5th Jun 2014 06:27
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, have asked for time to consider a new pay proposal from the Association of Mineworkers and Construction Union, as major strikes continue to cripple the platinum sector in the country.
The Department of Mineral Resources for South Africa announced late on Wednesday that it presented a new proposal from the union to chief executives at the major platinum mining companies during talks, and the parties have now requested time to consider the proposal, with the meetings resuming on Thursday.
It did not provide any details of the new proposal from the AMCU.
The meeting on Wednesday followed a meeting between the Mineral Resources Minister Advocate Ngoako Ramatlhodi and the AMCU on Tuesday, as part of a renewed drive to solve the crisis over wages in the highly prospective South African platinum belt.
?I am encouraged by the progress on this matter, and the cooperation of all parties involved,? Ramatlhodi said after meeting the union on Tuesday.
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.
By Tom McIvor; [email protected]; @TomMcIvor1
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