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The three biggest platinum companies reported turnout of as much as 90 percent of their workers after an agreement ended South Africa’s longest mining strike.
Anglo American Platinum Ltd, the world’s largest producer of the metal, had the highest attendance, Charmane Russell, a spokeswoman for the three producers at Russell & Associates, said by e-mail. Impala Platinum Holdings Ltd reported 83 percent and Lonmin Plc 85 percent, she said.
The Association of Mineworkers and Construction Union completed three-year deals with the companies on Wednesday in Johannesburg. The walkout by at least 70 000 miners cost the companies R23,9 billion in revenue and workers R10,6 billion in wages since January 23, according to the producers. Workers started to report for duty yesterday.
Some employees won’t come back, JPMorgan Cazenove analysts Steve Shepherd and Allan Cooke wrote in a May 13 note to clients. At each of the companies, it is assumed that “6 percent of the striking workforce will not return to work,” they said.
Platinum mine workers started reporting for duty on Wednesday, and the first day at work passed without reports of major incidents.
The return of thousands of mine workers was peaceful, with a jubilant mood prevailing among workers and in townships were economic activity had largely ground to a halt since January.
The Association of Mineworkers and Construction Union and producers Lonmin, Anglo American Platinum and Impala Platinum signed a three-year wage deal on Tuesday giving employees an increase of up to 20 percent on basic pay.
The strike cost a combined R35 billion in lost wages and revenue.
Spokeswoman for the three producers Charmane Russell said on Wednesday information on the number of returning employees may be made
public later, but after the morning shift, “our understanding though is that there is a massive turnout”.
Amplats spokeswoman Mpumi Sithole said in an e-mail: “Our primary focus today is to welcome our employees back, ensure that they receive a briefing so that we can commence with a programme which addresses health and safety protocols and refresher training on general mine operations. Our employees are returning back today and we have seen a huge number.”
Workers gathered as early as 5am to clock in, but returning workers underground will take at least two weeks as health tests, basic induction and underground safety checks are involved.
Lonmin had set up huge canvas tents in a nearby stadium where employees underwent medical and other checks.
“Being without income was difficult for everyone, everything stood still. This bit of an increase will definitely motivate us to work harder,” said an employee at an Amplats mine. “We also deserve our share in the wealth of this country.”
A Somali shopkeeper said he was relieved that the strike was over, saying he was “lucky to even make a sale of few basics a day since the end of February”.
Amcu leader Joseph Mathunjwa said this week it had been agreed that the firms would provide a two-week “debt holiday” for those owing their employers money, while assurances had been given of assistance with transport.
Amcu had committed to providing stability and productivity for the sector, and was looking to rebuild relationships between the labour force and producers.
Ramping up production is likely to take three to six months, while producers are likely to begin recalculating the viability of some shafts.
The producers are widely expected to start restructuring in the medium term. – Bloomberg/AFP/Bdlive/Reuters.
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