Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

South Africa's AMCU union to set wage demands for platinum sector

Published 16/05/2016, 13:17
South Africa's AMCU union to set wage demands for platinum sector

JOHANNESBURG (Reuters) - Members of South Africa's Association of Mineworkers and Construction Union (AMCU) will on Thursday begin meetings to decide on pay demands for platinum companies as wage talks loom, a spokesman said on Monday.Manzini Zungu said the union's branches would put forward their wage demands which would be consolidated at national level ahead of talks with Anglo American (LON:AAL) Platinum (Amplats), Impala Platinum and Lonmin (LON:LMI).

The existing two-year wage deal between the companies and unions expires at the end of next month.

Platinum companies are still reeling from the effects of a record five-month strike in 2014 led by AMCU - the biggest union in the sector - when it sought a more than doubling in wages to 12,500 rand (556.59 pound). In the end, the workers settled for raises of around 20 percent annually.

The lengthy strike, pay increases and low commodity prices forced firms to cut thousands of jobs, sell mines and delay projects. Amplats sold off its Rustenberg mines to Sibanye Gold to focus more on its mechanised mines.

The mining firms have said that unaffordable increases could trigger job losses which are a thorny issue in South Africa, which holds local polls in August and where unemployment reached its highest level on record in the first quarter.

Lonmin's CEO Ben Magara said he did not anticipate further job cuts for now, but added conditions may change.

Zungu however said companies could not use the threat of job cuts to intimidate workers from asking for salary increases.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"In wage talks, we are going to negotiate for our members fully aware of the situation and knowing that the threat of job cuts is a lifetime threat that doesn't go away," Zungu said.

"Our members are just looking for a living wage so that they can own houses and take kids to university."

The National Union of Mineworkers, the second biggest union in the sector, said it had not yet started on the process to set wage demands for its members.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.