1. Recent Labour
Developments in the
Mining Industry
Anastasia Vatalidis
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2. SOUTH AFRICAN LABOUR ENVIRONMENT
 Highly unionised
 In 2001 approximately 33.88% of non domestic
employees aged 15 and above were unionised
 Mining industry in particular is highly unionised
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3. LABOUR RELATIONS ACT
 Restricts the proliferation of trade unions
 Prescribes a complex verification process
 Organisational rights -
 Sufficiently representative trade unions
 access to the workplace
 union subscriptions — one month‘s notice to revoke
 Majority representative trade unions
 union representatives
 leave for union activities
 access to company information
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4. COLLECTIVE AGREEMENTS
Recognition Agreements
entrench the right to bargain on particular trade unions
binds non-members (majority trade unions)
can only be cancelled on notice or due to a lack of majority
Agency Shop Agreements
compel non-union members to pay “agency fee” to majorit y
trade unions
Closed Shop Agreements
compel all employees to join particular trade union
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5. OLD GUARD
 NUM
 established 1982
 represents category 3 to 8 employees also referred to as
category B employees in the industry
 UASA
 established 1894
 represents miners, artisans and first line supervisors referred
to as category A employees in the industry
 Solidarity
 established 1902
 category A employees
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6. CHALLENGES FACING THE OLD GUARD
 entrenched through LRA and collective agreements
 represent the majority of employees in the bargaining
units
 Complacent?
 historically there has been no real challenge
 lack of strong leadership
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7. NEW KIDS ON THE BLOCK
 AMCU
 established in 1998
 breakaway from NUM
 registered in 2001
 opportunity to reach out to disillusioned employees
 struggling to acquire organisational rights due to LRA
structures and pre-existing collective agreements
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8. NEW KIDS ON THE BLOCK Cont.
 Democratic Socialist Movement
 breakaway from ANC in 1996
 supports nationalisation of mines
 demanding the right to “negotiate”
 planning a national mine march
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9. THE BAD, THE UGLY AND THE GOOD
 The bad-
 old guard has lost its leadership
 old guard has lost touch with the needs of members
 lack of significant change in recent years has lead to
employee frustration
 AMCU’s frustration at inability to acquire organisational
rights
 AMCU accused of resorting to ”dirty tactics”
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10. THE BAD, THE UGLY AND THE GOOD Cont.
 The ugly-
 mines pressurised to revisit existing binding wage
agreements
 wages have been increased up to 22% in some instances
 mines ”negotiating” with non-union bodies
 new players may unsettle the current structures
 new players fighting for a share of the lucrative pie
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11. THE BAD, THE UGLY AND THE GOOD Cont.
 The ugly-
 on-going unprotected strikes across all mining sectors mid
2012
 Marikana tragedy - 38 killed
 no end in sight to the violent strike action
 mines are unable to easily replace workforce
 downgrading of the South African economy
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12. THE BAD, THE UGLY AND THE GOOD Cont.
 The good-
 Commission of enquiry
 Salaries have increased
 Stakeholders are forced to confront and deal with
problems which may have been looming for some time
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13. THE LABOUR ISSUES FACING THE
INDUSTRY
 Demand for substantial wage increases
 Marginal shafts and mines
 Nationalisation of mines
 Ongoing work stoppages
 Trade unions challenging each other
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14. WAY FORWARD
 Mines -
 revise their labour relations policies and bargaining structures
 ensure that they negotiate with legitimate bodies that are duly
authorised and mandated
 Trade unions -
 accountable to their members
 address leadership issues
 Government -
 revise legislation which entrench trade unions
 review its alliance with its labour partners
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15. THANK YOU
Anastasia Vatalidis
18 October 2012
Nothing in this presentation should be construed as formal
legal advice from any lawyer or this firm. Readers are
advised to consult professional legal advisors for guidance
on legislation which may affect their businesses.
© 2012 Werksmans Incorporated trading as Werksmans
Attorneys. All rights reserved.
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