Striking platinum miners in South Africa have signed a wage deal ending a bloody 5-week strike at the Lonmin PLC mine that had spread to the gold and chrome sectors of the industry which anchors the economy of Africa’s richest economy.
The agreement for the company’s 28,000 miners ends a strike with political and economic repercussions, but does not resolve rage engendered by the country’s huge inequality and the government’s failure to address massive unemployment and poverty.
Reporters watched as representatives of three unions, of strikers not represented by any union, and the London-registered company signed the deal late on Tuesday night.
Lonmin agreed to pay a gross monthly wage of US$1,385 to rock drill operators who had been demanding a take-home monthly wage of $1,560. They also agreed to pay all miners a once-off payment of US$250. A statement from the company said the agreement includes a previously agreed upon 9-10 per cent raise for certain employees in October, and addressed the issue of promotions for some categories of workers.
The strike had spread to gold and chrome mines, scaring foreign investors in Africa’s largest economy and, according to President Jacob Zuma, costing the country at least US$500 million.
Media coverage of miners living in tin shacks without electricity or running water has highlighted government failures to improve the lives of the majority of poor South Africans suffering high unemployment and poor education and health services.