BUSINESS MAVERICK: Amcu’s Joseph Mathunjwa knows when to take on capital

president Joseph Mathunjwa does not understand the worlds of business and economics. But he knows when business is vulnerable and when it is not.Amcu, which now claims 250,000 members according to its website, has matured and mellowed since its explosive rise in the platinum sector.

Palladium prices were going through the roof and the pivot to mechanisation for the likes of Anglo American Platinum was literally paying dividends. Profits were surging and balance sheets were relatively robust. In such a setting, Amcu could have pressed for huge wage hikes of 60% or 100% or more. This had been its default position for demands in the past. But it held off.

Now, thanks to the Covid-19 pandemic, the mining industry is on shakier ground. Palladium prices, while historically still high, are down almost a third from the peaks obtained in late February 2020 of over $2,800 an ounce. And the issue – health and safety – is one that probably has wide support among its members and the wider public. This would include investors. Environmental, social and governance issues – so-called ESGs – have gained growing prominence in recent years. They are high on the radar screens of investors, which in turn means they have the attention of boardrooms. This is the soft underbelly of capitalism and that is precisely where Amcu struck.

Indeed, to its credit, the mining industry has made huge strides on health and safety fronts in recent years, so the two sides were probably not that far apart on this issue. The industry must consult with all stakeholders including Amcu’s medical experts as the final guidelines are worked out.

I think he is being advised by hired gun spoor as to strategy

Really🤔

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