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» New wage talks will be tough - Ralph Havenstein, Anglo Pt CEO
» Modikwa Pt resumes talks to end strike - Simon Tebele
» NUM bigwig crosses floor

» JSE:IMPALA PLATINUM HOLDINGS LIMITED:
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Union flexes muscles ahead of SA wage talks
Allan Seccombe
Posted: Fri, 16 Feb 2007

[miningmx.com] -- IMPALA Platinum has lost a day's production at its operations on Friday because of an unprotected strike as the National Union of Mineworkers (NUM) appears to be sending a signal to the sector it is not to be trifled with in upcoming wage talks.

"We've lost a day's production because of the stoppage today," said Impala spokesman Bob Gilmour.

The world's second largest platinum producer is hopeful that the nightshift will report for duty and that operations will return to normal from Monday, he said.
negotiations tough this year
"A day's production can be worked back in and it can be made up," Gilmour said.

Impala said it has agreed to address the concerns raised by the largest mineworkers' union about medical services after a meeting on Friday. There will be a second meeting on Monday.

"Management and the NUM have appealed to employees to resume work as soon as possible," Impala said in a statement issued on Johannesburg bourse's news service.

South African gold and platinum companies are gearing up for wage talks with the unions for fresh two-year agreements that should be struck around June.

The National Union of Mineworkers is holding internal meetings to set its agenda for the upcoming talks, union spokesman Lesiba Seshoka said.

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The run up in gold and platinum prices over the past year is likely to mean that the unions will demand above inflation increases. Labour makes up 50% of the costs of South Africa's deep-level, labour intensive mines. Consumer price inflation increased 5.8% in December.

"We see a lot of pressure (from the unions) and there's a lot of volatility in terms of union leadership, which will make negotiations tough this year," Anglo Platinum CEO Ralph Havenstein said on the World at Six week-nightly business show on Radio 702.

Results released by mining companies in recent weeks have shown sharp cost increases because of above-inflation increases allocated to the second year of the last wage agreement, and rising input costs of steel, water and electricity.

Meanwhile, workers illegally downed tools at DRDGOLD's marginal Blyvooruitzicht gold mine to demand the company implement job grading agreements and payouts for leave.

DRDGOLD said in a statement the mine, which produces 576 oz of gold a day, could be economically damaged if the strike continued. The strike, which started from the nightshift on 13 February, has already resulted in reduced production as the mine turns to stockpiled ore and surface material.

"The illegal work stoppage is believed to be related to worker concerns regarding the calculation of leave pay and to a demand by rock drill operators for a 40% wage increase," DRDGOLD said in a statement.

Deon Baqwana, the NUM spokesman at the Blyvoor mine, said workers would return to work on Sunday night. "This is not over," he said. The union will talk to management again on Monday.

In the longest running dispute in the mining sector so far this year, a strike at Modikwa platinum mine is in its fourth week. The strike is costing the mine close to R6m a day in lost revenue. The strike started on 26 January.

Workers are protesting against continuous operations, which sees work over seven days a week.

"Management and the union are in mediation," said Anglo Platinum spokesman Simon Tabele. "We don't have any idea when this strike is going to end."

The mine, jointly owned by Anglo Platinum and African Rainbow Minerals, needs to be operated as hard as possible to unlock the value, Anglo Platinum has said. Once the mine has bedded down it will be possible to revisit the continuous operations programme.