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Johannesburg - The National Union of Mineworkers (NUM) has given junior producer Northam Platinum [JSE:NHM] a 48-hour notice of its intention to strike after wage talks broke down, a union negotiator said on Thursday.
A government mediator this week granted NUM permission to call for a strike at Northam and management had said it would meet with the union to try and avert industrial action.
"We have given them the notice and from today they have 48 hours to come back with another offer or we will strike," NUM negotiator Ecliss Tantsi told Reuters.
NUM is demanding that the company raise wages by between 22%and 43%, depending on the level of employees and raise housing allowances by 69%.
Northam had offered to increases of between 6% and 7.5% for the first year and 5.5% and 7% for the second year.
The company said it would release a statement shortly.
Northam's bigger rivals, Anglo Platinum [JSE:AMS], Impala Platinum [JSE:IMP] and Lonmin [JSE:LON] are also currently in wage talks with unions.
The Association of Mineworkers and Construction Union (Amcu) said on Monday its members voted to strike at Impala Platinum after wage talks failed, but it would not immediately give the company a 48-hour notice.
Amcu has also declared a wage dispute with Amplats and a government mediator will try resolve the dispute.
Looming strikes on the platinum belt have had little impact on the spot price of the previous metal because demand remains relatively weak while there is excess supply in the industry's pipeline.
But they would inflict more damage on the local economy, which has been hit by a spate of strikes this year in other sectors including the auto industry, and pressure the volatile rand currency.
Northam's share price fell over 2% on the news.
A government mediator this week granted NUM permission to call for a strike at Northam and management had said it would meet with the union to try and avert industrial action.
"We have given them the notice and from today they have 48 hours to come back with another offer or we will strike," NUM negotiator Ecliss Tantsi told Reuters.
NUM is demanding that the company raise wages by between 22%and 43%, depending on the level of employees and raise housing allowances by 69%.
Northam had offered to increases of between 6% and 7.5% for the first year and 5.5% and 7% for the second year.
The company said it would release a statement shortly.
Northam's bigger rivals, Anglo Platinum [JSE:AMS], Impala Platinum [JSE:IMP] and Lonmin [JSE:LON] are also currently in wage talks with unions.
The Association of Mineworkers and Construction Union (Amcu) said on Monday its members voted to strike at Impala Platinum after wage talks failed, but it would not immediately give the company a 48-hour notice.
Amcu has also declared a wage dispute with Amplats and a government mediator will try resolve the dispute.
Looming strikes on the platinum belt have had little impact on the spot price of the previous metal because demand remains relatively weak while there is excess supply in the industry's pipeline.
But they would inflict more damage on the local economy, which has been hit by a spate of strikes this year in other sectors including the auto industry, and pressure the volatile rand currency.
Northam's share price fell over 2% on the news.
