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Amcu threatens to intensify pay strike

Johannesburg - There seemed to be no end in sight for South Africa's platinum sector strike, now in its fifth week, as union workers hardened their opposition to a wage offer on Thursday.

Members of the Association of Mineworkers and Construction Union (Amcu) at Lonmin [JSE:LON], Anglo Platinum (Amplats) [JSE:AMS], and Impala Platinum (Implats) [JSE:IMP] went on strike on January 23, demanding a R12 500 basic monthly salary for miners.

Hours after top platinum mines issued a take-it-or-leave-it ultimatum, Amcu said it would achieve its demand for a minimum wage "however necessary".

"We are encouraged by the determination of our members to confront capital head on and demand what is just and equitable," the union said in a statement.

Companies say the union's demands could spell unaffordable wage increases of up to 150%. They are instead offering a seven to nine percent pay increase in each of the next three years.

On Wednesday, companies appeared to be unyielding in their wage offer, hinting at possible job loses if the strike continues.

The companies also accused Amcu of negotiating in bad faith, saying "it was not possible to negotiate if only one party ever moves and the other party maintains its position."

They claim they have lost a collective $400m (R4.4bn) since the strike began.

Amcu responded on Thursday by threatening to step up its protests and demanding chief executives be present during talks.

"In the coming weeks we will be engaging in marches to mining houses and government departments to deliver... our demands.

"We will coordinate campaigns locally and to the international community where we will unravel the extent of exploitation in South Africa at the hands of these multi-national companies."

Tens of thousands of Amcu members downed tools on January 23, in a strike that the union says was a culmination of the 2012 wage dispute, which led to the massacre of workers by police in August.

This year's strike action has not led to the levels of violence seen in 2012, but incidents have been reported in the Rustenburg mining belt.

Last week, Amplats said it was suing a trade union for property damages and losses worth R591m ($54m, €40m) suffered during stoppages.

"The litigation from Amplats is a last ditch attempt to declare the protected strike action by Amcu as illegal," said Amcu.

Amcu official Jimmy Gama said the union will on Thursday meet with the mediators to discuss their position on the current offer, after consulting with the workers.

"Today we will meet with the CCMA to table our revised position on the latest wage offer," said Gama.

Gama could not give more details about the meeting.


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