NUM claims revisions can help wage deal

[miningmx.com] – THE National Union of Mineworkers (NUM) called on Northam Platinum to bring an end to the strike at its Zondereinde mine saying revisions to its opening offer should be accepted immediately.

“For the record we have revised our demands and believe that they are more reasonable, achievable and justifiable,” said NUM in a statement today. The revisions were made in December and ask for an increase of R1,900 and R1,800 per month for core and non-core workers respectively, and a R3,600 monthly living out allowance.

These demands compare to previous demands of a R2,100 and R2,000 per month lift in salaries for core and non-core employees and a R3,718 living-out allowance.

In effect, NUM has lowered its overall salary increase to about 16% from between 22% to 43% (for lowest paid workers) previously. Northam had criticised the NUM for failing to reduce any of its demands after it lifted its offer from 4% initially to 8.5% to 9.5% at the last meeting between the sides.

At this last meeting, just before the summer holiday break in South Africa, Northam said that for an 8.5% to 9.5% wage increase, the NUM must accept a three-year wage deal. The NUM, however, had previously been opposed to any multi-year agreement, but it said it would agree to a two-year deal.

The union and the company are to meet again next Monday (January 13), but the NUM said Northam should settle before then, the union said. The Zondereinde mine has lost about R500m in revenue whilst workers have yielded R100m in salaries.

“It’s unlikely that Northam will move beyond that (8.5% to 9.5%). There’s a kind of gentleman’s agreement in the industry that double-digit increases will not be tolerated,” said an industry source.

NUM’s progress in wage talks may influence wage negotiations between the Association of Mineworkers & Construction Union (AMCU) and South Africa’s three largest platinum producers: Lonmin, Anglo American Platinum (Amplats) and Impala Platinum (Implats).

The union, which is in fierce competition with the NUM for members, has non-resolution certificates over each of these producers raising the prospect of strikes at some 75% of South African platinum production. If NUM secures a good deal from Northam it will heap pressure on the AMCU to do the same.