When the world’s biggest platinum miners sit down with labour unions in May to negotiate a three-year wage deal, it could prove an early test of Cyril Ramaphosa’s new presidency.
A strike on a similar scale could cut platinum output by as much as 40,000 to 45,000 ounces per week, according to Johnson Matthey, a key maker of catalytic converters for the auto industry. The company is predicting a platinum market deficit this year, even assuming no widespread strikes. However, some fear Amcu is gearing up for industrial action after SA’s regulator threatened to deregister the union for failing to hold a regular congress and leadership elections. That could potentially impair the union’s ability to negotiate with mining companies and collect dues from its members.
Amcu leader Joseph Mathunjwa, who has long been critical of the governing ANC, said there is a political agenda behind moves to deregister the union. When asked in April, he declined to say who he thought was behind the move, but asked: “Who are the richest black people in South Africa?”
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Industry experts warn on disruption of SA’s platinum industryAnalysts Johnson Matthey warn of potential production risks stemming from strikes and disruptions of power supply to mines by Eskom
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