The Association of Mineworkers and Construction Union (Amcu) is finding itself increasingly on the back foot and with fewer options to save face in extracting itself from an extremely damaging protracted strike at Sibanye-Stillwater’s gold mines.
Since calling for the wage strike on November 21, calling some 14,000 of its members to stop work at three large gold mines, Amcu has suffered one set back after another in court. Behind the scenes there are talks with the Commission for Conciliation, Mediation and Arbitration (CCMA) that have come to naught.
Overtures to politicians, such as mineral resources minister Gwede Mantashe and President Cyril Ramaphosa, by Amcu have met with limited response. There is nothing they can do to pressure Sibanye to give in to Amcu’s demand for a R1,000 a month wage increase.
For Sibanye to capitulate to Amcu’s demand now ahead of wage talks in the platinum sector is unthinkable. Besides, it would put the company in a very difficult position with its three other unions representing half the workers at its gold mines.
For Amcu’s president, Joseph Mathunjwa, to take back any less than a R1,000 a month to his members would be met with outrage given the immense hardships they’ve gone through in forfeiting four months of salaries. Even if they got the R1,000 increase, it’s estimated it would take them 15 years to recoup their lost salaries, let alone repay the debt they’ve incurred to keep their families fed and at school since November.
Mathunjwa is nearly out of options. His position as the head of Amcu is surely on the line with this ill-conceived strike. His public comments lashing out at the judiciary, the government and the media are signs of his growing desperation. He has run into a brick wall at Sibanye and his spurning of various behind-the-scenes offers from the company to end the strike is leaving him increasingly isolated and unable to gracefully call his members back to work.
In the latest development, Amcu says it has accepted a CCMA proposal of a R5,700 payment from Sibanye, among other items, but that Sibanye had not accepted the proposal.
Grand Parade Investments on the mend?
Empowerment investment group Grand Parade Investments (GPI) is on the mend. Its food division is still incurring losses, but it expects its fast-food chain Burger King to turn a profit well before the end of the 2020 financial year.
News that it’s also looking to bring in an outside shareholder for Burger King, once the chain starts turning a profit, will see it return to what its best known for, which is holding a sizeable minority interest in lucrative businesses.
For a long time, GPI was well-known for its holdings in gambling concessions in the Western Cape, but then in 2013 it got the rights to operate Burger King in SA. This saw it shifting from being a relatively passive investor to having operational control of a business.
Sadly, this shift turned out to be a costly mistake for GPI. For example, its investment in chains Dunkin’ Donuts and Baskin-Robbins didn’t turn a profit in the three years it ran them and ended up costing the group R50m to shut them down.
Although the group’s prospects are improving, it still has a long way to go to regain the confidence of investors. The loss of faith in GPI can be seen in its share price falling from a high of R7.75 in October 2014 to its current valuation of R2.60.
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