[miningmx.com] – ANGLO American Platinum (Amplats) CEO, Chris Griffith, warned the Association of Mineworkers & Construction Union (AMCU) that a proposed strike at the group’s mines would undermine its year-long restructuring programme, and result in further job losses.
“Our restructuring process aimed at restoring profitability to all our operations has
only recently got under way, and we were expecting to start seeing some of the early benefits in the coming months,” he said in an announcement to the JSE.
“A strike will completely undermine the progress we have made in the last few months and also increase the possibility of further job losses,” he said, adding that the group “simply cannot afford the increases the union is demanding”.
AMCU has demanded a R12,500 per month salary for entry-level workers and has railed against the private sector for exploiting workers.
The last time AMCU called a strike at Amplats was in October when, after 11 days of downtime, the union succeeded in the platinum firm altering its restructuring plans for a third time.
In terms of the agreement at the time, Amplats agreed to pay voluntary separation packages to 3,300 employees previously earmarked for retrenchment.
The agreement also saw Amplats offer 328 job opportunities currently occupied by contractors to permanent employees. The outcome was that Amplats agreed that no employees will be retrenched while AMCU emerged a stronger union.
Of the 3,300 that would have been issued voluntary separation packages, some 1,250 employees would be retained for a six-month period in order to perform reclamation functions at the mines affected by the restructuring: Khuseleka 2 shaft, and the Khomanani 1 and 2 shafts.
These 1,250 employees may be offered jobs that could become available in the event of contract labour ending or vacancies created by means of natural attrition, Amplats said at the time.
Griffiths’ comments today come as Amplats acknowledged AMCU’s notification for a legal strike from January 23 (Thursday). This was despite negotiations that started last year. Amplats was also in negotiations with the National Union of Metalworkers of SA.
It’s expected that AMCU will seek to out-do the wage agreement signed between the National Union of Mineworkers and the United Association of South Africa (UASA) which agreed to a 7.5% and 8.5% increase in the first year and an 8% increase in the second.
Last week, the NUM agreed to an increase of up to 9.5% for workers of different levels at Northam Platinum’s Zondereinde mine.
Amplats said it would continue to work for a resolution but added that the “no work-no pay rule’ would apply to all those who choose to strike.
Strike notices were also served on Impala Platinum and Lonmin which combined with Anglo Platinum is equal to 75% of South African platinum production and 50% of global production.
According to Investec Securities, a total of 80,000 workers could be involved in the strikes if they proceed at all three platinum producers.
