South Africa: Platinum pay-strike talks set to resume Tuesday

Talks to end a strike over pay that has crippled production at the world’s largest platinum mines will resume in South Africa tomorrow.

The Commission for Conciliation, Mediation and Arbitration (CCMA) will meet negotiators for Anglo American Platinum Ltd., Impala Platinum Holdings Ltd. (IMP) and Lonmin Plc (LMI), Nerine Kahn, a director at the mediator, said by phone today. Talks between the 3 companies and the Association of Mineworkers and Construction Union (AMCU) were suspended on February 5 without reaching a settlement to end the strike.

The AMCU has called out more than 70,000 workers on a strike that has cost employers about US$18 million a day since January 23, demanding that monthly wages for the lowest-paid underground workers be more than doubled to 12,500 rand (US$1,130).

South Africa accounts for about 70 percent of global output of the metal, used in jewelry and catalytic converters for vehicles.

Employers offered increases of as much as 9 percent for workers who are currently paid between 5,000 rand (US$452) and 6,000 rand (US$542) a month, excluding benefits. South Africa’s annual rate of inflation was 5.4 percent in December.

The CCMA last week proposed that employers raise pay to 12,500 rand (US$1,130) per month within 3 years, AMCU President Joseph Mathunjwa told reporters in Johannesburg on February 8.

“We were amazed that the employers rejected the CCMA recommendation and stuck to their 9 percent,” Mathunjwa said. “This made discussions on a possible settlement difficult and left AMCU with no option but to continue with strike action.”

Source: Bloomberg Businessweek