[miningmx.com] – SOUTH Africa’s platinum producers confirmed they had offered entry level workers a R1,000 per month increase for the first two years in a wage deal it hopes will meet with union support on Friday (June 13).
Impala Platinum (Implats) said in a statement on its website on Thursday evening that A and B band employees would then receive R950 for years three to five but that items such as the living out allowance would stay at 2013 levels.
In addition, other benefits such as retirement and medical aid will move in line with CPI while middle management would receive an 8% increase in year one falling to a 7.5% adjustment in subsequent years. It is envisaged that senior management would not receive an increase in the foreseeable future.
The effect of the proposal – which the Association of Mineworkers and Construction Union (AMCU) has taken to members – is that it front loads the basic pay element of the overall package such that the aggregate increase is 18% over the five-year period for entry level workers.
However, the overall guaranteed package amounts to 13% which when added to the 7.5% and 0% afforded to middle and senior management comes in below the 10% total increase to the wage bill that producers said was critical to avoid restructuring.
The increase in the basic offer is also in line with AMCU demands that platinum firms restrain from offering percentage type increases annually and guarantee an absolute take-home sum for each year of the wage deal.
“The proposal seeks to achieve a profitable and sustainable future for the company and for the benefit of all stakeholders and to afford mineworkers the best possible increases under the present financial circumstances,” Implats said in a statement.
Backpay, to July 2013, will be paid within seven working days after workers had returned to work, but the principle of “no work no pay’ applied for those employees that have been on strike, Implats said.
The companies expect to receive feedback from AMCU on Friday, 13 June,” it said. “Further details will be made available once feedback is received from AMCU.”
