2014 South African platinum strike

On 15 November 2014 workers at South Africa's major platinum producers – Anglo American Platinum, Impala Platinum, and Lonmin – went on strike demanding that wages be immediately doubled. However, after five months of striking they settled for a more modest pay increase spread over three years. It was the longest and most expensive strike in South African history.

South Africa is home to 80% of the world's known platinum reserves, and produces about 70% of the world's supply. Platinum prices have been flat since 2009 or so, due to weak demand for catalytic converters, the primary use of platinum in industry. Meanwhile, other costs have risen, putting pressure on the mining industry. In 2013, roughly half of South Africa mining shafts operated at a net loss.

The market is controlled primarily by three companies - Anglo American Platinum (Amplats), Impala Platinum (Implats), and Lonmin. Amplats is the world's largest producer of platinum. Workers are mostly represented by either the Association of Mineworkers and Construction Union (AMCU) or the National Union of Mineworkers (NUM). Potential layoffs are a particularly sensitive issue in South Africa, as 25% of the country is unemployed.

On January 23, 2014, nearly 70,000 AMCU platinum workers in the Rustenburg area went on strike. The strike affected all three of South Africa's major platinum producers, with Lonmin hardest hit. Roughly 40% of the world's platinum production was shut down as a result.

AMCU demanded that minimum wage be increased from 5,000 rand ($US480) to 12,500 rand ($1,200) a month. The platinum companies called the demand unrealistic and for most of the strike refused to go beyond a 10% wage increase. One estimate suggested platinum would have to hit $2,405 an ounce for the industry to break even if the workers demands were met; platinum sold for roughly $1,430 an ounce when the strike started. By June, AMCU was arguing for steady wage increases over 4 years to meet the 12,500 rand goal by 2017 instead of immediately.

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