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The Federation of Unions of South Africa (FEDUSA) congratulates the parties involved in brokering the wage settlement at the embattled Marikana operations of the Lonmin mining group reached on Tuesday. However, FEDUSA remains concerned that the lacking regulation of collective bargaining in the mining sector might still lead to further problems in future.

FEDUSA received reports from its representatives at the Marikana negotiations that an addendum to the wage settlement agreement was signed on Tuesday at Mooinooi in the North-West province. FEDUSA affiliated trade union, UASA The Union was a co-signatory to this agreement.

“This addendum to the original agreement sees a promotion of General Workers and Rock Drill Operators to higher job grades and salary bands, as well as a drilling allowance and a general across-the-board increase of 2% to all workers falling within the particular bargaining unit. In return, workers agreed to return to work tomorrow [20 September 2012],” said UASA Chief Operations Officer Leon Grobler.

“I just want to express our sincere appreciation for all the hard work done by the CCMA [Commission for Conciliation, Mediation and Arbitration] for their pivotal role in brokering this deal. We have shown the world and proven to ourselves that we can overcome even such tremendous labour-related challenges. It is through this dedication that the CCMA will remain a leader in dispute resolution world-wide. As UASA and FEDUSA we will certainly take hands with employers in future to prevent labour unrest through such special interventions,” added Grobler.

“We congratulate UASA and its sister unions involved in this dispute for the resolution of this sensitive matter which caught a lot of bad international press. We applaud the excellent mediatory role played by the CCMA in these difficult circumstances. While we note the fact that the platinum price fell 2% when the news of the settlement reached the world, we believe that the resolution of this dispute remains something to be applauded,” said FEDUSA General Secretary Dennis George.

FEDUSA has consistently called for greater centralised bargaining in specifically the platinum mining sector. Whereas gold and coal mining operations are already reaping the benefits of sector-wide collective agreements that foster greater labour peace and stability, the platinum mining sector still bargains at in-house level.

The Labour Relations Act provides for the regulation of centralised collective bargaining through bargaining councils. FEDUSA views it as essential to create a systematic process to deal with all employment relations matters in the mining and other sectors from basic labour issues, such as recognition, conditions of service and remuneration practice, to the more social aspects such as health, safety and living-out conditions in certain instances.

“While this agreement is applauded, it might very well create a precedent and spur further labour unrest at other mining operations. The only solution would be the establishment of a bargaining council to coordinate and control all wage demands at a central point. History has taught us that any other approach will lead to chaos and unnecessary suffering by all involved,” added George.