Intimidation wracks Impala’s Rustenburg mine

[miningmx.com] – ABOUT 20,000 workers consisting of rock drill
operators (RDOs) and miners failed to turn up for work at Impala Platinum’s
920,000 oz/year Rustenburg mine on Monday, leaving the R110bn JSE-listed company
with its “hands tied”.

“We only have a recognition agreement with the National Union of
Mineworkers [NUM],” said Alice Lourens, spokesperson for Impala in explaining why
the company could not directly engage the union responsible for encouraging the
worker stay-away, the emergent Association of Mineworkers and Construction Union
(AMCU). “Our hands are tied,” she said.

A recognition agreement enables a union to negotiate with management and turns on
having sufficient representation among the workforce.

The economic consequences are potentially serious for Impala Platinum’s 2012/13
financial year as the Rustenburg operation represents roughly half of the group’s
annual production. Impala Platinum has guided for 1.8 million ounces for the current
financial year. Shares in Impala fell 2.75% on the JSE on Monday.

Impala has lost an estimated R210m in revenue as a result of the strike by the
RDOs, now entering its seventh day (on Tuesday). The RDOs went on strike because
Rustenburg’s miners – which are underground workers but so differentiated by Impala
from RDOs – were given an 18% retention increase. The retention increase was an
attempt to stem the high turnover of miners at the operation, apparently touching
close to 20%, NUM said. NUM told Miningmx last week that Impala claimed it
had no more monetary benefits to provide workers following wage increases
negotiated in October.

NUM said support among miners for the stayaway was not widespread and that
intimidation by some 2,000 AMCU members was the root cause.

“Impala has to provide security tomorrow for intimidated workers,” said Lesiba
Seshoka, spokesperson for NUM. “We had a meeting of our branches today and
decided that all those being intimidated must return to work on Tuesday.”

In the meantime, Impala Platinum has been granted a further court interdict declaring
the strike by miners illegal. This follows an interdict last week that found the RDOs
strike illegal and resulted in the dismissal of about 5,000 employees.

Some RDOs subsequently reapplied for their jobs last week, said Lourens. However,
they may have stayed away again today amid heightened tension at the mine, which
only adds more pressure to South Africa’s struggling platinum sector.