AMCU foils deal with R1bn in extra demands

[miningmx.com] – WORKERS have flooded back to the platinum belt in anticipation of restarting work after a 21-week strike, but they may be kept idle a while longer after the Association of Mineworkers & Construction Union (AMCU) loaded up last week’s in-principle wage agreement with an additional R1bn in total demands.

Anglo American Platinum (Amplats), Impala Platinum (Implats) and Lonmin confirmed in a joint announcement today that while AMCU had provided them with letters showing it had been given a mandate to settle on behalf of its members, it had made additional demands.

“The letters raise various procedural issues, such as the time frame of proposed agreements, which the companies are willing to discuss with the union leadership,” the companies said.

“Regrettably, however, the letters also contain new and additional demands which, if granted, would mean huge additional costs -of around R1bn in aggregate – to the companies, beyond the increases contained in the “in principle’ agreements,” they said.

“The companies simply cannot afford the additional wage demands. Engagement with AMCU on their latest demands is ongoing. The goal remains a sustainable solution beneficial to all stakeholders,” they said, adding that there had been “a return to the platinum belt region of large numbers of employees”. Lost earnings for workers have now broken through R10bn.

Miningmx, citing an industry source, said earlier today that the demands extended beyond the companies’ own mandate.

Implats announced on June 12 that it had offered A and B band ‘entry level’ workers a R1,000 per month increase for the first two years and R950 for years three to five in a five year deal.

The living out allowance would stay at 2013 levels while other benefits, such as retirement and medical aid, will move in line with CPI.