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Anglo American Platinum sacks 12,000 striking South African miners Anglo American Platinum sacks 12,000 striking South African miners
(about 5 hours later)
The world's biggest platinum producer has sacked 12,000 workers at its largest South African platinum mine by text message and email following three weeks of strikes over pay and working conditions. The world's biggest platinum producer has sacked 12,000 workers by text message and email at its largest South African platinum mine following three weeks of strikes over pay and working conditions.
Bosses at Anglo American Platinum, or Amplats, a subsidiary of London-listed Anglo American, made the decision on Friday on another day of violent clashes between South African police and workers which left one person dead. Bosses at Anglo American Platinum, or Amplats, a subsidiary of London-listed Anglo American, made the decision on Friday on another day of violent clashes between South African police and workers that left one person dead.
The ongoing strike has shut four out of the firm's five mines in the Rustenburg area, 70 miles from Johannesburg, costing Amplats production of 39,000 ounces of platinum, worth £51m, according to the company. The strike has shut four of the firm's five mines in the Rustenburg area, 70 miles from Johannesburg, costing Amplats production of 39,000 ounces of platinum, worth £51m, according to the company. Two more mines owned by Amplats were closed as the strikes spread, with the firm unable to guarantee the safety of staff who reported for duty.
Two more mines owned by Amplats were closed as the strikes spread, with the firm unable to guarantee the safety of those staff who reported for duty. What started as a platinum mining issue has now extended to other industries, with the oil group Shell declaring that it was unable to honour fuel deliveries after 20,000 truck drivers continued a two-week strike. Strikes are also under way at gold and iron ore mines and production of 2,000 cars was lost after a wildcat strike at the Toyota plant in Durban.
What started as a platinum mining issue has now extended into other industries, with the oil giant Shell declaring it was unable to honour fuel deliveries after 20,000 truck drivers continued their own two-week strike. Strikes are also under way at gold and iron ore mines and production of 2,000 cars was lost after a wildcat strike at the Toyota plant in Durban. Amplats decided to sack the miners four days after issuing an ultimatum to the 26,000 strikers to return to work. Only 20% of workers returned, meaning that the mines remained shut.
Amplats made the decision to sack the miners four days after issuing an ultimatum to the 26,000 strikers telling them to return to work. However, only 20% of workers heeded the advice, meaning the mines remained shut. Those who failed to turn up for work were given a second ultimatum to attend disciplinary hearings, but 12,000 decided against being represented and were dismissed.
Those who failed to turn up for work were given a second ultimatum to attend disciplinary hearings, but 12,000 decided against being represented and were subsequently dismissed. Workers are demanding higher salaries, claiming that rival firm Lonmin has set a precedent. Last month, Lonmin gave its staff a 22% pay rise after weeks of unrest that saw 34 people shot dead. An inquiry into the killings began last week.
Workers are demanding higher salaries, claiming rival firm Lonmin has set a precedent. Last month Lonmin gave its staff a 22% pay rise after weeks of unrest which saw 34 people shot dead. An inquiry into the killings began last week. The Lonmin dispute threatened to reignite on Friday after a National Union of Mineworkers official was shot dead in what NUM spokesman Lesiba Seshoka described as an "execution-style" killing.
On Thursday night one Amplats worker died in clashes after he was thought to be struck by a rubber bullet fired by police. On Thursday night, an Amplats worker died in clashes. He was thought to have been struck by a police rubber bullet.
The unrest led to protesters in a shanty town near the Amplats mine barricading streets with rocks and burning tyres, having previously burned down a training centre and two conveyor belts, making it harder to restart operations. The unrest led to protesters in a shanty town near the Amplats mine barricading streets with rocks and burning tyres, having burned down a training centre and two conveyor belts, making it harder to restart operations.
Amplats bosses have taken a hardline approach to the strikes, refusing to offer a pay rise similar to Lonmin's settlement, although the chief executive, Chris Griffith, did suggest that a salary review due next year could start earlier. Amplats bosses have refused to offer a pay rise similar to Lonmin's, although the chief executive, Chris Griffith, did suggest that a salary review due next year could start earlier.
