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Johannesburg - Unions on Thursday threatened strike action in the coal mining sector and against the world’s top platinum producer, moves that may threaten the country’s exports to resource-hungry Asia.
South Africa is also almost exclusively coal-powered, and energy supplies are tight, but utility Eskom has said it has enough coal in stock to last 41 days, so a strike would have to be lengthy to affect its operations.
A spokesperson for the company said it had contingency plans but did not elaborate.
The unions will meet again with the coal mines, but the powerful National Union of Mineworkers (Num) said it was no longer talking with Anglo Platinum [JSE:AMS], the world’s biggest producer of the crucial metal.
“The Num took a decision not to continue with talks with the company ... and to proceed with consultation with members to ask for a mandate to strike action,” the union said in a statement. Amplats declined to comment.
A strike at Amplats could threaten its 2011 production target of 2.6 million ounces and push up platinum prices.
Spot platinum was bid at $1 734.30 an ounce in afternoon trade versus $1 721.60 at the previous close, extending earlier gains. Amplats’ shares edged down 0.08% to R625.49.
Bad blood
Labour relations are badly strained in the mining sector in South Africa, which has by far the world’s largest platinum reserves and is also an important gold producer. That is one reason mining shares here have in general underperformed their global peers.
Num is pushing for an across-the-board wage increase from Amplats of 20% for the first year of what should be a two-year contract, while it said the company offered had offered 4.6 percent.
In the coal-mining sector, the Chamber of Mines said that three unions, including Num which is the largest, have threatened to strike over wages. The Chamber is negotiating on behalf of several coal miners.
NUM is seeking a 14% raise from coal miners, about triple the inflation rate, while the chamber said it had raised its offer to 6% to the lowest paid workers and 5% for the rest.
The mining body and unions said they planned further talks on July 20 with a mediator.
Strikes also loom in the gold mining sector.
The wage demands are far in excess of inflation, which was 4.6% in May, but unions say the data do not capture the full impact of food and fuel price rises on the incomes of poorer workers, who often have several dependents.
The companies say that even with high commodity prices, they cannot afford such hikes as they grapple with other cost pressures.
Economists have warned that rising labour costs are eroding South Africa’s status as an investment destination especially since its workforce is already more expensive and less productive than those found in many of its emerging market rivals.
A strike in the engineering sector started on Monday and another at petroleum and pharmaceutical firms is due to start next week.
South Africa is also almost exclusively coal-powered, and energy supplies are tight, but utility Eskom has said it has enough coal in stock to last 41 days, so a strike would have to be lengthy to affect its operations.
A spokesperson for the company said it had contingency plans but did not elaborate.
The unions will meet again with the coal mines, but the powerful National Union of Mineworkers (Num) said it was no longer talking with Anglo Platinum [JSE:AMS], the world’s biggest producer of the crucial metal.
“The Num took a decision not to continue with talks with the company ... and to proceed with consultation with members to ask for a mandate to strike action,” the union said in a statement. Amplats declined to comment.
A strike at Amplats could threaten its 2011 production target of 2.6 million ounces and push up platinum prices.
Spot platinum was bid at $1 734.30 an ounce in afternoon trade versus $1 721.60 at the previous close, extending earlier gains. Amplats’ shares edged down 0.08% to R625.49.
Bad blood
Labour relations are badly strained in the mining sector in South Africa, which has by far the world’s largest platinum reserves and is also an important gold producer. That is one reason mining shares here have in general underperformed their global peers.
Num is pushing for an across-the-board wage increase from Amplats of 20% for the first year of what should be a two-year contract, while it said the company offered had offered 4.6 percent.
In the coal-mining sector, the Chamber of Mines said that three unions, including Num which is the largest, have threatened to strike over wages. The Chamber is negotiating on behalf of several coal miners.
NUM is seeking a 14% raise from coal miners, about triple the inflation rate, while the chamber said it had raised its offer to 6% to the lowest paid workers and 5% for the rest.
The mining body and unions said they planned further talks on July 20 with a mediator.
Strikes also loom in the gold mining sector.
The wage demands are far in excess of inflation, which was 4.6% in May, but unions say the data do not capture the full impact of food and fuel price rises on the incomes of poorer workers, who often have several dependents.
The companies say that even with high commodity prices, they cannot afford such hikes as they grapple with other cost pressures.
Economists have warned that rising labour costs are eroding South Africa’s status as an investment destination especially since its workforce is already more expensive and less productive than those found in many of its emerging market rivals.
A strike in the engineering sector started on Monday and another at petroleum and pharmaceutical firms is due to start next week.
