(Published in Mining, official magazine of the Chamber of Mines - September 2012)
By Stef Terblanche
Not
since the mineworkers’ strike and rebellion of 1922 has South Africa witnessed
the kind of violence, upheaval and turmoil seen at its mines this year, and
more particularly on the platinum belt. Between August and September alone these
developments already cost the lives of at least 46 people, with around 300 more
injured. A large number of people are facing criminal trials, while the army was
deployed – as in 1922 - to help police restore peace and order.
Since the beginning of this year production
losses in the mining industry due to stoppages and disruptions have run into
billions of rands. Thousands of mineworkers’ jobs may also be on the line. The
already hard-pressed platinum mining industry has been dealt a further severe
blow by the labour unrest that quickly spread to other mines and sectors.
The platinum sector already experienced
serious pressures as investors held back because of a saturated global market
and the persistent European recession. Now, on top of that, the labour unrest
caused investor sentiments to take a further negative dive. At the same time rating
agencies also took a dim view of events.
Almost
91 years ago, on 28 December 1921, workers on the Witwatersrand gold mines went
on strike after the mining companies tried to lower the wages of their white
labour force to compensate for losses suffered due to a falling gold price. In
addition, the mining companies tried to do away with much of the colour bar on
the mines and replace white workers with lower-paid black labour. To a large extent
that and subsequent developments entrenched the colour bar and resultant race-based
socio-economic conditions, job reservation, and racially differentiated pay
scales in the industry for many decades.
Some
argue that despite the mining industry having been transformed significantly
since 1994, the lingering side-effects of that discriminatory era in the
industry continue to be present to this day and may even have contributed to
the underlying causes of the tragic events that unfolded at Lonmin’s Marikana
mine in August.
Be
that as it may, political activists in 1922 – not unlike some of their latter
day counterparts – were quick to exploit the already violent strike and
instigated further uprisings, turning it into a rebellion. Prime Minister Jan
Smuts brought in the army and even tanks, artillery and bomber planes to crush
the rebellion after the mineworkers besieged several suburbs and towns around
Johannesburg and turned to violence. Over 200 people died with scores more
being injured.
A
political backlash followed and Smuts was ousted in the 1924 general election.
The new government adopted legislation that would entrench racial
discrimination in the industry for many decades and protect the jobs of the white
strikers.
Thankfully
things did not go quite as far this time round, but the loss of life, the destruction
of property, injuries and other losses have been bad enough. This time the strikers
and their supporters also carried weapons and turned violent, while they
barricaded the streets and entrances to residential settlements in the vicinity
of affected mines and fought running battles with police. The strikes have been illegal across the
board, with intimidation and lawlessness
being the order of the day.
In
late August the strikers and others who had joined them killed 11 people –
policemen, security guards, and a National Union of Mineworkers (NUM) shop
steward among them. The situation at Marikana became increasingly threatening
and out of control, and on August 16 police opened fire on the Lonmin strikers
killing 34 of them. Most of the striking workers belonged to the Association of
Mineworkers and Construction Union (AMCU) which was recruiting members on the
mines in competition with the NUM.
President
Jacob Zuma announced the establishment of a commission of enquiry to be led by
retired Judge Ian Farlam and sent an inter-ministerial committee led by
Minister in the Presidency Collins Chabane to the scene. According to the
justice department the commission will cost taxpayers an estimated R68-million to
R74-million.
Commenting
on the unfolding events at the time, Chamber of Mines chief executive Bheki
Sibiya said “illegal strikes are lawlessness. Mines are not in the business of
dealing in lawlessness. The law enforcement authorities should play a greater
role to prevent the lawlessness, while it is the government’s responsibility to
engage community leaders and bring this lawlessness to an end.”
Since
then the government did announce a security crackdown and deployed police in
greater numbers with some 1,000 soldiers brought out to support them.
Government also engaged with the affected mines, unions and strikers. But the
damage had already been done.
Sibiya also said that these developments were distracting the mining
industry from its responsibility to run mines efficiently, supply products to
the market, make a profit, create and sustain jobs, and carrying out its
transformation mandate.
He
pointed out that the events at Lonmin’s Marikana mine and those that were
taking place at other mines went beyond industrial action. Sibiya said that,
for instance, out of the 293 people who were injured during the strike in
Marikana, 133 of them were found to be unemployed people who had nothing to do
with Lonmim.
In
1922 it was leaders of the Labour and Communist Parties that instigated the
strikers to extend their strike and confront the mining companies and
government in a rebellion. This time round it was the expelled former ANC Youth
League (ANCYL) president Julius Malema and some colleagues who went from mine
to mine inciting workers to continue their illegal strikes until their demands
were met. Sibiya, like the government and many others, took a dim view of this,
labelling Malema “an opportunist” who was exploiting the situation to serve his
own personal agenda.
"The
industry has to meet the targets of the mining charter in 2014 and it certainly
will not help us get there when people behave like Malema," said Sibiya.
