Share

Amcu prepares for mass vote on ending strike

Johannesburg - Talks aimed at ending a crippling three-month strike in the platinum sector resume on Wednesday, after the world's top producers and union Amcu spent Tuesday haggling over an offer tabled last week by the companies.

The strike is already the longest and most costly for South Africa's mines in living memory but in recent days there has been a renewed drive to break the deadlock after several weeks with no formal direct talks between the two sides.

"The meeting is on," an industry source told Reuters. The talks involve the Association of Mineworkers and Construction Union (Amcu) leadership and the chief executives of Anglo American Platinum [JSE:AMS], Impala Platinum [JSE:IMP] and Lonmin [JSE:LON].

No talks are scheduled after Wednesday.

About 70 000 members of the hardline Amcu downed tools 13 weeks ago at the three companies' mines, hitting 40% of global production of the metal used for emissions-capping catalytic converters in cars.

Initially demanding an immediate doubling of the basic wage - net salary before allowances such as housing - for entry-level workers to R12 500 a month, Amcu has since said it would accept annual increases that would reach this goal in three or even four years' time.

The producers' latest offer, made last Thursday, was for wage hikes of up to 10% and other increases which would take the minimum pay package - the basic wage including the allowances - to R12 500 a month by July 2017.

The companies are struggling to maintain margins in the face of steeply rising costs on one hand and depressed prices on the other for platinum and say they cannot afford any more.

Even if Amcu brings an offer to its members, the strike will not end until votes are taken at mass meetings in the platinum belt - a process which may take days.

"We have been told to prepare for a central mass meeting this week; it may take place on Saturday," Siphamandla Makhanya, an Amcu shop steward, told Reuters.

That may involve bringing thousands of miners back from their rural homes in places such as the Eastern Cap. Many have returned to their villages and families to sit the strike out.

Exacerbating the industry's woes is the muted price reaction to the stoppage despite its scale. Traders have bet there are adequate above-ground stocks and demand remains far from robust in major markets such as Europe, where diesel engines which require high platinum content in converters are favoured.

Spot platinum prices are about $1 400.00 an ounce, about 3.5% lower than just before the walk-out which began on January 23.

The sector's viability is also being shaken. Producers have lost R14.4bn to the strike so far, according to an industry website which constantly updates the tally

The talks are being facilitated by the department of labour but there has been little direct political intervention to resolve the dispute, even though it is a headache for President Jacob Zuma and the ruling ANC with a general election looming on May 7.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.1%
Rand - Pound
24.12
-0.0%
Rand - Euro
20.62
-0.2%
Rand - Aus dollar
12.40
+0.2%
Rand - Yen
0.13
+0.3%
Platinum
911.84
-1.3%
Palladium
1,018.92
-4.4%
Gold
2,161.91
+0.1%
Silver
25.15
+0.5%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,430
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders