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Johannesburg - The prolonged platinum mining strikes – which cost companies billions of rands – may also have set a new precedent, with many white collar employees now demanding salary increases, according to Christopher Riley, MD of accessories retailer The Notebook Company.
He said his company had recently experienced a number of wage increase demands from employees.
“This situation is unprecedented in the history of our company – which is more than 20 years old. We have, during this period – which has lasted several months - lost a handful of staff. This is clearly not good for business, but we cannot pander to the whims of our employees," said Riley.
“Just because miners were demanding a basic salary of R12 500 per month it seems as though workers with higher levels of education – and experience - believe they are entitled to higher salaries. But we cannot, willy-nilly, just give in to pressures for unwarranted salary increases."
He said that could be unstainable for his business. However, the reduction in his human resources has impacted negatively in terms of the business' ability to service its client base at a 100% capacity level.
“I believe it is likely that more than a handful of companies are facing this situation – although very few, if any - will want to comment. They will remain tight-lipped,” he said.
"The fallout from the prolonged platinum strike is going to be profound. Going forward, fewer miners will be employed in the medium to long term," according to Sean Jones, co-founder and director of the Artisan Training Institute (ATI).
”The strike has threatened to plunge South Africa into a recession and, although the SA Reserve Bank governor Gill Marcus has stated this is unlikely, there has to be a high level of concern," he said.
“When we look at the mining industry itself – and the miners – if Amcu does manage to get its members a R12 500 minimum wage within the next three years, this will leave many miners on the sidelines, without the hope of employment.”
Jones said this is because mines will employ fewer miners at the higher minimum rate and would aim to mechanise as rapidly as possible – and would shut down marginally profitable mines, using more skilled miners to operate and maintain the new machinery.
"The fallout from the platinum strike is not going to help families who need a roof over their heads and food on the table. More people, rather than fewer, will be going hungry," he said.
