South Africa's labor unions have achieved modest progress ahead of wage negotiations with gold mining companies that are set to begin June 22. This year's strike season should be more accommodating and less disruptive than the talks that occurred last year in the platinum industry, which were accompanied by a five-month strike. However, with considerable financial and organizational interests at stake and all sides making careful calculations, it will not be an easy wage negotiation session. Some unions are still likely to go on strike at some point during the next two or three months.
The mining sector labor unions involved in upcoming wage negotiations all have differing positions that could complicate the collective bargaining process. But unions have reduced tension by holding preliminary discussions and agreeing on a negotiating framework before the talks officially start.
The National Union of Mineworkers, Solidarity, the United Association of South Africa and, critically, the Association of Construction and Mineworkers Union together met with South Africa's Chamber of Mines on June 9 to reach an agreement on the process of wage negotiations, including where it will take place and between which representatives. In past years, the decision to coordinate negotiations, rather than negotiate separate contracts, has been extremely contested. But in this year's preliminary talks, unions have already agreed to include a chairperson and facilitator who will coordinate between unions to settle on terms.
The inclusion of all the major unions in preliminary discussions will reduce the risk of a two-track negotiation, with the mining companies making one set of agreements with more accommodating unions and another set of terms with non-participatory unions. Negotiating one contract with all the unions will take less time and will be less disruptive to mining production.
South African unions understand the financial situation the mining companies are in. Depressed commodity prices, reduced demand for output and difficult access to capital all explain why the unions are cooperating so far. Unions depend on the success of the mining industry as much as corporations do. But that cooperation does not mean the wage negotiation period will be an easy one. Union leaders will need to adopt a tough stance in negotiations with mining companies to maintain and attract their members.
