9th Jun 2014 16:21
LONDON (Alliance News) - Lonmin PLC Monday said that the talks set up by the Minister of Mineral Resources to solve the ongoing strikes that are crippling the platinum mining industry in the country and weighing on its economic growth dissolved without an outcome.
Miners Lonmin, Impala Platinum Holdings Ltd and Anglo American Platinum Ltd, a subsidiary of Anglo American PLC met Monday with representatives of the Association of Mineworkers and Construction Union, on the last day for talks set up by Minister of Mineral Resources Ngoako Ramatlhodi to solve the wage strikes in the country, now in a 21st week.
An Inter-Governmental Technical Task Team, with representatives from the government departments of Mineral Resources, Labour and National Treasury, was set up by Ramatlhodi on May 28 in an effort to resolve the issue.
The strikes have cost mining companies over ZAR21.7 billion, according to the companies.
"While the producers remain committed to a negotiated settlement, they will now review further options available to them," Lonmin said in a statement.
The Department of Mineral Resources stepped in after Ramatlhodi became Minister of Mineral Resources on May 26.
Meetings were continuing on a daily basis until Friday, and a proposal was offered to both groups last week. However, the Department said that talks on Monday would be the last which take part with all groups if a deal is not agreed.
"Monday 9th June will be our last meeting with all parties. I am making a humble appeal to all the parties involved to assist us to move this process forward," Ramatlhodi said in a statement on Saturday. "We cannot continue to meet indefinitely. At some point, we must find an implementable solution."
"It is in the interests of the workers, the companies, and the South African economy that we find a lasting solution to this challenge, and I am confident that all the parties involved will not fail our country," Ramatlhodi added.
Business Day reported last Thursday that the AMCU had rejected a government-brokered proposal for an ZAR800 monthly wage increase in order to end strikes. 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 to Business Day.
Last Wednesday, the Mineral Resources minister met with the platinum miners to discuss a further proposal from the AMCU, which the producers were mulling. At the time, It did not provide any details of the new proposal from the AMCU.
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. Miners are believed to have missed out on over ZAR9 billion in wages.
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.
Lonmin shares closed 0.3% lower Monday at 250.8 pence, while Anglo American shares closed 0.4% higher at 1,471.5 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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