South African platinum miners reject pay offer, strike nears four months


South African platinum miners will continue their strike after workers rejected the latest wage offer from employers, according to the president of the AMCU union that is spearheading the strike.

The world's three largest mining companies - Anglo American Platinum (AGPPY), Impala Platinum (IMPUY) and Lonmin (LNMIF) - had revised their wage offer at the end of April with an above-inflation salary increase of as much as 10%.

The strike has been running for nearly four months and has cut global production of the metal by ~40%; the big three miners are estimated to have lost ~$1.5B so far.

ETFs: PPLT, PTM, PGM

Comments (2)
  • David at Imperial Beach
    , contributor
    Comments (4382) | Send Message
     
    Mining companies are between a rock and a hard place. Current platinum price does not support a wage increase. Cost of living for miners is going up due to local inflation. I would not be surprised if wage strikes crippled other commodities in the near future.
    5 May 2014, 10:58 AM Reply Like
  • TDWelander
    , contributor
    Comments (624) | Send Message
     
    This is how the small miners keep a toe hold in a market. When labor shuts down large mines, the small miners do well. So labor is only hurting themselves,
    there will always be small miners to take up at least some of the slack at higher prices due to the artificial shortage from a labor strike stopping production.

     

    I suggest someone explain this fundamental to labor. Labor is as much on the hot seat as anyone in controlling costs in their lives. So they do not have to go around demanding more money; especially when market condition will not allow it.
    There are almost always substitute available for what ever goes up in prices.
    On needs to go find the substitute to keep their life stable, rather than putting
    up with increasing costs. Also cutting back in an area where prices increase have occurred and moved into another area where prices have not increased is also an
    alternative.

     

    Seem like the companies should be showing their labor where the substitutes are and where other alternative existence to help there workers avoid price increase.

     

    The the final answer is always the same, if you do not like what you are being paid, and none of the above alternative work for you, go find another job.
    5 May 2014, 01:50 PM Reply Like
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