Trade unions in the South African mining sector have again underlined their threat of strike action if the government does not meet their demands, Reuters reported yesterday (6th July).

With the country experiencing its first recession for 17 years, new President Jacob Zuma is struggling to accommodate increased expenditure as he attempts to appease a number of groups.

However, unions played a key role in his ascent to power in May following the ousting of Thabo Mbeki and are now keen to be repaid with new policies designed to benefit workers and the poor.

"It is all about the power to determine policy. We are going to see increased labour and industrial action in the coming months," Leon Myburgh, Sub-Saharan Africa Specialist at Citigroup, told the news provider.

The National Union of Mineworkers has stated that its members at the world's two largest platinum producers - Anglo Platinum and Impala Platinum - will strike if pay demands are not met.

In addition, the COSATU labour federation has warned of the possibility of country-wide strikes after advocating calls from the militant youth wing of the African National Congress (ANC) to nationalise mines.

"The news is clearly worrying," commented Peter Attard Montalto, Emerging Markets Economist at Nomura, in a Reuters interview.

"There is some struggle within the ANC [alliance with COSATU and the South African Communist Party] to change policy direction, for payback of what the left sees as its dues for getting Zuma to power."

The pgm industry will continue to monitor developments with interest, as any strike action would presumably result in mine closures and therefore decreased production.

Source:

ANALYSIS-South Africa's unions likely to step up strikes (06/07/09)

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