Fresh offer in platinum strike

18 April 2014 - 14:24 By Sapa
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MARATHON STRIKE: Amcu president Joseph Mathunjwa addresses striking Amplats mineworkers.
MARATHON STRIKE: Amcu president Joseph Mathunjwa addresses striking Amplats mineworkers.
Image: MOELETSI MABE

Amplats, Implats and Lonmin have presented the Association of Mineworkers and Construction Union with a new offer in a bid to end the strike in the platinum sector, a spokeswoman for the producers said.

Charmane Russell said that the offer presented by Anglo American Platinum (Amplats) on Thursday night represented the offer made by all three platinum companies.

Amplats and Impala Platinum Holdings Limited (Implats) said in a statement that the proposal would see entry level underground employees' minimum cash remuneration, comprising basic wages and holiday, living out and other allowances, rise to R12,500 per month, or R150,000 per annum by July 2017.

Russell said that cash remuneration excluded medical and retirement benefits, and any bonuses and indicated that Lonmin would release a similar statement on the offer on Tuesday.

Amcu was not immediately available for comment on the proposal.

The 12 week strike had so far resulted in R6,047 million in employees' lost earnings and R13,607m in companies' revenue lost, according to the Chamber of Mines's website on Friday.

Implats and Amplats urged the union to "seriously consider" the offer.

The companies said that to achieve the offer, "the cash remuneration for the employees would rise between 7.5 percent and 10 percent across the various bands of employees, with relevant allowances rising in line with inflation," the companies said.

"It is important to note that by implementing these increases, the cost-to-company for the lowest paid underground employee would be in excess of R17,500 per month (R210,000 per annum) by July 2017.

The cost to company included cash remuneration, medical, retirement, overtime and bonus provisions.

Company-level joint task teams would tackle longer term issues including labour migrancy and living conditions

Amcu members at Lonmin, Amplats and Implats downed tools on January 23 to push for a basic monthly salary of R12,500. The union previously rejected a wage increase of up to nine percent.

The companies, in turn, rejected Amcu's revised demand that the R12,500 could be achieved over four years.

Amplats and Implats said on Thursday that the new offer was tabled after engagements with Amcu and its president Joseph Mathunjwa.

"Labour costs account for approximately 55 percent to 60 percent of annual production costs and unsustainable increases in these costs will be catastrophic to the future viability of the company.

The offer included the payment of back pay related to the annual increase.

"This takes effect from 1 July 2013 and the principle of ‘no work, no pay' will apply for the duration of the strike."

Amplats said it had lost around 225,373 ounces of platinum in the 12-week strike, equivalent to revenue of around R5.8 billion.

Implats said it lost a around 180,000 ounces platinum, equivalent to revenue of around R4.0 billion, while employees have forfeited

wages of some R1.4 billion because of the strike.

Talks in the platinum sector with Amcu are scheduled for Tuesday next week.

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