Strike averted at Implats

Johannesburg - The National Union of Mine Workers (NUM) and Impala Platinum Holdings [JSE:IMP] reached a deal on wages and housing allowances on Saturday, ending threats of strike action, a union official said.

The NUM was demanding a 10% pay rise across the board and R1 700 in housing allowance for its members.

Implats, the world's second-largest platinum producer, offered a 7.5% pay rise for workers in the high income bracket and 8% for those in the lower category, which the union accepted.

"We have just signed an agreement. There will be no strike," Eddie Majadibodu, the NUM's chief negotiator at Impala Platinum, told Reuters.

The union and Implats also reached a deal for a R1 700 home ownership allowance and R1 200 living-out allowance for workers who do not live in the company's hostels.

But the parties could not agree on pension contributions, and the union will take the matter to arbitration, said Majadibodu.

Implats management and the NUM have been in talks for more than three weeks to end the deadlock and avoid a strike.

Africa's biggest economy has been hit by a wave of strikes and strike threats in both the private and public sector, which have led to above-inflation settlements and stoked fears that the cost of living will rise.

South Africa's inflation rate slowed to 4.2% in June.

Implats had said it expected lower full-year profit due to an increase in share-based expenses.