JOHANNESBURG (miningweekly.com) – Deputy President Kgalema Motlanthe on Wednesday averred that an “intrinsic contradiction in the scenario of labour and capital” existed, but maintained that the paradoxical objectives of each party could be reconciled in a way that was beneficial to all stakeholders.

Addressing the yearly National Economic Development and Labour Council’s Organised Labour Conference, in Pretoria, Motlanthe asserted that labour and business sought to enter into mutually beneficial relations not because they had forsaken their partisan interests but because they “needed” each other.

“At the end of the day, the country's people need decent, sustainable jobs, just as business needs to increase profits to survive.

“Industrial action has to take place conscious of this broader understanding. If, however, intransigence wins the day, such that both labour and employers dig in their heels yearly, relations can only go from bad to worse, much to the disadvantage of everybody else,” he cautioned.

The Deputy President’s comments came a day before the Association of Mineworkers and Construction Union (AMCU) intended to lead an 80 000-strong strike in the platinum sector, in pursuit of what the CEOs of majors Anglo American Platinum, Impala Platinum and Lonmin Platinum described as “unrealistic and unaffordable” wage demands.

Motlanthe acknowledged the detrimental effect continued labour unrest would likely have on the economy, adding that volatile labour conditions could, in turn, affect “many other facets of our nation”.

“Current government efforts to engage with all stakeholders to heighten awareness about the volatile state of our economy, in light of the urgency of the issues emanating from the mining sector, should be understood in this context.

“All stakeholders should continue to engage actively with local and foreign investors in a structured and coordinated manner to ensure that South Africa remains an attractive investment destination,” he appealed, adding that this should be undertaken within the guiding principles of the Framework Agreement for a Sustainable Mining Industry.

In terms of the framework agreement, government, organised labour and business made a firm commitment to work together to restore peace and stability in the mines.

AMCU, however, has refused to sign the agreement.

Motlanthe further elucidated on the mining industry’s contribution to the country and economy, citing its key role in national economic development, as well as expounding that the sector accounted for roughly one-third of the market capitalisation of the JSE.

Describing it as a “critical” earner of foreign exchange, which constituted up to 40% of South Africa's export basket, he further noted the sector’s strong linkages to the manufacturing and services sectors.

Mines employed around 2.9% of South Africa's economically active population, which translated to more than 500 000 direct jobs.

Government was, therefore, “determined” to do everything possible to strengthen this sector in these difficult global economic conditions, Motlanthe maintained.

“In view of the negative global and national economic conditions, it is important that challenges affecting national interests are dealt with through broad consultation with the aim of building consensus as the basis for socioeconomic stability,” he said.

He further emphasised the importance of social dialogue as a means of resolving industrial conflict, saying that this form of communication “opens up space for all key players to make a contribution, bringing on board their unique insights, even as it recognises existing mechanisms for resolving disputes”.

“With this in mind, I remain confident that organised labour, organised business and government will continue to valorise social dialogue,” he held.