCU boy- cotted the negotiations and the signing of the agreement. “This gold mining agreement has been implemented since the end of September, and all gold mineworkers are already experiencing its benefits. “It has also led to more stability in the gold mining industry, although numerous retrenchment consultations are still taking place,” he added.

Du Plessis said another strike in the gold mining industry is, therefore, not in the interest of AMCU and its members, nor is it in the interest of the sustainability of the industry as a whole, as it can result in further retrenchments.

“We are concerned about the job security of AMCU’s members, as a strike in the gold mining industry could be unprotected and could put the future of thousands of mineworkers and their families at risk. “Although [AMCU’s] protected strike in the platinum industry is [its] constitutional right, entry-level mineworkers pay a high price for such a strike because of the ‘no work, no pay’ principle that applies,” he explained.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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