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Amcu plans Union Buildings march

Johannesburg - The Association of Mineworkers and Construction Union (Amcu) will stage a march in Pretoria on Thursday, dimming prospects for a swift resolution to a five-week strike at the world's top three platinum producers.

The announcement came as talks continued between Amcu and mining companies Anglo Platinum (Amplats) [JSE:AMS], Impala Platinum (Implats) [JSE:IMP] and Lonmin [JSE:LON] under the auspices of a government mediator.

The strike has affected more than 40% of global production of platinum, used for making emissions-capping catalytic converters in automobiles. South Africa accounts for about 70% of global output.

The union and the mining companies remain poles apart on the issue of wages, with Amcu demanding a more than doubling of basic entry-level pay to R12 500 ($1 200) a month under the populist battle cry of a "living wage".

Memorandum

The union said in a statement that its members would march to the seat of South Africa's government, the Union Buildings, to present a "memorandum" to President Jacob Zuma, several cabinet ministers, and the "platinum bosses".

The strike, the latest in a series to hit the mining sector, is an unwanted distraction for the ANC ahead of general elections in May.

Industry sources say Amcu, at mass meetings last week, indicated it planned to bus in thousands of its members for the march, which suggests they expect to still be on strike.

Amcu did not disclose the nature of the memorandum but said it would hold a news briefing about the march on Tuesday.

Wage increases

The mining companies have said they can ill afford the wage increases being demanded given the backdrop of depressed metals prices and rising costs and have offered pay hikes of up to 9%, well above the current inflation rate of 5.8%.

Since the strike began, the companies say they have collectively lost more than R6.6bn ($615m) in revenue, according to a chamber of mines' website which constantly updates the losses.

About 10 000 ounces of production is being lost per day which would mean 305 000 ounces as of Monday, based on 30.5 working days having been lost since the strike began.

Broken ribs and arms

Violence has also marred the stoppage.

In the latest reported incident, the National Union of Mineworkers (NUM), which is not part of the industrial action, said one of its members had been assaulted by striking miners as he tried to go to work on Monday morning at Amplats' Union Mine.

"William Nkoebele who is a winch operator at Union Mine suffered serious head injuries, broken ribs and broken arms," NUM said in a statement.

An Amplats' spokesperson confirmed that a contract employee had been assaulted on Monday on his way to work at the mine but could not say what his union affiliation was.

Amcu emerged as the top union on the platinum belt after poaching tens of thousands of NUM members in a vicious turf war that killed dozens of people in 2012 and triggered sovereign credit downgrades for the economy.

New union?

In another development, local media reported that a new union has formed on the platinum belt, the Workers Association Union (WAU), which is opposed to the strike and claims around 8 000 members.

Implats' spokesperson Johan Theron said the company was aware of the new union but its membership numbers remained unchanged.

Striking Amcu members would have missed their monthly pay cheques last week and so the stoppage may be testing rank and file resolve.

According to the companies, employees have lost close to R3bn in earnings to the strike so far.


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