Amcu loses bid to strike at gold mines

Published Jun 24, 2014

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The Labour Court yesterday dismissed the bid by the Association of Mineworkers and Construction Union (Amcu) to strike at operations owned by three of South Africa’s major gold mines.

The judgment is expected to bring stability in the gold sector, which is struggling with low margins and is unlikely to be able to afford a protracted strike such as the one seen in the platinum sector.

But Solidarity, one of the majority unions in the sector, accused Amcu of leaving “its members in the lurch”.

In his judgment, Judge Andre van Niekerk ruled that the court’s interim order issued in January to prevent Amcu from striking be made permanent.

This means a strike by the union would be unprotected and employers would be entitled to dismiss employees for contravening the judgment.

The judge was not convinced by Amcu’s argument that it was unconstitutional for the Chamber of Mines to include the union in the two-year wage agreement signed by majority unions but not Amcu.

Amcu was preparing to strike at mines where it has majority representation: AngloGold Ashanti’s Mponeng, Savuka and Tautona mines, at Sibanye Gold’s Driefontein mine, and at Harmony Gold’s Kusasalethu operation.

The Chamber of Mines approached the court to declare a strike by Amcu unprotected after September’s signing of a two-year wage agreement with majority unions the National Union of Mineworkers, Solidarity and trade union Uasa.

Amcu, which represents 19 percent of employees in the gold sector, rejected the agreement and demanded a wage of R12 500 for entry-level underground employees.

“We are relieved and we welcome the judgment. At the same time we invite Amcu to come on board for the implementation of the agreement,” said Elize Strydom, the Chamber of Mines’ chief negotiator, on the sidelines of the hearing.

“This judgment means a lot for the industry. No ways can we afford the R12 500. We also agreed to establish task teams that will look at employee indebtedness,” Strydom said.

The Chamber of Mines negotiates on behalf of the gold producers in a central bargaining system – unlike in the platinum sector, where companies negotiate individually with the unions.

Amcu’s legal representative Larry Dave was disappointed at the outcome. “We will study the judgment, and consider our options,” Dave said.

Solidarity general secretary Gideon du Plessis said the verdict handed down in the Labour Court confirmed that Amcu did not have a right to strike in the gold sector.

“Amcu was part of the 2013 gold sector negotiations but hardly ever participated in the negotiations. Only after the agreement entered into by Solidarity, the National Union of Mineworkers and Uasa with the Chamber of Mines was extended to Amcu did Amcu suddenly indicate that they wanted to go on strike,” Du Plessis said.

“Solidarity believes that this verdict indicates that Amcu left its members in the lurch by not negotiating in good faith. We now appeal to Amcu to abide by this ruling.”

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