JOHANNESBURG – Members of a union representing more than half the worker’s at Impala Platinum Holdings' refinery in South Africa started a strike Tuesday after talks over pay and benefits broke down.
About 500 people who are members of the National Union of Mineworkers didn’t report for duty after five rounds of talks with the world’s second-biggest platinum producer broke down, the organization said in an e-mailed statement.
Impala Refining Services, about 35 km (22 miles) east of Johannesburg, employs about 900 people, NUM deputy branch secretary Mpho Mere said by phone. He wasn’t able to say whether operations had been affected by the stoppage. Impala spokesman Johan Theron didn’t immediately reply to a call and e-mail seeking comment.
“We declared a dispute because we’re still far, far apart,” he said. In some wage categories at the refinery, the NUM is seeking a 9.5% increase, with the company offering 7.5%, Mere said. South Africa’s inflation rate was 5.9% in August.
Impala also is not close to meeting demands for higher housing, shift and standby allowances, and wants employees to use its in-house medical-insurance plan, which the union says undermines freedom of choice.
The refinery raised production from mine-to-market operations by 11% to 628 600 oz in the year ended June 30 from 12 months earlier, while refined output from third-party purchases and tolls climbed 32% to 182 900 oz, it said in a September 1 statement.
South Africa is the world’s biggest producer of platinum. Impala declined 4.1% to 65.24 rand by 11:43 a.m. in Johannesburg. The stock has more than doubled in 2016.