Strike costs Northam R200m in lost revenue
JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum on Wednesday said revenue losses at the company’s Zondereinde mine have grown to about R200-million, owing to a strike by members of the National Union of Mineworkers (NUM) that was entering its fourteenth day.
On average, Zondereinde produced 1 000 oz/d of platinum-group metals.
The NUM had declined the company’s two-year offer of wage increases of 9% for core and 8% for noncore employees, as well as an 8% increase in the living-out allowance, and said that its members had resolved to continue with the strike and stick with their demands.
The union was demanding a R2 000 increase in basic wages for noncore employees, which was equivalent to a 22% to 42% increase, and an increase of R2 100 in basic wages for core employees, which was equivalent to an increase of between 23% and 43%.
Further, the union was also demanding that the living-out allowance be increased by 69% from R2 200 to R3 718 monthly, staggered in two tranches over six months.
The NUM also did not want to agree to a multiyear agreement.
Northam said employees had lost R30-million in wages to date, adding that the company could not accede to the NUM’s demands, which would significantly raise the cost base of the business and jeopardise the sustainability of the company and jobs, in the longer term.
The NUM would march to Northam’s head office, in Johannesburg, on Tuesday next week, and was calling for Northam management to be replaced.
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