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Platinum Strike

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Super Contributor
Seems the platinum strike is finally over.. I see Amcu is calling this a historic victory for the workers.. Haven't really heard what the terms and conditions are but this seems rather bad: However, the employers did not agree to all Amcu's demands. Mathunjwa said the fact that the mining houses did not agree to a moratorium on retrenchments was "a challenge", but called on the media to focus on the fact that the strike was coming to an end and on "the victory for the workers." The workers seemingly also did not get the R3 000 bonus demanded last week to return to work. http://www.moneyweb.co.za/moneyweb-mining/platinum-workers-to-return-to-work-on-wednesday--m Wonder if it will still be an historic victory if the employees realise they are being retrenched and there will be no money regardless of this agreement..
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Frequent Contributor
Historic? It is a sad day that the union can call this a victory. No matter what the details of the agreement is, the workers will never catch up onthe 5 months lost pay. They will end up borrowing money at high interest rates just to get by and in 4 years time when the current agreement ends we will have a repeat performance. In the process you will also see some major cutbacks and mechanisation taking place. This is a loss for both parties as far as I m concerned.
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Valued Contributor
the mistake is thinking they have expenses they weren't meeting while not earning .. aside from some unsecured loans they don't .. sure families had it tough, food was scarce etc. but they certainly don't have saving plans, car loans, home loans, ra's etc .. so it not about the lost money, it about 5 months of serious hardship .. and too their mind they (and future miners) have benefited going forward ..
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Super Contributor
I think if the mining giants really have the needs of the employees in mind they need to start educating employees in savings and budgeting. Sure it is probably not their responsibility but if employees understand why you loose out if your income is less than expenses, maybe they get the picture of why these companies can't afford the wage increases..
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Frequent Contributor
Don't know about that, apparently these guys have a lot of garnish orders riding on their salaries, which was part of the problem a year ago because their take home pay was not that much. So they must have some accou ts and debt. I fully agree on education, it will help in the long run, but start with the unions first!
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Frequent Contributor
Now would also be a good time to review executive management's salaries....
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Super Contributor
Do you mean party hats, balloons and bonnusses for everone? cause the only thing that has changed is that built up inventory is down and that wage expenses for the year got cut by 25% plus. Win for management all round.
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Super Contributor
But winning the battle is not the same as winning the war. This strike is a watershed because unless nobody is concentrating ( admittedly a South African commodity in short supply) this is not going likely to repeat itself. There is an equity issue here. There has to be a smaller workforce participating in equity. That is not a question linked to eh vagaries of the market it is entirely linked to the will of the equity owners. Based on the past there is a risk that they will not take up this opportunity.
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Valued Contributor
it not so much about education, if your take home is R6k or so forget budgets and the like .. it about survival ..
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Super Contributor
Let's see, with strike over.....IMP should get going, more money for SHP, more loans from ABL, more stuff from ELI, and antiretrovirals .....now they all in my " Mad Money Portfolio"
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Super Contributor
I dont get what you are saying. Are you talking about mechanising?
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Frequent Contributor
Good point, not much has changed. But if they where still selling platinum from their stockpiles how come everyone is crying about the strike causing SA's economic growth to be pulled down? I smell a rat.
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Super Contributor
As a person who really encourages education and knowledge on money matters, this is a strange comment?? Surely it is more important to budget properly if you get only 6K as apposed to 20K?
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Valued Contributor
not at all .. first I would say feed yourself .. then clothing and house .. then we can talk budgets etc.
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Valued Contributor
when your life is poverty you have bigger issue .. sure even the poor should budget, easy to say .. harder to actually do ??
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Super Contributor
Those are fundamental for every day living I would agree but it doesn't mean that you don't need to plan for it.. Can you really afford to eat KFC every Thursday and Tuesday or financing a nice pair of shoes at UZZI as opposed Mr Price shoes..
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Regular Contributor
The only 'winners' I can see in this are Zimbabwe (no strikes at Zimplats or Unki), and Platinum Group Metals and Ivanhoe that are both Canadian and both of which have mechanisable ore bodies that will be mined in a few years. Very obvious takeover/deal targets. Lonmin has to be considering it's future - only assets are strike prone and labour intensive.
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Frequent Contributor
The crux of the matter!
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