JOHANNESBURG (miningweekly.com) – The Association of Mineworkers and Construction Union (AMCU) has warned of a possible strike at Sibanye-Stillwater’s platinum mining operations in South Africa amid a “disappointing” wage increase offer.

The union is engaging mining companies on wage increases for workers on the platinum belt.

During a media briefing on Tuesday, AMCU president Joseph Mathunjwa said the union was making “slow and steady” progress with a number of mining houses.

Following the union’s Platinum Collective Bargaining Conference on June 4, the union has increased its minimum salary aim to R17 000 a month for the lowest earning workers.

AMCU’s adjusted demands include a basic salary increase for category A and B employees of R1 500 a year over a three-year agreement, and for category C and D1 of 10% a year over the three years.

Moreover, the union has agreed with members to focus on benefits and some broader issues, including mine health and safety.

Mathunjwa said Sibanye was insistent on parallel engagement for its Rustenburg Platinum Mine (RPM) operations and the operations it recently acquired when it bought out Lonmin.

“As AMCU, we don’t agree with this approach,” he said.

At Sibanye RPM, the current offer for a basic salary increase to category A and B employees is R700 for years one and two and R800 for year three.

According to the union, Sibanye is offering 4.3% for category C and D1 employees for each of the three years. The company has made no other offers on benefits and conditions of employment.

Mathunjwa further described Sibanye’s wage increase offer of R300 for year one, R350 for year two and R400 for year three at the Lonmin operations as a “slap in the face” and an “insult” to workers.

He said AMCU believed Sibanye was trying to provoke it into embarking on a strike.

The union and Sibanye had faced off over a months-long strike by AMCU members at the company’s gold operations earlier this year. The union was eventually forced by the courts to end its strike.

Moreover, AMCU on Tuesday said Sibanye had offered the category C and D workers at the Lonmin operations a “shockingly low” below inflation increase of 3.3%.

Mathunjwa argued that the mining houses could not “cry poverty”. He pointed out that platinum group metal (PGM) prices have risen and cited statistics that showed that Sibanye’s Lonmin operations have returned to profitability with an improved net cash position, while Anglo American Platinum (Amplats) and Impala Platinum (Implats) had posted notable results.

He stressed that the income inequality between mineworkers and executives was a huge problem.

The employers involved in the wage negotiations are Implats (including the Impala and Marula operations), Amplats (including the Tumela, Dishaba, Central Services, Mortimer Smelter, RBMR and Mototolo operations) and Sibanye Stillwater South Africa Platinum (including the Rustenburg Platinum Mines and Lonmin operations).

Amplats is offering category A and B employees a R1 000 increase in basic salary for year one and an R800 increase for each of years two and three, as well as a 5.5% increase in the basic salary of category C and D employees for each of the three years.

It is also offering a 10% increase in the rock drill operator’s allowance and a consumer price index- (CPI-) related increase to medical aid for each year of the three-year agreement.

Meanwhile, Implats is offering increases of R800 a year for each of the three years for category A and B employees and increases of 5% a year for category C employees.

It has also offered to increase living out allowances by R100.

In terms of medical aid contributions, Implats is sticking to CPI increases and Mathunjwa noted that Implats had shown a willingness to meet the union’s demand for five months’ paid maternity leave.

Meanwhile, AMCU will gather on August 16 for the seventh commemoration of the Marikana Massacre, with the gathering to be held at the hill where 34 mineworkers were killed by police in 2012 following a protracted, and often violent, strike by mineworkers.