Trouble looms after unions opt to strike at money-spinner Sibanye

Industrial action is looming in the gold sector after mineworkers affiliated to a coalition of disgruntled unions elected to go on strike over their demands for above-inflation increases at gold miner Sibanye-Stillwater.

The workers — belonging to the National Union of Mineworkers, Uasa and the Association of Mineworkers and Construction Union — elected to down tools during a mass meeting held at Carletonville outside Johannesburg on Sunday.

That followed a rejection of Sibanye-Stillwater’s recently revised wage offer of R800 each year for three years, with the unions sticking to their demand for a R1,000 increase each year of the multiyear agreement.

The strike could cripple operations at one of the biggest corporate taxpayers, add more than R2.5bn to its wage bill by July 2023 and potentially force the closure of shafts, Sibanye has said.

Surging profits 

If it happens, the industrial action would also underline workers’ determination to receive a greater share of surging profits from Sibanye, whose more than twofold jump in half-year earnings helped it reward shareholders with bumper dividends.

Sibanye spokesperson James Wellsted said: “We are aware of the [Sunday] meeting and the unions have requested a meeting with management, which we are trying to schedule. We will be able to comment once the meeting has been held.”

When contacted for comment, Riaan Visser, Solidarity deputy general secretary for mining, said: “We are still waiting for a mandate from our members. The company requested a meeting with organised labour; it’s been scheduled for Wednesday. We couldn’t meet today [Monday] due to short notice.”

Asked if Solidarity would join the three other unions in embarking on industrial action, Visser said: “We will see what happens after that meeting on Wednesday.”

The workers are set to down tools despite Sibanye having come close to meeting the unions’ demands during a meeting on February 4, where it revised its offer of increases of R570-R670 for the lowest-paid employees to R800 for each of the three years.

According to the now rejected revised proposal, miners, artisans and officials would have received increases of 5% for each of the three years. The Reserve Bank forecasts inflation will average 4.9% in 2022, 4.5% in 2023 and 4.5% in 2024.

The meeting on February 4 came after the Commission for Conciliation, Mediation and Arbitration (CCMA) issued a certificate of nonresolution to the unions recently, paving the way for workers to embark on a strike in support of their demands for above-inflation wage increases.

The unions approached the CCMA in November 2021 to apply for a strike certificate after wage talks between the parties deadlocked. That was after they rejected a revised proposal by Sibanye-Stillwater, made on November 18.

mkentanel@businesslive.co.za