[miningmx.com] – SOUTH Africa’s platinum sector must be watching Northam Platinum’s exertions with the National Union of Mineworkers (NUM) with fear and trepidation as a third improved offer, aimed at ending the four-day strike at its Zondereinde mine, was rejected by the union.
The fact Northam is a single asset company makes the prospect of a prolonged strike all the more troubling for the company’s shareholders. In addition to operating Zondereinde, Northam is building the Booysendal platinum project.
Northam Platinum said today the NUM stood firm on wage demands that the platinum firm draw a distinction between core and non-core employees and that any pact would only be for a year instead of the multi-year deal Northam desires.
The NUM has asked non-core employees receive a 22% to 42% basic wage increase equal to R2,000. Core employees must receive a R2,100 basic wage increase equal to 23% to 43% at the lowest level, it said.
Northam’s latest offer is for a two-year increase ranging from 8% to 9% inclusive of the 0.5% service increment for year one and two. It previously put a 7% to 8% basic wage increase to the NUM.
Northam also proposed an 8% increase on the current living out allowance of R2,200 for both years against which NUM is standing firm on a 69% increase in the living out equal to R3,718 monthly compared to R2,000 a month now.
Northam said it remained open to talks to resolve the impasse but there was no escaping the exasperation in its statement that: “This is the third time the company has improved its offer; to date, the NUM has not moved on its demands”.
Northam launched a R1bn refinancing plan, including a R600m rights offer, in August part of which was to plug the damage caused by a previous three-week strike at Zondereinde mine which cost Northam some R192m.
