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Collective bargaining needs to be reinforced post strike, avers Trade and Industry Minister

4th July 2014

By: Kim Cloete

Creamer Media Correspondent

  

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Trade and Industry Minister Dr Rob Davies is expecting an upswing in South Africa’s economy now that the five-month strike by members of the Association of Mineworkers and Construction Union in the platinum mining sector has ended.

He told journalists in Cape Town last week that, while the strike had been undoubtedly bad for the economy, including leading to a ratings downgrade, government and mining companies needed to work on moving the country forward.

“A long strike is not good for the economy, but we’ve ended it now, so we’re looking up.”

The rand has plunged as the strike has dragged on and South Africa’s growth forecast has been revised downwards. But with news of the end of the strike, the rand firmed by nearly 1% against the dollar moving to a two-week high.

Davies said a big focus would be to rebuild the credibility of the bargaining system.

“We hope that the experience in the platinum sector will lead to the strengthening of collective bargaining in the mining industry.”

But, he said, mining companies needed to go far beyond the wage settlement.

“We need to bring much more transformation in the sector, such as in housing and in moving away [from] the migrant system.”

Questioned on whether workers in other industries would be temped to go on a long strike if there was a chance of getting a fairly good deal, he said he doubted it.

“The workers lost a lot by prolonging the strike.”

More than 70 000 miners involved in the strike, which started on January 23, lost a combined R10.6-billion in wages, with the strike costing the three companies involved – Lonmin, Impala Platinum and Anglo American Platinum – R24-billion in lost revenue.

Davies, who was replying to questions on the sidelines of a briefing on renewable energy, said government was looking at beneficiation to add value to the platinum industry.

A feasibility study was being conducted, with the hope that the platinum industry could be extended to local beneficiation in jewellery, catalytic converters for cars and fuel cell technology.

He said government was looking at World Trade Organisation rules and local strategies around beneficiation.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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