While there seems to be no end in sight to the protracted strike action at Sibanye-Stillwater’s gold operations, the leading global miner has warned that should industrial action continue until the end of April, striking employees would have lost all value they could have gained from a wage increase.
The Association of Mineworkers and Construction Union (Amcu), and the National Union of Mineworkers (NUM), which jointly represent about 25,000 of the 31,000 employees at Sibanye’s gold operations, downed tools on March 9 in support of their demand for above-inflation wage increases.
Striking employees who have been locked out since March 10 have lost about R790m in wages, while the government has lost about R90m in PAYE, income tax and salary-related levies.
Amcu national treasurer Jimmy Gama told Business Day on Tuesday that the industrial action was showing no signs of abetting.
“We are still moving ahead with the strike,” Gama said. “There is no agreement between parties yet, so the strike continues.”
The two unions announced in a statement last week that they planned to give the miner notice to allow their members in the group’s platinum operations to join their striking counterparts as a means to intensify their wage strike.
“That is still part of the plan,” said Gama. However, Sibanye has said it had not yet received notification of any “secondary strike” at its platinum group metal operations and “will take appropriate legal action in the event that this is given”.
A secondary strike, or sympathy strike, is described in the Labour Relations Act as conduct by employees employed by the same employer aimed at exerting pressure to accede to the primary striking workers’ demands.
Sibanye’s executive vice-president for SA gold operations, Richard Cox, said last week that should the strike continue until the end of April, “striking employees would have lost all value they could have gained from a wage increase”.
“The offer made to the unions and subsequently accepted by Uasa [United Association of SA] and Solidarity in February 2022 is fair and considers inflationary living costs. Our offer of a R700 per month increase in basic annual wages each year for a period of three years amounts to a 6.8% increase in year one, 6.4% in year two and 6% in year three for category 4 [surface and underground] employees, and will add R1.5bn to the wage bill at the SA gold operations,” Cox said in a statement.
The SA Reserve Bank has forecast a headline inflation rate of 5.8% for 2022. “Amcu and NUM’s R1,000 demand amounts to a 9.8% increase in year one, 8.8% in year two and 8.2% in year three for category 4 employees, which is well above inflation and will add R2.5bn to our wage bill,” said Cox. As part of the pay hike deal accepted by Uasa and Solidarity, artisans, miners and officials received a 5% wage increase.
NUM spokesperson Livhuwani Mammburu said: “The strike continues as usual, workers are at the picketing areas which were identified by unions, the company and the Commission for Conciliation, Mediation and Arbitration.
“Our members are on the ground, they are steadfast, they want a R1,000 wage increase for lowest-paid workers and a 6% increase for artisans, miners and officials.”
The protracted strike at Sibanye’s gold operations could deprive the mining giant of an opportunity to take advantage of the global commodity price boom, which has seen the gold price jumping from a low of $1,782/oz at the beginning of 2022 to $2,070, the highest since August 2020.
However, Sibanye has said it is “premature to attribute accurate numbers to production losses”. The company has published production guidance of between 813,000oz and 873,000oz for 2022. It could lose at least 135,500oz if the industrial action continues for two months.
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