The
Lonmin workers’ wage increase of
between 10% and 22% eventually agreed to was met by conflicting opinions
about its implications among various role-players in the industry. While
business and government welcomed the settlement – as it put an end to the
unrest at Lonmin’s Marikana mine – the ANC, Cosatu and others warned against
its consequences.
NUM
president Senzeni Zokwana cautioned that the Marikana deal will put the future
of formal negotiation structures under "threat" in that workers may
believe they can achieve similar results outside these structures, or that workers
at other mines may also demand similar settlements. Among others, leaders like
Zokwana, Cosatu general secretary Zwelizima Vavi and ANC secretary-general
Gwede Mantashe shared this concern.
Indeed,
the ink on the Lonmin deal had hardly dried when unprotected strikes spread to other mines
with workers demanding similar increases. But companies like Gold Fields, whose
workers were striking at its KDC west operations, near Carletonville, said they
would and could not negotiate
individually because gold mining companies, unlike platinum mines, negotiate
in a collective bargaining forum. Furthermore, the gold mining sector is midway
through a two-year wage agreement.
Following
the recent events, it seems the platinum mining industry may now also seek to
secure a collective bargaining arrangement for the future.
The
causes and consequences of the Marikana strike are many and complicated and it
is best left to the Farlam commission to determine these. Already many possible
causes and consequences have been raised with different parties holding
contradictory views on claims around, for instance, the living conditions of
workers, the level of remuneration received by workers, and more.
However,
one possible contributing factor may have been the current labour legislation.
In the wake of the Marikana tragedy, labour relations experts and non-Cosatu
union officials were calling for a review of labour laws to prevent the uneven
competition among unions that they believe may have contributed to the Marikana
tragedy.
Legislation
currently favours recognition of majority unions, leaving little legal space in
which minority unions can operate. This may have been a consequence of Cosatu’s
demand of “one industry, one union” at the time the legislation was being
drafted. As a result, current labour legislation holds that a union with
membership of 50% plus one in a specific workforce category can insist that
employers negotiate with it exclusively.
That
has suppressed free competition and has made it very difficult for employers to
create structures in which they can negotiate with minority unions. Cosatu,
however, is known to be opposed to any review of labour legislation. Following
the recent events, President Jacob Zuma also poured cold water on opposition
demands for such a review.
Marikana
could not have happened at a worse time. Negative market conditions, low
platinum prices, weakened demand, and global economic developments were already
putting pressures on production and profits. In 2008 the price of platinum –
historically more volatile than that of gold – fell from U$2,252 to U$774/oz.,
shedding almost two-thirds of its value. In February this year the platinum
price was at a high of U$1,729/oz before plunging to a low of U$1,384 in June.
By August platinum was trading at around U$1,390.
In
its interim results report released in June, the world’s biggest platinum
producer, Anglo American Platinum (Amplats), stated: “Global demand for
platinum during the first half of 2012 was marginally weaker than expected as
firmer jewellery demand, stimulated by current depressed price levels, was
unable to offset weak auto catalyst and investment demand. Industrial demand
for platinum remained flat as expected”.
The low global demand for platinum and the
very limited alternative markets resulted in mines looking at cost-cutting initiatives and down-scaling operations.
Naturally they would resist sudden demands for hefty pay increases outside of
pay agreements already officially in place and accompanied by illegal wildcat strikes. Another possible consequence
of the labour unrest is that many jobs could be lost. According to National
Union of Mineworkers (NUM) general secretary Frans Baleni as many as 10,000
jobs could be on the line.
But
even despite all these developments, the Chamber of Mines cautioned about making a conclusion
that the industry as a whole is in crisis. "We have to understand
the causes of the industrial action that is taking place," spokesman Vusi
Mabena said. “Strikes are not taking place across the sector, but are
restricted to platinum and possibly to gold. It is a serious generalisation to
say that the entire industry is in crisis.”
"At
the time when the strikes started, the platinum industry was already going
through difficult times," he said. “Then the demand for increases of wages
to R12,500 came on top of that.”
Finally,
Shanduka chairperson Cyril Ramaphosa, who sits on the board of Lonmin, believes
something good may yet come out of the Marikana tragedy. The industry, says
Ramaphosa, was poised for a “step-change” that will bring significant
improvement, he said.
There
is hope that the ghost of 1922, and now that of 2012, will be laid to rest.
Timeline of key developments before and after
Marikana
·
1999: Joseph Mathunjwa, a NUM leader at BHP
Billiton’s Douglas Colliery, forced out of the union then led by Gwede Mantashe
who is now ANC secretary-general. He launches AMCU and starts recruiting coal
and platinum miners in competition with NUM.
·
2006: Archie
Palane, NUM’s deputy secretary-general, popular on the platinum mines, is
prevented from succeeding Mantashe as secretary-general apparently for
political reasons. After he exits workers on platinum mines feel abandoned by
NUM.
·
2006 – 2012: AMCU makes serious inroads into
NUM membership but struggles for recognition and participation in formal
bargaining structures under existing labour legislation.
