JOHANNESBURG (miningweekly.com) – Talks between the negotiating teams of the Association of Mineworkers and Construction Union (AMCU) and platinum producers Anglo American Platinum, Impala Platinum and Lonmin, under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA), have been adjourned, as the parties have been unable to reach a settlement.

The negotiations would continue under the facilitation of the CCMA at a date yet to be announced.

In a joint statement released late on Wednesday, the producers said, while an expeditious resolution would be in the best interests of all parties, it remained imperative that the companies continued to pursue a settlement that was affordable, achievable and sustainable.

“Acceding to AMCU’s [wage] demands [of R2 500 a month] – which have not shifted since negotiations began – is simply not feasible and would effectively mean a doubling of the industry’s wage bill,” the majors noted.

The revised offer made by the platinum producers on January 29, and which remained on the table, saw them offering 9% for A-level workers, 8.5% for B-level workers and 7.5% for C-level workers in year one, while, in year two, A-level workers would receive 8%, B-level workers would receive 7.5% and C-level workers would receive a 7% increase.

In year three, A- and B-level workers would receive a 7.5% increase, while C-level workers would receive a 7% wage boost.

“Prior to the start of the strike and before granting the wage increases currently under negotiation, some 45% of platinum operations in South Africa failed to break even. Prolonged strike action will result in more losses and a further restructuring of the platinum sector.

“To date, our three companies have lost revenue of around R2-billion in the current strike, [while] employees have lost wages and benefits of around R900-million. It is estimated that the cost to the country has been around R4-billion,” said the platinum producers.

The companies added that they had a responsibility to their shareholders, communities, the country and, most of all, their own employees.

“We understand that employees have real needs, but we need to agree on an increase that is fair to employees, on the one hand, and protects the companies  and employee jobs on the other.

“Finally, negotiation can only take place if both parties actively engage with one another and seek to make compromises,” the statement concluded.