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Despite repeated appeals coupled with threats of possible legal actions against them, majority of the workers of the world’s biggest producer of platinum, Anglo American plc (LSE:AAL), still have not returned to work a week after the global commodities miner resumed operations at its Rustenburg mines in South Africa.
In a statement issued today, Anglo American’s 80%-owned subsidiary, Anglo American Platinum Ltd. (Amplats), said attendance in five of its mines at the platinum mining centre has been less than 20% since operations resumed last 18th September, the day workers at rival platinum producer, Lonmin plc (LSE:LMI), cheered for nearly getting the wage increase they asked for – the root cause of the labour unrest now spreading throughout the South Africa’s mining sector.
The absentees account for over 20,000 out of the 26,000 workers employed at Amplats’ platinum mines that have not gone back to working the mines and related support services, impacting the company’s production, which has now lost some 20,000 ounces of the jewellery material and carbon emission reducer since mining operations were suspended on 12th September, at the height of the protest actions of Lonmin strikers.
Reiterating its statement back last 19th September, Amplats has categorically stated today its employees are holding a strike, which it called “illegal”, citing a violation of a court order issued on the 12th September, and said it will initiate disciplinary actions by Thursday, 27th September, “against those employees who persist in unlawful strike action”.
“If our employees do not heed this call, we will simply have no choice but to begin disciplinary action tomorrow against any employees who remain on strike and that action could lead to dismissals,” Amplats Chief Executive, Chris Griffith warned the absent employees.
Mr. Griffith admitted, as have been communicated in the past week, the company’s Rustenburg operations “are under economic pressure” and hinted possibilities of closure of the mines saying “their future is already under review”.
“I am making a personal appeal for all striking employees to return to work immediately,” Mr. Griffith continued to appeal to his subordinates to return to work.
The company is in the middle of holding talks with some 300 employees from one of the firm’s mines who presented a list of demands last July 2012, administered by South Africa’s labour dispute resolution body, Commission for Conciliation, Mediation, and Arbitration (CCMA).
Shares of the FTSE 100 constituent fell 3.9% equivalent to 74.5 pence lost by 3:30 PM GMT to £18.26, a few hours after the statement was issued.
Company Spotlight
Anglo American plc is one of the world’s largest mining companies, producing precious metals and natural resources, including diamonds, platinum group of metals, copper, nickel, coal, iron ore, and manganese.