·
Thursday 20 January, 2012: Start of wildcat strike over pay and conditions at
Impala Platinum (Implats), Rustenburg. Three workers die in clashes between
AMCU strikers and NUM non-strikers and over 17,000 workers are fired.
·
Monday 5 March:
Implats strike ends and most workers are re-hired.
·
April:
Implats implements 8-10% pay increase as part of settlement with workers.
·
Friday 10 August: AMCU workers launch wildcat strike at Lonmin, Marikana demanding pay
hike.
·
Sunday 12 August: NUM and AMCU workers clash over wildcat strike – tensions rise.
·
Tuesday 14 August: Police gather at Lonmin, Marikana after striking AMCU workers and
supporters kill 10 people including 2 policemen.
·
Thursday 16 August: 34 workers die, 78 are injured and 270 arrested when police open fire
on Lonmin strikers, many of them heavily armed.
·
Friday 17 August: Meeting between Chamber of Mines and AMCU scheduled a week earlier
postponed due to previous day’s events.
·
Saturday 18 August: Mineral Resources Minister Susan Shabangu convenes urgent meeting of
mining industry stakeholders to address investor concerns following Lonmin
unrest. Expelled ANC youth leader Julius Malema urges other mineworkers to join
in the campaign waged by Lonmin workers.
·
Tuesday 21 August: Malema accompanies striking
miners to lay murder charges against police involved in shooting dead the 34
miners.
·
Wednesday 22 August: Unrest spreads to other mines.
·
Wednesday 22 August: President Jacob Zuma visits Marikana and scene of the shootings and
meets with strikers.
·
Thursday 23 August: National day of mourning declared. Malema calls for a "mining
revolution" in South Africa. President Zuma appoints judicial commission
of inquiry into Marikana tragedy.
·
Thursday 23 August: Chamber of Mines holds first meeting with AMCU.
·
Monday 3 September: Four miners injured in strike violence at Modder East goldmine. Authorities
release the first batch of the 270 Marikana miners.
·
Wednesday 5 September: Trade union Solidarity lays incitement charge
against Julius Malema. Minister in the Presidency Collins Chabane and NUM
strongly condemn Malema’s provocative statements and populist rhetoric.
·
Friday 7 September: Floyd Shivambu, suspended ANC Youth League spokesperson and now
campaign leader for the Friends of the Youth League, tells Mail & Guardian campaign to destabilise mines and national mass
action to bring mining industry to a halt will be intensified.
·
Monday 10 September: Some 15,000 workers down tools
at a Gold Fields mine.
·
Tuesday 11 September: Body of man hacked to death found at Marikana bringing
death toll to 45. Around 3% of Lonmin’s 28,000 Marikana workers report for
duty.
·
Tuesday 11 September: Julius Malema addresses 15,000 striking workers at
Gold Fields’ Kloof and Driefontein Complex (KDC) near Carletonville, telling
them there must be a national strike at all the mines until NUM leadership steps
down and pay is increased to R12, 500. Chamber of Mines and NUM dismiss Malema
and his calls.
·
Wednesday 12 September: Anglo American Platinum halts operations at 5 mines in
Rustenburg area over safety concerns after some workers strike, intimidating
non-strikers.
·
Thursday 13 September: Calls by labour experts, non-Cosatu unions, political
parties, mining companies and others that labour laws be reviewed to allow
smaller unions to participate in wage negotiations and avoid conflict like that
at Lonmin.
·
Friday 14 September: Labour unrest at Aquarius Platinum in Kroondal near Rustenburg. The
mine halts operations. Ferrochrome producer Xstrata evacuates all staff at its
Kroondal chrome mine due to increased protests. Government announces a security
clampdown.
·
Saturday 15 September: Police
and soldiers move into Marikana. Several are injured in clashes,
including many women.
·
Monday 17 September: Police arrest 42 people for embarking on an illegal strike at Royal
Bafokeng Platinum. Aquarius Platinum resumes operations. President Jacob Zuma
tells Cosatu’s national congress that work stoppages on platinum, gold and coal
mines have caused a loss of production to the tune of R4.62-billion in the last
nine months, while the state had lost a further R3.1-billion.
·
Tuesday 18 September: Workers and management at Marikana agree to wage
increases ranging between 10% and 22% and an end to the strike. Anglo American
Platinum reopens five mines closed the previous week over unrest.
·
Wednesday 19 September: Police fired rubber bullets at a crowd near an Anglo American Platinum mine
in Rustenburg. Workers insist their strike continues but the company says it is
over.
·
Thursday 20 September: Striking Lonmin workers start returning to work as a
result of the wage agreement agreed to. Cosatu and others warn the agreement
could destabilise formal bargaining structures and systems and workers will
demand the same at other mines. NUM says up to 10,000 jobs could be lost as
mining companies say some shafts have become unprofitable due to recent events.
Labour unrest spreads to AngloGold Ashanti.
·
Friday 21 September: NUM meets with Chamber of Mines to discuss wages of mine workers
nationally.
