Amcu, mines sign wage deal but job cuts loom

2014-06-24 16:26

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

The world’s three biggest platinum companies have signed a wage deal with the Association of Mineworkers and Construction Union (Amcu), but said that fallout from the five-month strike made job cuts and restructuring inevitable, setting the scene for more labour turmoil in the sector.

The three-year agreement with Anglo American Platinum, Impala Platinum and Lonmin ended South Africa’s longest and costliest strike. The union’s 70 000 striking members will return to work tomorrow.

Amcu president Joseph Mathunjwa said the companies had committed to “no retrenchments” for the duration of the deal, although his comment was at odds with statements from the firms.

Lonmin, the smallest of the three producers, said restructuring was inevitable to ensure its business remained afloat, especially while industrial demand for platinum in vehicle catalytic converters remained subdued.

Speaking to reporters and standing alongside his counterparts at Amplats and Implats after signing the deal, Lonmin CEO Ben Magara said the road ahead for the industry “remained a big challenge”.

The companies have lost more than R24 billion in revenue as a result of the strike and production will only resume in September.

Amcu had initially demanded that basic wages of miners be more than doubled immediately to R12 500 a month.

In the end, its members settled for increases that amounted to about 20% a year.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.