Strike claims first jobs

Sep 17 2012 18:24

Company Data

Lonmin plc [JSE:LON]

Last traded 14
Change 0
% Change -2
Cumulative volume 133782
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 346
Change 1
% Change 0
Cumulative volume 396233
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Marikana - As South Africa's bloody and bitter mining strike dragged on for a fifth week, Lonmin [JSE:LON] announced on Monday it is halting construction of a new shaft, putting 1 200 people out of work.

The strikes that have stopped work at seven gold and platinum mines have spread to the chrome sector, according to Sapa.

Meanwhile, police blocked rabble-rousing politician Julius Malema from addressing about 3 000 strikers gathered at a stadium at the Lonmin mine at Marikana, north-west of Johannesburg.

"Arrest him!" one officer ordered, giving Malema 20 minutes to leave or face arrest. This caused Malema to take off with his entourage.

"I'm leaving. We're getting out of here. Why are you chasing me? Are you going to shoot me?" Malema taunted.

Police on 16 August shot 112 striking Lonmin miners, killing 34, in the worst state violence seen in South Africa since apartheid ended in 1994.

Malema sprinted to his all-terrain vehicle and sped off. Police piled into two armoured cars and two other police vehicles and followed Malema at high speed on muddy dirt tracks that wind their way through the tin-shack ghetto with no water or electricity that is home to thousands of Lonmin's miners.

The police vehicles and a helicopter hovering above the politician's car literally drove Malema out of town, making sure that he got onto a two-lane highway without speaking to any crowds. Police did not say on what grounds they blocked Malema or threatened him with arrest.

Malema, who was expelled from the ruling African National Congress in April for "sowing disunity", has called for a nationwide mining strike, feeding on the anger of miners to boost his campaign to oust President Jacob Zuma as leader of the ANC.

Armed soldiers for the first time joined police in armoured cars standing guard at Lonmin earlier on Monday. A truck-mounted water cannon stood by as a helicopter flew overhead.

Church and opposition leaders condemned the state security for its heavy-handed action against the strikers, saying it mirrors the force used years ago by the white minority apartheid regime.

The opposition Congress of the People party demanded the withdrawal of some 1 000 soldiers trucked over the weekend into the "platinum belt" 100 kilometres north-west of Johannesburg.

In Johannesburg, President Jacob Zuma called for a speedy resolution to the mining strikes. He said the strikes have cost South Africa close to R4.5bn rand in lost gold and platinum production this year.

Zuma told a conference of the Congress of South African Trade Unions that this year's work stoppages have subtracted nearly R3.1bn rand from the national treasury.

He blamed poor living and working conditions of miners on the apartheid past and the failures of mining companies to honour a charter to improve the lives of miners.

Zuma said mining companies are required to improve the housing and living conditions of workers and also to invest in skills development, racial equity in employment and ownership as well as local community development. He said violence cannot become a culture of South African labour relations.

Union rivalries and demands for better pay have stopped work at one gold and seven platinum mines. Aquarius Platinum said work resumed at its mine on Monday, and Anglo Platinum [JSE:AMS] said it would restart operations on Tuesday at its four mines under police security.

A strike leader said some miners at Samancor Chrome stopped work on Friday demanding a minimum take-home pay of R12 500, according to Sapa.

It is unclear how many miners are on strike in the different stoppages. Mining companies claim it is a minority with tens of thousands of workers not reporting for duty because of violent threats and intimidation. Previous marches by strikers brandishing machetes, spears and clubs have numbered several thousand.

Lonmin said negotiations would continue on Monday after strikers last week rejected an offer of 16 to 21% pay increases that fell far short of the demands of striking rock drill operators for a minimum monthly take-home pay of R12 500.

The chief economist of the Chamber of Mines, Roger Baxter, on Monday told Talk Radio 702 that the average rock drill operator earns an average monthly total before deductions of R11 689 which he said put those workers in the top 20% of all earners in South Africa.

For comparison, Baxter noted that semi-skilled steel and industry workers earn a monthly total of R4 000 to R5 000. Deductions often account for half a workers' salary.

On Saturday, police fired rubber bullets and tear gas at a shanty-town neighbouring Lonmin mine, where officers killed 34 miners on 16 August in attacks that shocked the nation of 48 million. The weekend crackdown was condemned by the head of the South African Council of Churches.

"Government must be crazy believing that what to me resembles an apartheid-era crackdown can succeed," said Anglican Bishop Jo Seoka, the council president.

"We must not forget that such crackdowns in the past led to more resistance and government can ill afford to be seen as the enemy of the people that put them in power."

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