6th May 2014 07:43
LONDON (Alliance News) - Lonmin PLC Tuesday said the Association of Mineworkers and Construction Union plans to continue the ongoing platinum miners' strike in South Africa into its fifteenth week and noted that many employees have indicated their wish to return to work but fear for their personal safety.
The platinum sector in the country has been crippled by strikes at mines owned by Lonmin, Impala Platinum Holdings Ltd and Anglo American Platinum Ltd, a subsidiary of Anglo American PLC as the AMCU attempts to achieve significantly better wages.
Lonmin said it was advised of the decision at a meeting between the parties on Monday, at which the major producers attempted to develop a new offer to meet the union's demands.
Lonmin said the major platinum companies in the country will continue to directly approach employees, asking them to accept their settlement terms by May 8, and it noted that Anglo American Platinum has already seen some uptake in the direct approaches.
However, the company said the three major producers have received feedback from a large number of employees saying that, although they would like to return to work, they fear for their own personal safety if they do so.
Lonmin said security teams have documented dozens of incidents of threats of personal harm aimed at those contemplating a return to work.
The company added that the AMCU made no effort to suggest a solution to the strike during discussions, and it urged the union to accept responsibility for the threats and violence against employees.
In March, Lonmin said that negotiations over the action had been suspended after parties could not reach any kind of consensus following an offer by the major platinum producers to pay increases of between 7.5% and 10%.
For Lonmin employees at the time, the highest-paid workers would receive a 7.5% increase, while the lowest earners will receive an increase of 9.5%. For Anglo American and Implats employees, an increase of 7.5% for the highest-paid employees and an increase of 10% for the lowest earners has been proposed. The union in turn has been demanding increases of 30% or more.
The potential new terms discussed on Monday with the union were not disclosed by Lonmin.
At its annual general meeting during April, Anglo American said it remains in discussions to solve the situation but noted that in the future it plans to reduce the number of staff at its operations in the country by means of increased mechanisation.
According to Lonmin, to date the strike has cost employees some ZAR7.3 billion in lost income and the producers around ZAR16.4 billion in lost revenue.
Lonmin shares were down 1.4% to 288.60 pence, putting it in the top FTSE 250 fallers, while Anglo American shares were down 1.4% to 1,542.50 pence, putting it in the top five FTSE 100 fallers during early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Anglo AmericanLonmin