Northam working again

[miningmx] — NORTHAM Platinum recommenced mining operations on Tuesday after
reaching an agreement to resolve an unprotected strike which has cost the miner
16,000 ounces of platinum and related metals output and R192m in revenue.

A company spokesperson confirmed drilling operations restarted at its Zondereinde
mine.

Around 580 rock drill operators had been on a work stoppage since April 2, following a
dispute where workers had demanded a 38% increase in their production bonuses.

“A memorandum of understanding signed between the two parties provides for the
payment of “return to work’ compensation comprising a once off ex gratia payment
equivalent to 50% of their basic wages for the duration of the strike period and R2
000,’ Northam said in a statement.

The National Union of Mineworkers (NUM) represents 77% of Northam’s total
workforce of 9,000. The next round of wage negotiations is expected to take place in
the next month or so.

Lesiba Seshoka, a spokesman for NUM, said the next round of wage talks with other
platinum companies is likely to start in July or August.

At the moment, unions and companies have been talking about the possibility of a
collective bargaining platform for the negotiation of wages and working conditions
across all of South Africa’s platinum mines.

Seshoka said the NUM has been campaigning for a collective bargaining platform,
similar to the arrangement for the gold and coal company wage negotiations, since
2005. He said a few years ago companies would not agree on it, preferring to
negotiate with unions unilaterally.

“Companies always had moved sideways [on the issue of introducing collective
bargaining]. Now they seem to be prepared having seen what the lack of a collective
bargaining platform led to last year,’ he said.

NUM has lost ground to other unions when it comes to representing platinum workers,
in particular the Association of Mineworkers and Construction Union (AMCU). It has
attracted many miners who were former NUM members.

Seshoka said, though, NUM still represented more than 30% of the workforce at
Lonmin and 48% at Anglo Platinum. The number was lower at Impala Platinum.

AMCU was reported earlier this month as saying it would not back collective
bargaining.

AMCU’s national treasurer, Jimmy Gama told Dow Jones news wire that
“members of the AMCU want the union bosses to set wages on a company by
company basis’.

Seshoka, asked if he thought the reason for the emerging union shying away from a
collective platform was because it was scared of losing its newly gained power, said:
“I don’t think binding yourself to collective bargaining is giving up power. It is just
saying that wage negotiations and levels will be standardised.’