Platinum industry averts strike

Published Oct 24, 2016

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Johannesburg - The platinum industry last week averted a strike after producers reached an in “principle agreement” with the Association of Mineworkers and Construction Union (Amcu) over wages and other conditions of employment.

“What our members have been demanding has been secured from the companies,” Amcu president Joseph Mathunjwa said on Friday.

Amcu, the biggest union in the platinum industry, had demanded a 50 percent increase in monthly wages to R12 500 at the beginning of the talks.

The union declined to confirm whether members had revised their demand.

Asked if Amcu had an agreement in principle with the three producers, Mathunjwa responded: “Yes, subject to a mass meeting of general members to confirm it again.”

Mathunjwa said Amcu would disclose more details at a press briefing this week.

Members’ mandate

Amcu earlier said it had received its “members’ mandate”, which is union talk for their agreement, on wages at the trio of companies while Lonmin confirmed it had reached an agreement “in principle” with the union.

Mathunjwa previously said at the Joburg Indaba on mining earlier this month that wage talks with the mining companies were at a critical stage.

In 2012, Amcu lead a protracted strike for almost six months in the platinum industry to demand a R12 500 wage for the lowest paid workers.

The strike resulted in the deaths of 44 people, 41 of whom were striking mineworkers killed by police in what later became known as the Marikana massacre.

Anglo American Platinum’s (Amplats) chief executive, Chris Griffith, who also attended the Joburg Indaba, said Amplats was close to signing a deal with Amcu, which led a five-month wage strike in the platinum belt in 2014.

Amplats, Impala Platinum and Lonmin said that their negotiating teams would wait for the outcome of the mandate from Amcu members.

Impala Platinum spokesman Johan Theron confirmed that the company’s negotiation team had reached an “in principle” agreement with Amcu, which needed to be ratified and signed by members. “As far as Impala is concerned, we have an agreement, it needs to go to Amcu members for a mandate,” he said without giving details of the deal.

Theron said the agreement meant that the possibility of a crippling strike was off the table.

“It gives us a certainty for a period of time because we will not have a strike, and we can work together with Amcu to try make the company profitable,” Theron said.

The wage talks are different from those in 2013.

“In the 2013 negotiations, it was first time we negotiated with Amcu, and we have learnt from mistakes... The biggest challenge, however, still remains that metal prices are low, and all mines are battling in terms of prices,” Theron said.

Amplats’ spokeswoman, Mpumi Sithole, said the mining company continued to engage recognised unions and wage negotiations were progressing well. “This process is ongoing and we will comment in due course.”

Amcu overpowered the National Union of Mineworkers as the biggest union in the platinum belt.

Lonmin’s spokeswoman Wendy Tlou also confirmed the agreement. “They’ve committed to us that they’re going to be seeking a mandate from their members to rectify that agreement,” she said.

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