He said: "The company is committed to participating in the platinum centralised engagement structures driven by the Chamber of Mines, as well as exploring the possibility of bringing forward wage negotiations within our current agreements." He said: "The company is committed to participating in the platinum centralised engagement structures driven by the Chamber of Mines, as well as exploring the possibility of bringing forward wage negotiations within our current agreements."
The sackings are unlikely to bring stability to the company, which has seen its shares fall nearly 13% since the unrest started. On Friday night shares closed down 1.5p at £18.12. The sackings are unlikely to bring stability to the company, which has seen its share price fall by 13% since the unrest started. On Friday night, shares closed down 1.5p at £18.12. And any resolution does not guarantee a revival. Lonmin shares have plummeted nearly 27% since August, despite its strike ending.
And any resolution does not guarantee a revival. Lonmin shares have plummeted nearly 27% since August, despite its own strike coming to an end. Anglo American is understood to be considering closing some of its South African mines as it weighs its future in the country. Credit Suisse analysts suggested last week that the company could shut two or three of its five operating shafts.
Anglo American is understood to be considering closing some of its South African mines as it weighs its future in the country. Credit Suisse analysts suggested last week that the company could reduce its exposure by more than half. Shell effectively said the situation was too dangerous for it to meet its delivery contract: "There is fuel available across the country, so the issue is not fuel supply, but the challenge is delivering it safely to our retail sites."
They wrote: "Statements from the company on not negotiating on pay (outside of formal procedures) and the economic pressure on the assets could be a precursor to shutting down two or three of the five operating shafts." Many supermarkets and logistics firms are running on backup plans because of the drivers' strike and the US car group General Motors said production at its Port Elizabeth plant on the south coast had also been affected.
Shell declared force majeure on fuel deliveries – effectively saying the situation was too dangerous for it to meets its delivery contract. AngloGold Ashanti, South Africa's biggest bullion producer, has lost nearly all local production due to 24,000 workers being on strike, while rival Harmony Gold has also taken a hit. On Tuesday another mining firm, Gold Fields, evicted 5,000 striking employees from company dormitories, saying they were intimidating fellow workers.
Shell said: "There is fuel available across the country so the issue is not fuel supply but the challenge is delivering it safely to our retail sites."
Many supermarkets and logistics firms are running on backup plans because of the drivers' strike and the US car giant General Motors said production at its Port Elizabeth plant on the south coast has also been affected.
AngloGold Ashanti, South Africa's biggest bullion producer, has lost nearly all local production due to 24,000 workers on strike, while rival Harmony Gold has also taken a hit.
On Tuesday, another mining firm, Gold Fields, evicted 5,000 striking employees from company dormitories, saying they were intimidating fellow workers.
About 300 strikers at Kumba Iron Ore have also blockaded the company's giant Sishen mine in the remote Northern Cape province.About 300 strikers at Kumba Iron Ore have also blockaded the company's giant Sishen mine in the remote Northern Cape province.
The last mass sackings in the platinum mining sector took place in February, when Impala Platinum dismissed 17,000 workers at its own Rustenburg operation after similar wildcat strikes. The last mass sackings in the platinum mining sector took place in February, when Impala Platinum dismissed 17,000 workers at its Rustenburg operation after wildcat strikes. It led to an escalation of violence and the company re-employed nearly 5,000 workers. Amplats has not said whether it will consider re-employing any of the 12,000 former workers.
It led to an escalation of violence and the company re-employed nearly 5,000 workers. Amplats has not indicated whether it will consider re-employing any of the 12,000 former workers. More than 75,000 miners, 15% of the workforce in a sector that accounts for 6% of output, have been out on unofficial strikes.
More than 75,000 miners, or 15% of the workforce in a sector that accounts for 6% of output, have been out on unofficial strikes.