[miningmx.com] – STRIKE tension continues to build in South Africa’s platinum sector after Northam Platinum revealed the extent of the disparity between its wage offer and National Union of Mineworkers (NUM) demands.
The union is demanding an average 61% increase on a cost-to-company basis and does not want to sign a multi-year agreement. In contrast, Northam has offered between 6% to 7.5% for the first year, and between 5.5% and 7% or inflation plus 1%, whichever is the higher in the second.
The discussions relate to Northam Platinum’s Zondereinde mine where a three week strike in the company’s last financial year (ended June 30) cost the business R192m in lost revenue.
In the same financial year, Northam Platinum also suffered the effects of a smelter break-down. It estimated on September 20 that a R55m smelter rebuild, capital and stay-in-business capital of R350m at Zondereinde, and a R530m required in project capital for its Booysendal project, would require it to raise R1bn from the market.
Northam Platinum GM, Danny Gonsalves, said in an announcement that he was “encouraged” by a decision to continue wage talks on October 29 and 30 as directed by the Council for Conciliation, Mediation and Arbitration (CCMA) which had earlier granted the NUM a certificate of non-resolution.
The Association of Mineworkers & Construction Union (AMCU) is this week expected to deliberate on whether it will proceed with strike action at Impala Platinum (Implats) after receiving its certificate of non-resolution from the CCMA last week.
“We’ve done our best to put a credible offer on the table,’ said Johan Theron, spokesperson for Implats. “Our priority now is to make sure the offer is communicated to the entire workforce,’ Theron told the news agency.
Implats offered a three year wage deal of an 8% increase in year 1 and 7% in years 2 and 3 while AMCU has stuck with its initial demands which would more than double existing wages.
Implats and Northam Platinum’s offers are similar to the final settlements achieved in South Africa’s gold sector except that the platinum firm’s are seeking a three-year deal.
Anglo American Platinum (Amplats) and AMCU are also deadlocked. Although AMCU’s strategy is uncertain, it could call for an across-the-board strike at mines where it has majority representation in the Rustenburg region. This would include Lonmin, also in the throes of wage negotiations.
One of the few causes for pause for the unions is the fact that the Christmas season is less than two months away. This means members may be reluctant to enter into strikes or prolonged ones at least.
