S Africa Union Says Strike at Lonmin Possible

By Devon Maylie

JOHANNESBURG--Members of the Association of Mineworkers and Construction Union voted this week to go on strike at platinum producer Lonmin Plc (LNMIY), but union bosses said Thursday they are trying to stave off more unrest.

"Workers voted for a strike but we asked them for more time to try and meet management," AMCU president Joseph Mathunjwa said. "We want to avoid a strike."

AMCU members are frustrated with the union recognition process at Lonmin's mine. The once dominant National Union of Mineworkers lost its majority at the mine to AMCU, which now has 70% of unionized members, following a violent strike last August when police killed 34 protesters. Disputes over what happens now that AMCU is the dominant union have caused renewed unrest at the mine.

In the past month there has been a resurgence of wildcat strikes and mine violence. Union leaders for both AMCU and the NUM have been shot and killed in recent weeks. Unprotected strikes also hit Impala Platinum Holdings Ltd. (IMPUY) earlier Tuesday and workers at three chrome mines run by Glencore Xstrata (GLNCY) remain on strike since last week.

The unrest has contributed to government concern around sluggish economic growth and a weakening rand, which has hit fresh four year lows amid the recent labor disruptions. The labor minister this week said the country could consider a peacekeeping force to the mines to maintain stability.

"We are trying to avert this strike...we don't want AMCU blamed for the economic situation of the country," Mr. Mathunjwa said.

Even if AMCU is able to convince its members to avoid another strike now, the mining sector as a whole faces the possibility of more industrial action as gold and coal producers begin negotiations for a new two-year wage agreement this month. Wage talks are normally accompanied by strikes as part of the negotiating process to demand higher wage increases.

Write to Devon Maylie at [e-mail]

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