Housing subsidy key to ending strike: Govt.

[miningmx.com] – A WAGE pact between South Africa’s platinum producers and the Association of Mineworkers & Construction Union (AMCU) partly turned on how quickly companies could convert housing allowances into basic pay.

Mines minister, Ngoako Ramatlhodi, said at a briefing today in Pretoria that the question of the housing subsidy was one of the few sticking points in the way of ending the 20-week strike in the sector in which nearly R22bn has been lost in platinum revenue.

He said he was convinced the parties had moved from their original positions in which the AMCU is demanding a basic R12,500 per month salary for entry level workers, equal to an increase of 30% plus while platinum firms are offering a 9% wage increase.

“As of Friday (June 6), the parties had agreed on the final demands,” said Ramatlhodi. “But the outstanding issues were two: the question of in how many years would that [R12,500 per month] be achieved and secondly, the question of leaving out allowances,” he said.

In terms of one proposal, the South African government would accelerate delivery of houses to mine employees allowing platinum companies to add the housing allowance to the basic package.

“I am convinced they have both moved from original position,” said Ramatlhodi who added that he has stepped back from negotiations because two weeks was enough time for an intervention.

“We have given them the key, they haven’t taken the key yet. I’m sure they will continue to discuss this. When I left, they were looking at the next step,” he said.

Ramatlhodi added there was no deadlock breaking provision in South African labour law that could be used to force parties to enter into mandatory arbitration. Currently, the parties choose when to enter arbitration. “There is a deficiency in South African law and that is we don’t have deadlock breaking laws. Our law is silent on that.

“If I had that strategy at my disposal I’m sure I could have unleashed it. Anyway, this is for the future,” he said.

Johan Theron, a spokesman for Impala Platinum, said that the companies had suggested using the difference between the company’s offer and AMCU’s demand for a housing plan. “Our offer would be a R600m increase in year one whereas AMCU’s demand is equal to a R1bn increase.

“We are saying let’s ring-fence the R400m difference, have it matched by government, for building houses,” he said. Putting the housing allowance into the basic was a bit of “smoke and mirrors”, said Theron who added that there was a likelihood the extra basic would not be spent on housing anyway.