Amcu, platinum producers resume talks in Pretoria

Published Feb 5, 2014

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Wage talks between the Association of Mineworkers and Construction Union (Amcu) and the three leading platinum producers resumed in Pretoria yesterday in a bid to end the strike that has cost about R400 million a day.

The strike, which has hit about 40 percent of global supply, enters its 13th day today.

It has started to turn violent and police yesterday used rubber bullets and stun grenades to disperse about 3 000 striking miners at an Anglo American Platinum (Amplats) shaft.

Amcu members walked out at Amplats, Impala Platinum and Lonmin last month, demanding monthly wages be more than doubled.

“The strikes are currently costing the industry about R197 million a day,” said Roger Baxter, the chief operations officer at the Chamber of Mines.

“We estimate that the daily cost to the country is closer to R400m a day.”

A spokeswoman for the Commission for Conciliation, Mediation and Arbitration (CCMA) said the parties would meet for three days.

Government mediators said on Sunday that they had made a proposal to end the strike but did not give details.

Amplats chief executive Chris Griffith said on Monday that there might be progress by the end of this week as people “don’t want this to be a protracted strike”.

“I think it will allow the parties to engage more in an attempt to solve the strike,” Amcu president Joseph Mathunjwa said, referring to the talks. “We will be hearing from the company to see if they agree to the CCMA proposals.”

The National Union of Metalworkers of SA (Numsa), the largest labour group at Amplats’s refineries and smelters, had joined the strike on Monday, union organiser Steve Nhlapo said.

Numsa was demanding pay increases of 10 percent for higher-skilled employees and a raise of at least R2 500 monthly for the lowest-paid employees, Nhlapo said.

“We’re not part of the Pretoria talks. They [Amplats] will have to set up a meeting.”

The government stepped in to mediate to avoid damage to the struggling economy and to the political standing of President Jacob Zuma and the ANC ahead of the general elections, which will be held in about three months.

The producers, squeezed by soaring costs and suppressed platinum prices, say the wage demands are unaffordable and unrealistic.

Wildcat strikes in 2012 dented profit margins and output and another drawn-out strike would hurt the recovery. - Reuters

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