Business
South Africa: Work stoppage expected in Platinum sector in response to job cuts
“Downsizing the workforce is unfortunate but necessary for the survival of the business.”
The AMCU has emerged as the dominant union on the platinum belt over the older more established National Union of Mineworkers (NUM).
South African platinum producers are currently in pay negotiations with unions, which if deadlocked, may lead to more work stopagges. The AMCU wants pay raises of more than 100 percent.
Huge wage hikes or work stoppages could hurt Amplats’ results as it strives to recover from last year, when low platinum prices and a wave of work stoppages pushed it into the red.
Gold producers sealed a pay rise agreement with NUM that will see salary increases of up to 8 percent, but AMCU rejected the offer and is still in talks with the companies.
Coal producers are also in wage talks. Companies made a final wage offer to unions on Friday, proposing pay increases of between 7 and 11 percent.
NUM said it was still consulting members on the offer. AMCU is not involved in the coal wage talks.
