5th Jun 2014 09:33
LONDON (Alliance News) - The Association of Mineworkers and Construction Union has rejected a government-brokered proposal for an ZAR800 monthly increase in order to end strikes which have crippled South Africa's platinum mining industry, Business Day reported Thursday.
The union met with the Department of Mineral Resources for South Africa on Tuesday and discussed the possibility of an ZAR800 monthly increase to employees. However, according to the South African newspaper, the union rejected the offer and said its stance remains that of a ZAR12,500 basic wage.
AMCU President Joseph Mathunjwa told the Department for Mineral Resources on Tuesday that the proposal was the same as an offer which it rejected three months ago, according the Business Day.
On Wednesday, the Mineral Resources Minister Advocate Ngoako Ramatlhodi met with the major platinum miners Lonmin PLC, Impala Platinum Holdings Ltd and Anglo American Platinum Ltd, a subsidiary of Anglo American PLC to discuss a further proposal from the AMCU, which the producers are currently mulling over.
It did not provide any details of the new proposal from the AMCU.
The AMCU and the platinum mining companies are expected to separately meet the Department of Mineral Resources again on Thursday to discuss the ongoing strike action.
South Africa's economy contracted in the first quarter as the strikes, which have now gone on for over four months, hit production significantly. The companies collectively say the strike has cost them at least ZAR21 billion and workers have missed out on ZAR9 billion in wages.
In late May, the parties all sat down for three-day talks on the crisis amid reports of thousands of people queueing for food aid in South Africa after foregoing their wages, but an agreement was not reached.
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 prior to the latest union talks.
The news comes as the AMCU and miners in the country await the results of a court application for a protected strike in the gold sector, which would bring three of South Africa?s largest gold mines into the continuing platinum strike.
The Chamber of Mines interdicted the AMCU from striking at gold mines in January and the matter will be heard in court Thursday.
Lonmin shares were down 3.4% to 244.70 pence, making it the second biggest FTSE 250 faller, while Anglo American shares were down 0.5% to 1,454.00 pence.
http://www.bdlive.co.za/national/labour/2014/06/05/amcu-rejects-new-pay-increase-offer
By Tom McIvor; [email protected]; @TomMcIvor1
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