Costs are mounting as the protracted wage strike at Sibanye-Stillwater’s gold operations is in its second week, with workers having lost more than R300m in wages so far.
The Association of Mineworkers and Construction Union (Amcu), and the National Union of Mineworkers (NUM), the two largest unions at Sibanye, have vowed to continue with the action despite the mounting losses.
Sibanye-Stillwater spokesperson Memory Johnstone told Business Day that striking employees lose R22m per day during the strike.
“As of today [Wednesday], the strike has continued for 14 days. To date striking employees have lost R308m. Government loses R2.5m per day in PAYE income tax and salary-related levies which amounts to R35m to date,” Johnstone said.
Amcu and NUM downed tools two weeks ago and embarked on an indefinite strike action, in support of their demand for above-inflation wage increases.
A protracted strike risks depriving Sibanye of an opportunity to take advantage of a gold price that jumped from a low of $1,782 at the beginning of the year to $2,070, the highest since August 2020.
Amcu’s five-month strike from November 2018 at Sibanye’s gold operations cost the company R1.6bn and lost production of 110,000oz of gold, while nine people died. Workers forfeited R1.5bn in pay during the industrial action after which Amcu accepted terms that had been accepted by NUM, Solidarity and the United Association of SA (Uasa).
Guaranteed income
Johnstone said it is unknown how much production output has been lost since the strike began on March 9.
On average, an entry-level employee receives guaranteed income of R16,036 per month, which includes basic pay, a holiday leave allowance, living out allowance and provident fund.
NUM president Joseph Montisetse told Business Day, “Our strike is not based on what management is saying [regarding salary losses]. It is based on the [revised] offer they have put on table. As long as management is not acceding to our demands, the strike continues. They must come up with an offer that we will consider as unions.”
Sibanye has been implementing a lockout on striking workers since March 10, and vowed to keep it in place until Amcu and NUM accept the company’s revised wage offer, which has since been accepted by Solidarity and Uasa.
Solidarity and Uasa members were allowed to return to work after the two smaller unions accepted the revised wage offer that resulted in surface and underground workers getting a R700 pay rise and a R100 increase in the living-out allowance each year for three years, and a 5% pay increase for artisans, miners and officials over the course of the multiyear agreement.
Outlasted Amcu
Amcu and NUM, which have a combined membership of about 25,000, have not moved on their demands for an increase of R1,000 a month for the lowest-paid employees, and 6% for miners, artisans and officials, which is above the 4.9% inflation rate forecast for 2022. They are also demanding a R100 increase in the living-out allowance, which takes their wage demand to R1,100 each year for three years.
Sibanye-Stillwater CEO Neal Froneman — who outlasted Amcu in a five-month wage dispute in 2019 that led to a loss of about R1.6bn in production and cost employees as much in wages — has said the revised offer was final and took inflation and the sustainability of the mines into account.
The company has urged the unions to accept the revised offer, saying that workers would gain nothing from a strike, which it said would only serve to jeopardise the sustainability of its gold operations and affect all stakeholders, particularly employees.
Sibanye’s gold operations account for about 7% of group profit and employ about 31,000 workers.
Amcu national treasurer Jimmy Gama referred questions to Amcu general secretary Jeff Mphahlele, who could not be reached immediately for comment.
UPDATE: March 23, 2022 — This article has been updated with new information.
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