Wage deal in the mix as AMCU mulls response

[miningmx.com] – JOSEPH Mathunjwa, president of the Association of Mineworkers & Construction Union (AMCU), is reportedly set to frustrate attempts to end a 21-week strike over wages in the platinum industry.

According to Eyewitness News (EWN), an online and broadcast news service, members of AMCU at Lonmin’s Wonderkop had turned down a wage proposal.

However, the response at mass meetings at the premises of Impala Platinum (Implats) and Anglo American Platinum (Amplats) was more positive.

The upshot is there’s no certainty on whether the platinum firms have a deal or not with notice of AMCU’s decision not expected until later on Friday (13 June) and further meetings not expected until after the weekend.

Union objections included the fact that employers had kept the living out allowance unchanged even though they upped the basic monthly pay increase to R1,000 for the first two years of the five-year deal, said EWN.

Mathunjwa is also to ask for the reinstatement of 200 essential services employees who were retrenched last month for failing to present for work, said EWN.

Earlier, Miningmx cited Implats spokesman, Johan Theron, as saying that the company was “quietly optimistic” the offer would be accepted after AMCU said it would seek a new mandate from members.

Implats said in a statement on its website on Thursday evening that A and B band employees would receive R950 extra a month for years three to five of the pay deal, but that items such as the living out allowance would stay at 2013 levels.

In addition, other benefits such as retirement and medical aid will move in line with CPI while middle management would receive an 8% increase in year one falling to a 7.5% adjustment in subsequent years. It is envisaged that senior management would not receive an increase in the foreseeable future.

The effect of the proposal is that it front loads the basic pay element of the overall package such that the aggregate increase is 18% over the five-year period for entry level workers.

However, the overall guaranteed package amounts to 13% which when added to the 7.5% and 0% afforded to middle and senior management comes in below the 10% total increase to the wage bill that producers said was critical to avoid restructuring.

The increase in the basic offer is also in line with AMCU demands that platinum firms restrain from offering percentage type increases annually and guarantee an absolute take-home sum for each year of the wage deal.

“The proposal seeks to achieve a profitable and sustainable future for the company and for the benefit of all stakeholders and to afford mineworkers the best possible increases under the present financial circumstances,” Implats said in a statement.

Backpay, to July 2013, will be paid within seven working days after workers had returned to work, but the principle of “no work no pay’ applied for those employees that have been on strike, Implats said.