Devastating consequences of AMCU strike and unemployment
A second giant in the platinum belt professed it can no longer keep up with its contractual obligations to pay suppliers. This is caused by the 10 week long strike held up by The Association for Mineworkers and Construction Union (Amcu).
A Force majeure was declared by Anglo American Platinum. A clause in contracts to remove liability for natural and unavoidable catastrophes that restrict participants from accomplishing responsibilities. These apply to its contracts with companies that supply goods and services. The mine is shut down and can’t receive supplies or service. The real loss is business opportunities for small business.
Impala Platinum declared it in the fifth week of the strike. It is no longer only the mining houses that are losing, but also many private businesses that serve the mines. The ripple effect of this strike is quickly moving very wide. The economy of South Africa is hurt and therefore every resident in the country.
Employees of contractors connected to the mines have had their contracts terminated. More unemployment! More Poverty!
Workers and their families are hungry, children are not going to school, local businesses are closing and crime is increasing.
Will the damage ever be repaired?
Amcu Strike: The state of negotiations
The Association for Mineworkers and Construction Union (Amcu) is demanding a minimum wage increase of R12 500 over a four year period. That will be a 30% increase per annum. So far the strike is costing the economy of SA R15.8bn in production and wage losses.
The employer companies offered increases of between 7% and 9% over a three year period. They confess that Amcu’s demands will result in the downfall of the mining companies.
Facilitation by the Commission for Conciliation Mediation and Arbitration failed to produce an agreement.
Amcu will hand over a memorandum at Lonmin offices in Johannesburg today. These marches will go to Parliament after the Easter holidays if the union’s demands were not adhered to by then.
Lonmin said the dispute can only be settled if Amcu would agree to a figure near nine percent.
Impala Platinum said the parties are still far apart.
Is there any hope of this catastrophic strike to end in the near future?