ASSESSMENTS

South Africa: Labor Disputes in the Gold and Platinum Sectors

Jul 12, 2013 | 10:01 GMT

Striking Lonmin mine workers  May 15 in Marikana, South Africa
Striking Lonmin mine workers May 15 in Marikana, South Africa

(STRINGER/AFP/Getty Images)

Summary

A confrontation in South Africa's platinum sector between two important unions, the National Union of Mineworkers and the more militant Association of Mineworkers and Construction Union, has led to disturbances in the form of strikes and legal procedures, disrupting wage negotiations at several mining companies. By contrast, the dominance of the National Union of Mineworkers in gold mining — it represents 65 percent of miners versus the Association of Mineworkers and Construction Union's 17 percent — means the gold sector is not likely to experience similar disruptions. The Association of Mineworkers and Construction Union, however, will continue its efforts to increase its membership in the gold sector.

While the platinum mining industry is hobbled by interunion rivalries, wage negotiations in the country's gold sector are proceeding....

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