RAPAPORT... A workers strike at Modikwa platinum mine in South Africa remains in force despite ongoing negotiations between the mine management and the National Union of Mineworkers.
Some 3,000 workers are refusing to return to work, protesting racial discrimination in treatment, salary, and benefits of workers. According to mine partner, African Rainbow Minerals (ARM,) the strike has already resulted in the loss of 25,000 tons of ore worth approximately $2.7 million (R20 million.)
"There's no resolution. We're no closer to an agreement," said National Union of Mineworkers (NUM) spokesperson Onis Serothwane after a meeting between the NUM and management on January 29. The parties remain divided over the wage gap between black and white miners, transport subsidies, and the expectation that employees work additional shifts on their days off.
"On the wage gap it's chaos because the company is not using the AngloPlat wage structure, they are using something completely different," added Serothwane.
The mine is jointly owned by African Rainbow Minerals (ARM,) with 41.5 percent of Modikwa and Anglo Platinum, the world`s biggest platinum producer.
Mine union officials claim that approximately 3,000 members of the National Union of NUM out of a total workforce of 5,000 have not come to work at the mine in the northeastern Limpopo province since the strike started on January 26. A spokesman for ARM however said that output was continuing with the help of contract workers who were still on the job.
"The plant that mills the ore and produces the concentrate is still running at a normal pace at this stage and we`ve re-deployed people so the mining can continue at a slower pace," ARM spokesman Pieter Rorich told Reuters.
The NUM said racism in the workplace prevented the mine management from paying black employees equal salaries as their white colleagues. A meeting between the union and the employer deadlocked on Saturday, January 27.
Head of Strategy at Modikwa Platinum Francis Petersen said Saturday’s meeting dealt with some of the union’s demands and that the sides would continue negotiations on outstanding issues.
According to ARM’s year end results, Modikwa produced 293,313 oz of platinum group metals in concentrate during the financial year to end-June 2006.
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