| Wed 2 Aug 2006, 10:05 | | Kumba strike threatens to hit key clients |
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Kumba strike threatens to hit key clients
August 2, 2006
By Justin Brown
Johannesburg - The ongoing strike by 6 000 Kumba workers, which enters its fourth day today, has started affecting production at the company's iron ore and coal mines. And if it lasts a week, it could affect the company's ability to supply key customers.
A one-week strike would "most certainly" deplete the company's iron ore, coal and coking coal stockpiles, and in turn affect Mittal Steel South Africa and power utility Eskom, said Kumba spokesperson Trevor Arran.
The company employs 9 000 people. Kumba estimated the number of workers on strike at 3 400, while the unions put participation at 6 000.
The strike is being staged by three trade unions. The two major unions are Cosatu-affiliated National Union of Mineworkers (NUM), which represents predominantly black workers, and Solidarity, whose members are mainly white artisans. The smallest union is the Building, Allied, Mining and Construction Workers' Union (Bamcwu).
The industrial action affected the Sishen and Thabazimbi iron ore mines, the Grootegeluk and Tshikondeni coal mines, and the Douglasdale dolomite mine, said Arran.
The strike had a significant impact on production at the Sishen and Thabazimbi mines. The impact on the Grootegeluk mine, South Africa's largest coal mine, and the Tshikondeni coal mine had been limited, Arran said.
This was contradicted by Solidarity, which said in a statement yesterday that production had been brought to a halt at the Grootegeluk, Sishen and Thabazimbi mines, while operations at Leeuwpan, Glen Douglas and Tsikondeni had been severely affected.
NUM and Bamcwu started the strike on Sunday evening. Solidarity joined in on Monday.
The unions and Kumba management would meet today in Pretoria to try to break the deadlock, NUM's Kumba representative, Jackie Tshimanegape, said yesterday.
Last weekend Kumba increased its offer to 8 percent for low-category workers and 7 percentage for the high-category workers. The unions are demanding 10 percent and 9 percent, respectively. Unions said they expected Kumba to adjust its offer at today's meeting, while Arran said that the company had tabled its final revised offer last weekend.
Iron ore, coking coal and dolomite are key components in the production of steel, while coal is used by Eskom to fire its power stations.
According to Corporate Research Foundation surveys Kumba was the best company to work for in the local mining industry from 2003 to 2005.
