Photo by: Duane Daw
JOHANNESBURG (miningweekly.com) – As talks between the platinum producers and the Association of Mineworkers and Construction Union (AMCU) stall, Anglo American Platinum (Amplats), Impala Platinum (Implats) and Lonmin will take the revised wage increase offers straight to the striking mineworkers.
AMCU, Lonmin, Implats and Amplats have been locked in renewed wage negotiations this week after the three platinum producers tabled a revised offer last week in an effort to end the crippling 13-week strike in the platinum sector.
But, no resolution to the wages and benefits impasse that had, to date, cost employees over R6.5-billion in lost income and the producers nearly R14.7-billion in lost revenue was in sight.
“The producers have a duty to provide the details of the settlement offer to our employees and will do so forthwith,” CEOs Chris Griffith, Terence Goodlace and Ben Magara said, urging AMCU to take the settlement offer to their members to “let them decide”.
The producers, in a statement issued on Thursday night, called on AMCU’s leadership to “consider the economic position” of the industry and the companies, and the “dire circumstances” of employees.
However, AMCU accused the producers of presenting false and exaggerated affordability claims in the different proposals it had been presented with.
“It is with dismay that our latest proposal at reaching a settlement was arrogantly rebuffed by the platinum cartel of Amplats, Impala and Lonmin,” AMCU responded in a statement, pointing to several different proposals that had examined ways of addressing the affordability concerns of the employers.
The trade union said it would “expose” the behavior of the producers at mass member meetings.
“We were extremely livid at these underhanded methods. It is difficult to predict how our members will react and what mandate they will give us faced with this situation,” AMCU said.
The new offer by the three mining companies would see remuneration, including basic wages and holiday, living-out and other allowances, for entry level underground employees rising to R12 500 a month by July 2017.
This equated to a 7.5% hike for the highest-paid employees at Lonmin, a 9.5% increase for Lonmin’s lowest earners and a 7.5% and 10% increase for the highest-paid and lowest-paid employees respectively at Amplats and Implats.
The cost to company, which included medical aid, pension, overtime and bonuses, for the lowest paid underground employees would be in excess of R17 500 a month by July 2017.
“This revised offer is one of the highest increases anywhere in the sector and the country,” the companies said.
Allowances will rise in line with inflation and would continue to be determined through an existing formula.
Back-pay – effective July 1, 2013, for Amplats and Implats employees and October 1, 2013, for Lonmin employees – was also included in the new offer.