-- Lonmin signs peace accord with some unions
-- AMCU, worker representatives don't sign agreement
-- Lonmin says it will now meet with all parties to negotiate
wage demands
(Adds platinum market repercussions, union background.)
By Devon Maylie
JOHANNESBURG--Lonmin PLC (LMI.LN) said Thursday that it has
signed an agreement aimed at ending a near four-week platinum mine
strike with a promise to begin wage talks, but two key signatories
were missing, undermining a government-backed attempt to end a
violent stoppage that has left 44 people dead.
Several unions and Lonmin management signed a "peace accord,"
agreeing to end the violence and for the workers to return to the
Marikana mine by Monday. Lonmin said that once production has
resumed it would sit down with all parties to begin discussions on
workers' demands for salaries to be increased to 12,500 rand
($1,488) a month, nearly a tripling of what protesters say they
currently make.
However, workers' representatives and the Association of
Mineworkers and Construction Union--two key groups that have the
collective ear of the striking miners--didn't sign the accord. AMCU
declined to explain why it didn't sign the agreement and said it
would only speak Friday about the decision.
AMCU has campaigned as a new voice in labor discussions. It has
pitched itself as being independent from both political groups and
company management, which are criticisms levied by workers against
the country's main mine union, National Union of Mineworkers.
The strike at Marikana began Aug. 10, when 3,000 rock drillers
downed tools to demand higher wages. Over the following days
clashes between workers left 10 dead, culminating in a mass protest
when police fired into the crowd, killing 34. Workers at the mine
said this week they won't return until they have promises of a wage
rise.
Lonmin said it remained "hopeful" that AMCU and worker
representatives will sign the accord and join in the talks to
negotiate wages. The wage talks will be an "addendum" to the
current two-year wage agreement that ends in 2013.
"Lonmin and the other unions who are part of our bargaining
council have agreed to negotiate to address the wage demands...and
have invited AMCU and a delegation of workers' representatives to
take part...we simply ask that those negotiations happen in an
environment free of intimidation and violence," Lonmin acting chief
executive Simon Scott said.
Fewer than 2% of workers reported to Marikana Thursday, amid
reports of widespread intimidation, and production remains stopped
at the world's third-largest platinum producer.
The disturbances at Marikana have rocked the country and its
presidency, and many say the troubles herald a changing dynamic in
the labor movement that has wider implications for South
Africa.
Marikana is a "warning sign...perhaps a bomb that is beginning
to explode," said Zwelinzima Vavi, general secretary of the
country's largest union federation, Cosatu.
Indeed, strikes have spread to other platinum and gold
mines--Impala Platinum Holdings Ltd. (IMP.JO) said it received new
wage demands over and above an agreement struck following a strike
in February.
Unrest has been fanned by Julius Malema, the expelled youth
league leader of the ruling African National Congress who has
visited sites to address striking miners. He was due to speak to
protesters at Marikana Thursday, but delayed his visit due to
rain.
Such support has been causing concern. Minister for the
presidency, Collins Chabane, Wednesday said: "irresponsible and
inflammatory statements made by some in our society...does not
assist during this difficult period."
The strike has also affected the price of platinum, which has
rallied in recent weeks amid concerns that supply of the metal will
be constrained. Since the Lonmin strike began, the spot price of
platinum in Europe has surged around 14%, hitting a
four-and-a-half-month high at $1,587 an ounce Thursday.
Production cuts and strikes in South Africa may have led to a
loss of 380,000 ounces of platinum supply to the market this year,
said Deutsche Bank. While the bank continues to forecast a modest
market surplus this year, any oversupply could be wiped out if
operations remain shut, it said.
-Francesca Freeman in London contributed to this item
Write to Devon Maylie at devon.maylie@dowjones.com