Platinum miners back to work after 5 month strike

The strike that affected 40% of global platinum production and cost over $2.25 billion in lost revenue – is over

What has been one of South Africa’s most damaging strikes ended today with thousands of workers returning to work following a successful wage deal.

The strike began with the Association of Mineworkers and Construction Union (AMCU) demanding an immediate doubling of basic wages to 12,500 rand ($1,200) a month – what it called a “living wage”.

The final settlement didn’t reach that of their demands, with wage raises agreed at up to 20% annually.

In an interview with Reuters, a supervisor at the Marikana operations said it could still be a week or more before any workers went back underground and that return to full production may still be three months away.

As workers returned to the Lomin processing plant they could be heard shouting “Viva AMCU! Viva Lonmin!”, with miners dancing and singing as they reached the plant’s gates.

Analysts suggest that the effected companies could find the 20% wage increase difficult to absorb – as at current prices estimates show half of South Africa’s platinum shafts to have already been running at a loss before the strike.

Workers’ jubilation may be short lived as “inevitable” restructuring could lead to job losses and longer hours.

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