JOHANNESBURG (miningweekly.com) – Alarming statistics reflecting the retrenchment of 35 000 workers in January might only be the “tip of the iceberg”, says labour union Uasa divisional manager Franz Stehring, who warns that protracted strikes by labour in the mining sector may affect the viability of mining companies as long-term going concerns.

According to a report released by workforce management firm Adcorp on Monday, the economy shed 36 290 jobs during the first month of the year, with the mining sector’s January employment numbers coming in 10% lower than that of the prior month.

Stehring, who was responsible for wage bargaining on behalf of Uasa members active in the mining sector, said South Africa’s minerals sector was facing a “no-win situation” as a result of “crippling” wage demands from rival union the Association of Mineworkers and Construction Union (AMCU).

AMCU continued to demand a monthly remuneration of R12 500 a month for members employed in the embattled local platinum sector, which Stehring said made Uasa “fear for the worst”.

“Last year we were involved in prolonged consultations with certain mines to cut costs, improve productivity and implement numerous strategies to prevent these mines from going under. In so doing, we have been able to save the jobs of thousands of workers.

“The current situation, with the continuing strike action by AMCU causing major economic destruction, may well lead to all our efforts being thwarted, with an added possibility that some mines could be forced to finally close down,” he asserted.

Adding that the union did not want to be perceived as a “prophet of doom”, Stehring said labour unions needed to be realistic.

“We are, in the foreseeable future, expecting an announcement by platinum major Anglo American Platinum (Amplats) in respect of downsizing measures in the industry,” he said.

Stehring added that, irrespective of whether or not a settlement between AMCU and the platinum producers could be reached, the “waves” of strike action had caused irreparable harm which might prove “too much” for certain mining operations to [overcome].

“As a consequence, thousands more workers in an already crippled mining sector could become part of our unemployment statistics.

“Uasa believes it is unfair that we are being held to ransom in a system where majority organisations can take away the livelihood of our members,” he noted.

Top platinum producers Amplats, Impala Platinum and Lonmin this week continued to meet with independent mediators to discuss a two-week wage strike by AMCU, whose 80 000 workers in the sector had downed tools on January 23.

Earlier talks led by the Commission for Conciliation, Mediation and Arbitration adjourned last week after the firms said they had reached "no settlement" with negotiators of the radical union.