Question: Miner Sacks 17,000 Workers Over Pay Dispute Impala Platinum has sacked 17,000 South African miners at its Rustenburg mine because they took part in an illegal strike. The miners refused to have their union negotiate in the two-week pay dispute with the world's second-largest platinum producer. Mining provides a quarter of all jobs in Rustenburg.
a. Explain how it is possible that the mine workers were being paid less than the wage that would be paid in a competitive labour market.
b. What would be the effect of a minimum wage law in the market for miners?