This is not what even labour union movements’ man of the moment, Joseph Mathunjwa, had anticipated when he saw months of gruelling negotiations being yielded by a princely pay hike for members of his organisation. Mine workers who recently celebrated a befitting end to their five-month old strike are waking up to the reality that they might not even last a year enjoying their new packages, as their employer is about to embark on a retrenchment exercise to reduce costs.
Anglo American, the dual-listed company whose revenue has been severely affected by the strike, will soon announce plans to dispose of South African platinum mines, as part of a strategic review to sell its non-core assets.Unavoidably, this means that the world’s biggest metal producer will have to shed a fifth of its workforce (about 20,000 employees).
With most big players uncertain about increasing investment in mining, the most probable buyer might be a junior miner, with mounting speculation pointing to Sibanye Gold.