The biggest union in South Africa yesterday (28th January) threatened the possibility of strikes as the country's mining companies are poised to cut thousands of jobs, Reuters reports.

According to the Chamber of Mines, around 14,000 jobs are at risk, but some commentators have explained that eight per cent of the sector's workforce - or 40,000 employees - will be laid off.

The potential cuts are largely motivated by the current depressed metal prices but the National Union of Mineworkers has stated that it may resort to strikes to save workers' positions.

Lesiba Seshoka, spokesman for the union, was quoted by the news provider as saying: "We certainly cannot rule out the possibility of a strike.

"We will not just fight in the boardrooms. We shall be guided by this motto: an injury to one is an injury to all."

With South African laws stating that companies must provide adequate reasons for releasing staff, the government has created a task team designed to save jobs and prevent the country's unemployment rate rising further above the current 23 per cent.

However, platinum mines are being badly affected by the fact that the price of the precious metal - of which South Africa is the world's largest producer - has been slashed by 60 per cent since March 2008.

Some are even operating at a loss as they struggle to cope with slumping demand around the world for new cars, which contain exhaust-cleaning catalysts that are manufactured with platinum.

Wonder Nyanjowa, a mining analyst for Frost and Sullivan, told Reuters: "A big casualty has been the motor sector, which means the platinum sector will not recover quickly."

Both Lonmin and Aquarius Platinum have announced plans to reduce output and cut thousands of jobs, while Anglo Platinum, the world's largest producer of the white metal, has decreased expansion and expenditure for 2009.



Source:

SAfrica mine job cuts deepen, unions warn of strikes (28/01/09)
http://www.guardian.co.uk/business/feedarticle/8331173