AMCU Warns of Labor Strike at Sibanye Gold Mine

Sibanye Gold had reached an agreement on a three-year wage contract with other three labor unions.

SEATTLE (Scrap Monster): The Association of Mineworkers and Construction Union (AMCU) issued a 48-hours strike notice to Sibanye Gold Ltd. The notice warns of strike action at the Sibnaye-Stillwater gold mine operations in South Africa.

According to AMCU, the company has been given 48 hours to comeback with a revised wage offer. The members belonging to the union will go on strike starting evening shift on November 21^st. Meanwhile, the company stated that the deal reached with other unions is fair and final. It does not plan to increase the offer. Furthermore, striking workers would not be paid by the company. The AMCU leadership has taken disappointing step, said Neal Froneman, Sibanye chief executive.

Sibanye Gold had reached an agreement on a three-year wage contract with other three labor unions- the National Union of Mineworkers (the NUM), Solidarity and UASA. As per this contract, all Category 4-8 surface and underground employees will receive hike in basic wages by R700 per month during the first two years. In the third year, they will receive a hike of R825 per month. The contract also proposes hike in housing allowance and medical allowance. However, AMCU had declined to sign the offer, demanding a better deal. The company had turned down the AMCU’s wage hike proposal, saying that it is highly unaffordable.

Striking a deal with AMCU is crucial as the union represents nearly 43% of gold mine workers in Sibanye’s South African gold operations.

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