South Africa’s miners_ Difficult questions _ The Economist

The Marikana mining strike started on the 10th of August, miners of the platinum mine owned by Lonmin were infuriated over the unfair treatment of miners who worked under extremely harsh conditions, to which the miners demanded a pay-rise tripling the amount they were originally paid. The initial monthly wage is reported to be approximately 4100 South African Rand, about 48% higher than the median South African monthly wage. It is Lonmin’s decision whether it’s suitable to increase the pay cheques of their miners, in order to match up with the expectations of the unions, provide a positive PR opportunity and increase the living standards of their workers.

On the other hand, as previously stated the median South African monthly wage is a lot lower than what the miners are originally paid. Moreover, the minimum wage of South Africa ranges from 1067 to 1167 Rands per month. Lonmin can easily find other workers to replace the miners. Especially since the current unemployment rate in South Africa is around 24.9%, there is no doubt that if Lomin wants to maintain its profit without paying the extra wages, they can simply dismiss the miners on strike.