JOHANNESBURG (miningweekly.com) – With South African mining companies’ CEOs earning, on average, 355 times that of the mining sector’s median earning, there is “no excuse” for mines not to provide their workers with living wages, said Association of Mineworkers and Construction Union (AMCU) president Joseph Mathunjwa on Thursday.
Speaking at a press briefing in Johannesburg, he outlined the union’s 2016 demands regarding wage and general working conditions at the country’s major platinum producers, namely Anglo American Platinum (Amplats), Impala Platinum (Implats) and Lonmin.
Mathunjwa reiterated AMCU’s long-held demand for all mineworkers in the platinum industry to receive an entry-level salary of R12 500 a month. The union is also demanding increases of about 15% for higher work categories and overall pay improvements for allowances and benefits.
“The companies have retrenched [workers], so I think they are well positioned to offer better wage deals than they have previously,” Mathunjwa said. He also sought to refute claims that higher wages resulted in increased unemployment.
“It is irrational to draw correlations between wage increases and job losses, as employers are given a blank cheque when it comes to retrenchments in this country.”
He informed the media that AMCU intended to start negotiations with the respective mining houses during the course of next week. The previous platinum sector wage agreement was reached in 2014, expired on June 30 and any agreements reached during the wage negotiations would be backdated to July 1. AMCU is seeking a one-year wage agreement, though Mathunjwa said that if his members gave the union a mandate to secure a multiyear agreement with the mines, this would be considered as well.
“AMCU’s struggle is to achieve a living wage in the mining sector that addresses the cost of living for all workers. According to our analysis, a living wage is one that is between R10 000 and R20 000 a month,” Mathunjwa said.
He stressed that AMCU did not harbour any intentions of going on strike and only wanted to achieve the best possible outcome for its members. However, he warned that if the platinum producers did not comply with the union’s demands, strike action would be considered as a last resort.
The previous platinum sector wage negotiations, in 2014, ignited a five-month-long strike that cost the sector about R24-billion. The stayaway ended when a three-year deal was struck, in terms of which employees earning a monthly basic salary below R12 500 received an increase of R1 000 a month for the first two years. At Lonmin, the same increase applied to the third year, however, Amplats and Implats agreed to a R950 a month increase for the third year.
Further, employees earning R12 500 a month or more, or whose basic wage rate reached that amount during the course of the three-year agreement, received an 8% increase for the first two years, and 7.5% thereafter.