South Africa’s Association of Mineworkers and Construction Union (Amcu) said on Monday it plans to launch an indefinite strike on Wednesday at Sibanye Gold to demand higher wages.
Amcu members had voted in October to strike in the gold sector, including at Sibanye, but had agreed not to down tools immediately.

Amcu spokesman Manzini Zungu said on Monday the union had given a 48-hour strike notice to Sibanye.

“We will go on strike for as long as our members are saying ‘stay on a strike’,” he said.
“Sibanye is on a shopping spree, acquiring other assets but their workers are paid very low wages.”

Sibanye, which in 2015 bought Anglo American Platinum‘s labour-intensive Rustenburg mine and Aquarius Platinum, signed an agreement with three smaller unions and extended the wage deal to Amcu members.

Sibanye spokesman James Wellsted said the company had received the strike notice.
“They have a right to strike but we have the right to limit the potential damage to our business,” he said. “We have robust strike plans and will be implementing,” he said, without elaborating how Sibanye would cope with the work stoppage.

Eoin Treacy's view

South African mines have been subject to headline grabbing labour disputes for much of the last five years and this is an issue that has the potential to become problematic for shareholders unless handled extremely delicately. 

Sibanye has benefitted both from its commitment to increase dividends, the weakness of the Rand and renewed interest in gold. The share surged higher from early January but the pace of the advance has slowed and potential for a reversion towards the mean has increased. Considering how overbought the share is, volatility is likely to increase.