Quarry Southern Africa March 2018 | Page 10

BUSINESS CURBING PROTRACTED AND VIOLENT STRIKES IN 2018 Johan Olivier At a time where unemployment rates are escalating, the need to ensure growth and stability of the mining industry, including its labour relations, has never been more acute. Protracted and / or violent strikes are likely to be a disincentive to potential mining investors. I “The Chamber of Mines recently estimated that the mining industry was responsible for creating approximately 450 000 direct jobs in South Africa.” 8 _ QUARRY SA | MARCH/APRIL 2018 n one of its most recent surveys, the Chamber of Mines estimated that the mining industry was responsible for creating approximately 450 000 direct jobs in South Africa. The most recently published Fraser Institutes research also reported that South Africa has labour regulations, employment agreements and labour militancy or work disruptions which could act as a relatively high deterrent to investment. One of the key contributors to this figure is likely to be strike action. Although the right to strike is a sign of a healthy democracy and serves to balance the power of employees and firms through collective bargaining, protracted and / or violent strikes are likely to be a disincentive to potential mining investors. Research published by the Mandela Initiative suggests that although the frequency of strikes has decreased substantially in South Africa since 2000, it appears that when they do occur, they do more intensely. This trend has played itself out clearly in the mining industry. In a bid to address this issue in mining, the National Economic Development and Labour Council (NEDLAC) negotiations of 2016 resulted in the creation of the NEDLAC Accord on collective bargaining and industrial action (the Accord) as well as the Code of Good Practice: collective bargaining, industrial action and picketing. The parties to the Accord are the government (including state institutions like the CCMA and Bargaining Councils), employers’ organisations and trade union federations and their members. In its broadest terms, these parties have undertaken to ensure that, should violence, intimidation or the threat of harm occur in strikes, they will do everything in their power to ensure that the strike is solved as promptly as possible. The Code details the practical application of the Accord. It provides guidance on collective bargaining and dispute resolution, among others. In terms of their effect, anyone interpreting the Labour Relations Act (LRA) must take the code into account as well. As things currently stand, however, the trade union federation, SAFTU (of which NUMSA is a member) and the trade union AMCU have not signed the Accord. As such, the full benefit