Anglo American
Platinum’s Marikana
Johannesburg, South Africa — 17 May 2013 – Some miners at Anglo American Platinum Ltd. (AMS) plan to strike should the world’s biggest producer of the metal not drop by tomorrow a proposal to cut as many as 6,000 jobs. The shares fell to the lowest since August 2005.

“Workers will declare a strike at that time,” Gaddafi Mdoda, a spokesman for the workers’ committee and a member of the Association of Mineworkers and Construction Union
(AMCU), said by phone. The start of a potential walkout hasn’t been determined and  discussions are ongoing, he added, according to Bloomberg News.

Last week Amplats reduced job-cut proposals at its South African operations to 6,000 from as many as 14,000 announced in January to help return to profit. Producers are struggling with higher costs as strikes led to above-inflation wage gains as demand wanes.

The company, where the AMCU is the biggest representative of workers at 41%, will take the revised plan to unions, CEO Chris Griffith said.
The company hasn’t received any demands or a notice to strike, said Amplats spokeswoman Mpumi Sithole by phone today. “We encourage workers to address concerns through management,” she added. “We are advising against illegal work stoppages.”

The National Union of Mineworkers said an Amplats workers’ committee had asked it to support a wildcat strike at the company. The committees at the Johannesburg-based producer and other mining companies consist of both union members and staff who aren’t affiliated to labour groups.

“They have asked us to join, but we can’t do something like that,” NUM spokesman Lesiba Seshoka said. Workers in South Africa may strike legally, with their jobs protected, if an independent mediator agrees to a stoppage and after talks between unions and companies fail.

A wildcat strike at  Lonmin plc’s Marikana mine in Rustenburg, 120km north-west of Johannesburg, ended as workers reported for yesterday’s night shift, the company said today.

Amplats shares declined for a fifth day, losing 4.2% to R286 in Johannesburg. It is the lowest closing level since August 2005.

Amplats’ plan would reduce output by as many as 350,000 ounces annually, starting with 250,000 ounces this year. The producer had 56,379 employees by the end of December, according to its annual report.

Source: Bloomberg News. For more information, click here.