By Devon Maylie
JOHANNESBURG--Members of the Association of Mineworkers and
Construction Union voted this week to go on strike at platinum
producer Lonmin Plc (LNMIY), but union bosses said Thursday they
are trying to stave off more unrest.
"Workers voted for a strike but we asked them for more time to
try and meet management," AMCU president Joseph Mathunjwa said. "We
want to avoid a strike."
AMCU members are frustrated with the union recognition process
at Lonmin's mine. The once dominant National Union of Mineworkers
lost its majority at the mine to AMCU, which now has 70% of
unionized members, following a violent strike last August when
police killed 34 protesters. Disputes over what happens now that
AMCU is the dominant union have caused renewed unrest at the
mine.
In the past month there has been a resurgence of wildcat strikes
and mine violence. Union leaders for both AMCU and the NUM have
been shot and killed in recent weeks. Unprotected strikes also hit
Impala Platinum Holdings Ltd. (IMPUY) earlier Tuesday and workers
at three chrome mines run by Glencore Xstrata (GLNCY) remain on
strike since last week.
The unrest has contributed to government concern around sluggish
economic growth and a weakening rand, which has hit fresh four year
lows amid the recent labor disruptions. The labor minister this
week said the country could consider a peacekeeping force to the
mines to maintain stability.
"We are trying to avert this strike...we don't want AMCU blamed
for the economic situation of the country," Mr. Mathunjwa said.
Even if AMCU is able to convince its members to avoid another
strike now, the mining sector as a whole faces the possibility of
more industrial action as gold and coal producers begin
negotiations for a new two-year wage agreement this month. Wage
talks are normally accompanied by strikes as part of the
negotiating process to demand higher wage increases.
Write to Devon Maylie at devon.maylie@dowjones.com
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