By Devon Maylie
LONDON--Impala Platinum Holdings Ltd. (IMP.JO) said Thursday it
has agreed to a 4.8% average wage increase following a demand
submitted to the company at its largest mine in Rustenburg, South
Africa, earlier this month.
The Impala move comes after a strike at fellow platinum miner
Lonmin PLC (LMI.LN) last month spiraled into a violent uprising by
workers that left 46 people dead due to clashes between workers and
police. Operations were halted for more than a month.
The strike at Lonmin subsequently spread to some of the
country's biggest platinum and gold mines, including this week's
shutdown of all operations at South Africa's biggest gold producer,
AngloGold Ashanti (ANG.JO), after workers downed tools to demand
higher wages. Lonmin increased worker wages between 11% and 22% to
end that strike, triggering copycat strikes at other mines by
workers hoping to get a similar deal.
"This seems to go down well with employees," a spokesman for
Impala said of its wage increase, which will take effect Oct.
1.
Impala itself is still recovering from a February strike that
shut its mine for six weeks, caused a loss of 120,000 troy ounces
of platinum and left three people dead.
Impala agreed to a wage increase to end that strike in March and
said Thursday it agreed to another one that on average will
increase its labor costs by 4.8%.
"The overriding imperative for all stakeholders should be to
ensure peace, stability and order and in so doing create an
environment for safe production. The wage adjustment supports this
imperative," Impala Chief Executive Terence Goodlace said in a
statement.
Meanwhile, Anglo American Platinum Ltd. (AMS.JO, AGPPY) said it
has started disciplinary hearings for about 80% of its workers in
Rustenburg, where four mines are still shut, that could lead to
their dismissal.
Write to Devon Maylie at devon.maylie@dowjones.com
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