• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 7 days Aramco Says No Plans To Shelve IPO
Alt Text

Busting The Lithium Bubble Myth

Lithium demand continues to grow…

Alt Text

World’s Biggest Miner Prepares For The EV Boom

The world’s top mining company…

Has South Africa Just Pushed The Restart Button For Mining?

South Africa mine

One of the most striking stories in mining the last decade has been the decline of South Africa. With that nation going from world’s top gold producer in 2006 all the way down to 7th place globally in 2016.

Part of that decline is due to geology — with deposits here being deep and expensive. But there’s another big reason for South Africa’s mining issues: labor problems that have plagued the gold and platinum sectors the last several years.

But a landmark court ruling this week may change that. With South Africa’s highest court severely curtailing the ability of mineworkers unions to stage crippling strikes.

South Africa’s Constitutional Court delivered a verdict Tuesday in a case brought by the Associated Mineworkers and Construction Union (AMCU). Where the union was appealing a 2014 Labor Court ruling that forced it to accept collective bargaining as part of wage negotiations.

The original case here stems to 2013. When AMCU’s fellow unions National Union of Mineworkers, UASA and Solidarity all accepted a pay deal with major gold mining companies — one which AMCU leaders disagreed with.

AMCU refused to accept the pay agreement. And were promptly taken to court by mining firms — who argued that under an “inclusive process” of bargaining, AMCU should be forced to accept the pay deal when a majority of other unions had signed off.

The Labor Court agreed, ruling that AMCU should be bound by the deal. Prompting AMCU reps to appeal to the Constitutional Court — leading up to this week’s decision, where Constitutional Court judges upheld the original decision in favor of mining companies. Related: Oil & Gas M&A Just Broke All Records

The result is that AMCU (and other unions) will no longer be able to singlehandedly go on “protected” strikes — where workers cannot be fired during labor action. Going forward, any such activist strikes would risk workers losing their jobs.

That’s almost certain to reduce the incidence of strikes across South Africa. Which would be welcome news for mining companies, bringing much more certainty to operations here.

The case isn’t completely finished, with AMCU lawyers saying they are examining a potential appeal of the Constitutional Court decision. Watch for next moves from the union, and for a potential improvement in the operational climate in South Africa if this week’s ruling does stand.

Here’s to getting to work.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News