23rd May 2014 10:33
LONDON (Alliance News) - Lonmin PLC, in partnership with South African platinum miners Impala Platinum Holdings Ltd and Anglo American Platinum Ltd, a subsidiary of Anglo American PLC, Friday said talks with the Association of Mineworkers and Construction Union are continuing over major strikes which have crippled the platinum sector in the country.
The parties said that the three-day talks, which began on Wednesday, are continuing under the auspices of the South African Labour Court in order to mediate a resolution to the ongoing wage strike, which has now continued for four months.
Lonmin said that all of the parties involved have embraced the new talks and they share a common goal to help resolve the dispute.
On Tuesday, Labour Court Judge Hilary Rabkin-Naicker persuaded the union and platinum mining companies to enter into talks after originally being scheduled to hear calls by the AMCU to stop the companies from contacting employees directly by SMS messages regarding wage offers.
Amid reports of thousands of people are queueing for food aid in South Africa after workers forfeited four months of wages as part of the strike action, the platinum mining companies recently argued that many have told them they want to return to work.
In April, the companies put on the table a revised settlement, stating that entry-level underground employees would be paid ZAR12,500 per month from July 2017, through a pay rise of 7.5% to 9.5% per year. However, the revised offer was rejected by the AMCU.
The companies then decided to offer employees the new deal directly, and said earlier in May that they are hoping that this process will mean they can see a return to work later in May and production has been provisionally rescheduled to start in June.
In April, Lonmin said the strike had cost employees some ZAR6.4 million in lost wages and the producers around ZAR14.5 billion in lost revenue.
Lonmin shares were up 3.1% to 255.70 pence putting it in the top three FTSE 250 risers while Anglo American shares were up 0.9% to 1,551.50 pence, putting it in the top ten FTSE 100 risers.
By Tom McIvor; [email protected]; @TomMcIvor1
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