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Since last week, the Association of Mineworkers and Construction Union (AMCU) has been on strike at the Sibanye mine in South Africa
Since last week, the Association of Mineworkers and Construction Union (AMCU) has been on strike.
The union—which is South Africa’s biggest—started a strike at one of the platinum mines operated by Sibanye Gold (NYSE:SBGL) over transport, bonuses and safety pay.
Bloomberg reported that the stoppage commenced late last week.
Spokesman Manzini Zungu told Bloomberg the strike is about traveling allowances, management not providing transport, safety bonuses, and drilling and risk allowances.
“Management rejected their demands regarding the above and they have engaged with them since January this year,” he said.
A court order was also issued, wherein it declared the strike “unlawful and unprotected,” in a statement from spokesman James Wellsted. This means AMCU is required by the order to suspend any strike action by its members.
Earlier this week, it was also reported that the workers may lose their jobs, according to its chief executive.
Between 80 and 100 jobs could potentially be at risk after a number of workers failed to abide by the court order and return to work Monday evening.
Neal Froneman told Reuters they “will not be bullied or intimidated by unions.”
“The platinum group metals industry is highly exposed to disruptions and companies cannot accept that,” he said.
As far as the platinum price, year-to-date it’s made a 15.19 percent increase of $130 to sit at $986, although for the month of May it dropped from $1,062, or a 6.63 decrease.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.