By Devon Maylie
JOHANNESBURG--South Africa's biggest platinum union said
Thursday that a strike will continue until companies make a better
wage offer, as labor unrest threatens the country's already fragile
economy.
Workers at the country's largest platinum mines have been on
strike since Jan. 23 demanding higher salaries, costing the country
and companies billions in lost revenue.
"Ours is a fight for survival and we will see it through," said
Joseph Mathunjwa, president of the Association of Mineworkers and
Construction Union.
The union wants salaries increased to a minimum of 12,500 rand
($1,243) a month from current entry level wages of around ZAR5,000
a month. The companies have offered a 9% increase.
The union's comments come a day after the world's three biggest
platinum producers said they won't meet the demand and that the
strike has already cost the industry a combined ZAR4.4 billion in
lost revenue.
"Prolonged strike action will result in more losses, in further
fundamental restructuring and, inevitably, this will have a
negative impact on jobs and indeed the economy," the chief
executives of Impala Platinum Holdings Ltd. and Lonmin PLC said
Wednesday in a joint statement.
The world's largest platinum producer, Anglo American Platinum
Ltd., said earlier this month that the company is looking at ways
to mechanize mining more amid the increased labor unrest, and that
it could shut off mines.
The strike is hurting South Africa's already weakened economy.
Revenue from mineral exports accounts for more than half of total
export revenue. President Jacob Zuma last week urged companies and
unions to find a solution to the strikes but the union's comments
and the companies' stance show a resolution will be difficult.
Mr. Mathunjwa on Thursday said that chief executives should cut
their salaries to save their mines.
"Our people are worse off today than they were in 1994," he
added.
Write to Devon Maylie at devon.maylie@wsj.com
