News / Economy

South Africa's AMCU Union Digs In on Platinum Strike

Joseph Mathunjwa (R), President of the Association of Mineworkers and Construction Union (AMCU) arrives at a mediation meeting in Johannesburg, Jan. 24, 2014.
Joseph Mathunjwa (R), President of the Association of Mineworkers and Construction Union (AMCU) arrives at a mediation meeting in Johannesburg, Jan. 24, 2014.
Reuters
— South Africa's Association of Mineworkers and Construction Union (AMCU) vowed on Thursday to continue a strike against the world's top three platinum
producers, a move its president described as a "fight for survival" by workers.

AMCU's intention to dig in for the long haul dashes any hope for the stoppage to end soon. The strike, already a month old, has hit over 40 percent of global platinum production and dealt a blow to investor confidence in Africa's largest economy.

"We are prepared to see it through," AMCU President Joseph Mathunjwa told a news briefing.

AMCU members downed tools four weeks ago in a wage dispute at Anglo American Platinum, Impala Platinum and Lonmin.

Asked how long they would strike, Mathunjwa replied, "until we achieve a settlement that is accommodative of our 12,500 rand ($1,100) a month demand".

AMCU's battle cry has been for a more than doubling of the basic entry wage to 12,500 rand a month, which companies have said they cannot afford.

The chief executives of the three companies drew their own line in the sand on Wednesday, saying their latest offer of pay hikes of up to 9 percent was final and pushed the boundaries of what they could bear given depressed prices and rising costs.

Companies say that if bonuses, housing and other allowances are also taken into account, their latest offer would guarantee minimum pay of at least 9,390 rand to entry-level miners.

But Mathunjwa said workers were prepared to stick it out.

"This is not about time, it's about the cause," said Mathunjwa, flanked by about 30 AMCU shop stewards clad in the union's trade-mark green shirts. "Ours is a fight for survival."

World views apart

It is hardly surprising that the two sides remained so polarized as they see the world through radically different lenses and use a different vocabulary.

The companies look at their income statements, cash flows and balance sheets, a point driven home on Wednesday by their chief executives, who spoke of an "affordable, achievable and sustainable resolution" to the strike.

AMCU - if taken at its word - takes the long view of history and sees the showdown as the natural outcome of a long and bloody conflict between capital and labor, and white colonial powers and Africans.

Mathunjwa, in a long and at times rambling monologue, spoke on Thursday of a "cancerous relationship" marked by "profiteering ... through many centuries with significant benefits to the Anglo-Saxon world and the Americans".

The companies talk about the "current weak state of the platinum market".

Mathunjwa evokes "super-exploitative mechanisms" and said on Thursday that "the mining sector for many centuries has been feeding off the sweat and blood of black workers".

In many parts of the world, unions and management take very different stances on issues of equity and economics, especially when negotiating pay and benefits.

But in few places are the differences so stark and the stakes so high, as AMCU has emerged as the top union on South Africa's platinum belt - a trillion-dollar resource by some estimates - after poaching tens of thousands of members from the once-unrivalled National Union of Mineworkers.

Mathunjwa also said when it comes to executive pay, "captains of industry don't complain as it benefits capital.

When it is workers who are demanding a genuine living wage, we are told that this is unaffordable and will affect investor confidence in the country".

There was a moment of levity when Mathunjwa, a Salvation Army lay preacher, suggested the companies were "demonically possessed" and would require a "laying of hands" to drive out the demons.

Earlier, the shop stewards had danced and sung praise songs - a tradition in some African cultures - to Mathunjwa, another marked difference from the staid press conference given by the executives on Wednesday.

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