Escalating South African Labor Disputes Reflect Deeper Pressures

South Africa's five-month platinum miners' strike came to an end June 25 following a June 23 wage agreement between the Association of Mineworkers and Construction Union and mining companies. The mining shutdown, however, still slowed the South African economy in the first half of the year. In spite of a resolution with the Association of Mineworkers and Construction Union, another strike led by the larger National Union of Metalworkers of South Africa looms July 1. In both labor disputes, the workers expect consistent wage increases and the companies are limited by rising non-labor costs.

While South Africa's platinum sector stands out at the moment, similar constraints can be found throughout the industrial and mining sectors. The tension in this broad range of sectors will continue to put pressure on the country's economy and on the political balance in Pretoria.