Platinum sector wage deal signed and strike averted

After four months of negotiations, the platinum sector has managed to avert a strike as three major producers inked a wage deal with the majority union. BusinessLIVE reports that the Association of Mineworkers and Construction Union (Amcu) signed the deal with platinum miners Anglo American Platinum (Amplats), Impala Platinum (Implats) and Sibanye-Stillwater. The settlement has been upheld by the parties as fair and in the medium term is expected to bring stability to a sector that has been a hotspot since tensions culminated in the Marikana massacre in August 2012 when police killed 34 protesters. Amcu has been negotiating with the country’s biggest platinum miners since July when its initial demand was as high as a 48% increase for workers. Arnold van Graan, mining analyst at Nedbank Corporate & Investment Banking, said in the report that any deal that avoided a strike was a good deal, as there were no winners in a strike. Peter Major, director of mining at Mergence Corporate Solutions, said he thought the settlement was reached relatively quickly and that the agreements were generous of the mining companies.

Full BusinessLIVE report

Amplats, Implats and Sibanye-Stillwater signed the three-year wage agreement with unions, Amcu, the National Union of Mineworkers (NUM) and UASA. Amplats said in a Mining Weekly report that its wage agreement included an increase of R1 000 a month in basic pay, or 5.5%, whichever is greatest, for each year of the agreement. Implats, meanwhile, said its operating subsidiaries, Rustenburg operations and Marula Platinum, had agreed to a wage settlement that assured employees of increases to all major components of remuneration, including basic salaries, living-out and home ownership allowances and medical aid and pension fund contributions. The report says Amcu described the conclusion of the ‘progressive wage agreements’ as a ‘monumental victory’ for the union and its members. Amcu president Joseph Mathunja said wage-led growth was the only way to grow the economy.

Full Mining Weekly report

Mathunjwa said in Business Report the agreement meant that the basic salary of the lowest-paid worker would be hiked by R1 000. He said the hike would amount to R5.7bn over three years for 160 000 employees in the platinum industry. Sibanye-Stillwater CEO Neal Froneman said the wage agreement had taken into account the longer-term sustainability of its operations. ‘It is encouraging that the negotiations were conducted in a constructive manner without any disruption,’ said Froneman. Amplats CEO Chris Griffith said the group would ensure the sustainability of the business. Implats’ Lee-Ann Samuel said the wage deal was both fair and sustainable and that it took into account the inflationary pressures of employees.

Full report in Business Report