The die seems to be cast in South Africa between the government and the labour unions. The President of the Association of Mine Workers and Construction Union, AMCU, Joseph Mathunjwa, has warned that the trade union will shut down Impala Platinum if the company proceeds with plans to axe 13,400 jobs. The union has done it before. However, this time around, AMCU defers to President Cyril Ramaphosa to lead the negotiations that will be needed to avoid another strike in an already crippled economy.
The AMCU warned it would go on strike at Impala Platinum (Implats) and any associated companies if the mining giant retrenches 13,400 workers under its broad two-year restructuring strategy. The union represents over 70% of the unionised workforce in the platinum sector and dominates even further at Implats.
The company announced last week that it would stop operations at five Rustenburg shafts and cut its labour-intensive workforce to reform operations after not making a profit for the last six years amidst rising costs and a weakened platinum price.
The announcement has angered both the unions and the government. The company must now consult employees, unions, the Department of Mineral Resources and the Department of Labour under regulations in the Labour Relations Act.
Civil groups have hinted that the South African President, Cyril Ramaphosa, who is a highly respected labour unionist, is widely expected to personally supervise the negotiations aimed at reaching a compromise in the current quagmire at Implats.
