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Vast gulf emerges in Anglo Platinum wage talks
Allan Seccombe
Posted: Wed, 16 May 2007

[miningmx.com] -- SOUTH AFRICAN trade unions are demanding wage increases from Anglo Platinum of between 15% and 18%, at least triple what the company offered at the opening of the latest round of wage talks.

In the first meeting of the two sides, Anglo Platinum offered workers a five percent wage increase as well as a once-off payment of 30% of their salaries.

The unions rejected the offer out of hand, calling it “disappointing” because it was below the current inflation rate of 5.5%.
a mood of deep disappointment
“After management tabled that offer there was a mood of deep disappointment from the unions’ side. From there the meeting just deteriorated,” said Reint Dykema, a spokesman for the Solidarity trade union.

Officials from the National Union of Mineworkers (NUM), the largest miners’ union, were not immediately available for comment.

NUM has demanded a 15% wage increase as well as minimum wages of R4,200/month ($603) for underground workers and R3,800 ($545) for those on the surface.

Solidarity is demanding an 18% wage increase as well as increases in housing allowance, increased company contribution to medical aid.

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“We can justify our wage hike demand in two ways. There is a big shortage of miners and artisans. A lot are leaving for other projects and something must be put in place to retain these people,” Dykema said.

“Secondly, we are not keeping up with the cost of living, cost of houses and so on. It is going very well with Anglo Platinum but it doesn’t appear to want to look after its workers,” he said.

The next meeting between Anglo Platinum and labour is scheduled for 28 May.

Wage settlements in 2006 ranged between five percent and 7.5%.

Anglo Platinum declined to discuss its offer or its reaction to the unions’ demands.

“This process is only just beginning. We have a very long way to go still and it would be premature to make any comment at this stage,” Anglo Platinum spokesman Simon Tebele said.

Anglo Platinum shares closed 0.7% higher at R1,170 each.

Unlike the gold sector, platinum producers negotiate individually with the unions. The gold sector begins its two-year wage talks in June.

The NUM has been particularly active this year, calling workers out on strike at gold and platinum mines over issues not related to wages.