PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Utopian Idealist
 
Comments: 13
Article views: 423
 
 
Latest Badges:

 
View all Utopian Idealist's badges.
 

Platinum strike will affect us all

14 May 2014, 10:43

The ongoing platinum mining strike is the tinder box that is going to ignite violence and unrest on a new scale and from this point there are only two ways things can go.

Firstly and more likely, the mining houses will refuse to negotiate any further and will issue termination of employment notice to those miners who refuse to accept their final offer and return to work. As witnessed previously at Marikana these people do not respond well to ultimatums and will surely ramp up levels of violence and intimidation. It is near impossible to do business in that sort of environment and already weary foreign investors will no doubt start pulling investment from related industries, having a substantial negative effect on the economy.

There is of course the second and less likely option, in this scenario the striking miners manage to strong arm their employers into accepting their demands and return to work. This is however, unlikely as the mining houses have unanimously declared that the salary demands are unaffordable and raising the cost of their products would make them uncompetitive in the global market place which is ultimately financial suicide. But let’s for a moment says that they are able to give these miners what they want and through a various cost cutting methods remain competitive. This would have set a precedent that will no doubt be noticed by the disgruntled workers in other industries, they will now feel empowered in the belief that if they can hold out long enough to hurt their employers, they too can enjoy a substantial increase in remuneration. Of course in this scenario once again the economy will take a huge knock as output from the effected industries slows.

Both of these scenarios form a conundrum for the ruling party. They have just won an election by campaigning on the promise of increased wages, working and living conditions for the lowest paid workers. They cannot obviously be seen to take a hard line with the miners and they will definitely not want another Marikana massacre. With service delivery strikes a daily occurrence the last thing they want right now is to make a martyr of the miners that would unite all these disenfranchised groups. In that same vein the ANC lead government cannot be seen as too soft either, as investors will surely feel that SA is not as business friendly as it once was and the expectation of further damaging strikes  will only add to their already negative view of the investment environment within the country. This comes at a time when the government has its hand out in expectation of securing further loans that will enable it to carry out its myriad of infrastructure projects detailed in the National Development Plan.       

So where to from here? I have to admit I don’t see a very bright light at the end of the tunnel. The ANC’s refusal to deal with this issue effectively pre-election has allowed it to spiral out of control and the resulting standoff can only have negative implications.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

24.com 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
13 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Daniel Sutherland
Imminent Cabinet reshuffle: the w...

We need to forget about Helen Zille and her tweets. We need to forget about the Spur incident and all other side issues. Right now the recall that Pravin Gordhan just got from Zuma783 is all that matters. Read more...

0 comments 3600 views
Submitted by
Alex Harlies
Pravin, come back here this insta...

It seems like a common occurrence now that whenever the Rand gains momentum and begins appreciate in value, something must always bring that momentum to a grinding halt. Read more...

0 comments 1786 views
Submitted by
Larry
The Gupta angle: Gordhan's recall

The Gupta's are scrambling, and my guess is that they want this case to go away. The only way for this to happen is for the finance minister to withdraw. Read more...

0 comments 703 views
Submitted by
Andrew Rampf
Who benefits when the rand falls?

It seems to me that every time the Rand is doing well, there is some announcement from the Presidency or the NPA that sends the currency into free fall or generates a strong rally. Read more...

0 comments 2699 views
Submitted by
This side of x
The Twitter soap opera, an outrag...

Public servants should be banned from using any social media during office hours.  Read more...

0 comments 162 views
Submitted by
Commissar
Another Jacob Zuma fiasco looming

What an absolute disgrace for us to have Jacob Zuma at the helm, costing SA each and every time he issues and instruction and or takes action. Read more...

0 comments 2196 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2017 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

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 24.com network.

Settings

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.