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Some 12,000 South African labour force lost their jobs today after the world’s largest platinum producer, Anglo American Platinum Limited (Amplats) – a subsidiary of global mining giant Anglo American plc (LSE:AAL), dismissed workers who did not show up during the disciplinary hearing set up by the company in connection with the strike of its employees at its Rustenburg mines in South Africa.
“Disciplinary hearings for striking Rustenburg mine employees have been completed and affected employees will be informed of the outcome of the hearings today,” Amplats said in a statement issued today, adding that the now jobless miners will have three working days to appeal their cases.
Amplats had earlier stated they have repeatedly appealed to the employees to return working the mines since the company suspended the operation on 12th September, in the heat of the clash between striking members of rival platinum miner, Lonmin plc (LSE:LMI) and authorities.
Attendance at Amplat’s mines in the platinum mining centre, Rustenburg, has been less than a fifth of the company’s total workforce as a number of the company’s miners joined the striking employees of Lonmin.
Wage-Related Industrial Action
South Africa’s mining industry has been rocked by labour unrest from different mining companies in the platinum and gold sector and has recently permeated to the iron ore business when another of Anglo American’s subsidiary, 65.2%-owned Kumba Iron Ore Limited, also confirmed industrial action by some 300 employees.
The core of the industrial action is the campaign for wage increases, with Lonmin strikers getting nearly as much as they protested for in a six-week standoff that ended with 46 people dead, most of whom were Lonmin workers – never to receive the increase in pay.
Impala Platinum Holdings Limited (LSE:IPLA), second largest producer of the jewellery material also used in automobiles to reduce carbon emission, has also entered into a compromise agreement and approved another increase in salary of its miners less than six months after the same was increased following more than a month of work stoppage early this year.
Lost Revenue
The South African Government had earlier revealed a number of investors are taking away their investments in the BRIC member-state since violent industrial action began that cost multi-million pounds of lost revenue.
“Anglo American Platinum confirms that as a result of the illegal industrial action of its employees and the initial safety suspension, total lost platinum production has amounted to 39,000 ounces, resulting in approximately R700 million of lost revenue,” Amplats declared.
The platinum industry is now holding talks to study the likelihood of a centralised collective bargaining agreement similar to the gold sector in the country, according to Chris Griffith, Chief Executive of Amplats and former Executie at Gold Fields, a gold mining company in South Africa also facing strike from its employees.
Contagion
Amplats also disclosed today three of its platinum mines are also experiencing “strike contagion” as “workers have presented memorandums of demands similar to those received in Rustenburg” even as the firm tries to quell the labour action.
Shares of the Anglo American dropped 0.2% to £18.10 at 4:00 PM GMT, a few hours after the dismissal was disclosed.
