Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

South Africa's AMCU union to expand Sibanye-Stillwater strike to platinum operations

Published 14/01/2019, 14:46
Updated 14/01/2019, 14:50
© Reuters.  South Africa's AMCU union to expand Sibanye-Stillwater strike to platinum operations

© Reuters. South Africa's AMCU union to expand Sibanye-Stillwater strike to platinum operations

JOHANNESBURG (Reuters) - South Africa's Association of Mineworkers and Construction Union (AMCU) is planning to strike at Sibanye-Stillwater's (J:SGLJ) local platinum operations, it said on Monday, expanding an earlier stoppage affecting its gold facilities.

Since the union downed tools at Sibanye 's gold operations in mid-November, four employees have been killed during strike-related violence and the firm has said it expected to miss its 2018 bullion output forecast.

AMCU said on Monday that the new strike would begin on Jan. 22 and involve around 12,500 of its members.

Sibanye said it was unable to estimate what impact the expansion of the strike would have on operations at its South African platinum mines. AMCU is the majority union at all of Sibanye's local platinum mines.

"There is a strong chance that there will be an operational impact at Rustenburg," Sibanye-Stillwater spokesman James Wellsted said, referring to one of Sibanye's major mines.

AMCU embarked on the strike at Sibanye's gold operations after wage talks with the company broke down, despite the firm reaching a three-year wage agreement with the National Union of Mineworkers (NUM), Solidarity and UASA.

Sibanye says those three unions make up a majority of employees at its gold operations, allowing it to extend the agreement to other minority unions.

Gold producers in Africa's most industrialised economy have argued that above-inflation wage hikes have added to the cost burden of the bullion industry, which has been hit by depressed prices and labour unrest.

Shares in Sibanye-Stillwater were down 0.37 percent to 10.65 rand by 1342 GMT.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.