ZAC calls for an amicable solution to wage strike
05 September 2024, Johannesburg
Press Release
ZAC calls for an amicable solution to wage strike
The management of Zululand Anthracite Colliery (ZAC) appeals to leaders of the National Union of Mine Workers (NUM) representing workers at the Emakhalathini-based mine in KwaZulu Natal to provide sound leadership to striking workers and consider a sustainable solution to the wage negotiation dispute.
Workers affiliated with NUM initiated a strike on 22 August 2024. The management of ZAC has offered an annual salary adjustment above the current CPIX. However, NUM negotiators tabled several demands on behalf of its members, including unaffordable salary increases and the payment of a guaranteed annual 13th cheque without commitment to improve productivity. In response, ZAC management offered to pay workers a 13th cheque based on the fulfilment of production targets to keep the mine operational.
The company has been transparent throughout the negotiation process, making it known to labour representatives that ZAC is currently facing challenges due to low production levels, high operational costs, and unfavourable market conditions such as declining anthracite prices. We believe that this transparency is crucial for a fair and open negotiation process.
To ensure business sustainability and given the mine’s low production levels, it is not possible to accommodate all workers’ demands unreservedly. The proposed solution of a production target-based 13th cheque could provide an opportunity for operations to continue as an interim solution to achieve economically viable mining, but it is dependent on the achievement of production targets and international demand and pricing improving soon. Combined, these could enable ZAC to continue adding value to the community of Emakhalathini, employees, and the South African economy.
The company has also noted with grave concern that since the strike started, there have been violent incidents, with busses transporting employees being shot at and electricity pylons being vandalized in the area. ZAC condemns all forms of violence and supports the constitutional right of workers to engage in peaceful demonstrations. The company is of the view that, with sound leadership from NUM, negotiations can be concluded amicably. Continued strike action exacerbates the operational difficulty and adversely impacts potential strategic decisions to continue production despite the adverse impacts already experienced and alluded to. The pressure on continued operations and the viability of the mine are real and imminent, irrespective of the strike action and pose a risk to the livelihoods of employees.
Since its acquisition in 2016, ZAC has been able to sustain over 1000 jobs, contribute towards community development through various initiatives, and provide procurement opportunities to surrounding local businesses even as production levels have continuously declined. ZAC is committed to continuing this positive trajectory would like to continue to engage in constructive discussions with employees and union representatives to reach a win-win solution.
Media contact:
Menar Corporate Communication Department
Siphiwe Tame
Tel: +27 11 783 7996
Email: pr@menar.com