By Alexis Flynn
LONDON--Talks aimed at ending three months of strikes across
South Africa's platinum mining heartland have hit an impasse, after
the world's top three producers of the precious metal said Thursday
they would bypass the union representing tens of thousands of
miners and offer a new wage deal directly to their employees.
"Unfortunately, no resolution has yet been achieved in resolving
the three-month strike relating to wages and benefits," Anglo
American Platinum Ltd., Impala Platinum Holdings Ltd. and Lonmin
PLC said in a joint statement. "The producers have a duty to
provide the details of the settlement offer to our employees and
will do so forthwith."
Representatives of the Association of Mineworkers and
Construction Union weren't immediately available.
While Thursday's move doesn't bring an end to negotiations with
the powerful AMCA, it could further damage already fraught
relations between management and strike leaders.
However, it also risks adding fresh volatility to a combustible
situation, potentially pitting workers who are prepared to return
to work against those who want to maintain the picket.
"Our fear, as a government, is that the chances of violence are
more increased," said Thembinkosi Mkalipi, a chief director at the
Department of Labour, who has been involved in the talks.
"There are two things at play. How hungry are the miners? Their
stomachs will have to determine how loyal they are to AMCU. And how
scared are they?" said Mr. Mkalipi.
The companies say the strikes have collectively cost more than a
billion dollars in lost production, while the continuing labor
turmoil risks widening South Africa's yawning current-account
deficit and further harming growth.
All three firms last week united on the eve of the Easter
weekend to present above-inflation wage increases of as much as 10%
to 80,000 mine workers who have been on strike since January, but
AMCU said that offer falls short of their original demand for a
basic monthly wage of 12,000 South African rand (about $1,140).
Though bosses and union leaders resumed talks on Tuesday, the
two sides still remain at odds.
In an interview last week, AMCU's general secretary, Jeffrey
Mphahlele, expressed skepticism at the deal being offered.
"It's not an improved offer," Mr. Mphahlele said. "It's like a
rubber band. You can stretch it, but when you let go, it returns to
the same shape."
South Africa's platinum mines--and its economy--have been
damaged by waves of strikes in recent years, while prices of the
metal, used mainly to build emissions-curbing catalytic converters
in cars, have risen more than 6% since the beginning of the
year.
Deep-set tensions, some linked to grievances from South Africa's
apartheid past, lie at the heart of the dispute between Mr.
Mphahlele's union and the mining companies.
While the union continues to press for wages that are closer to
those paid for similar work in Australia or Canada, the mining
industry has balked, saying the demands are unaffordable and
couldn't be sustained.
Though the country ordinarily accounts for about 80% of the
world's platinum reserves and is its biggest supplier, production
of the precious metal has nearly halved as a result of the latest
strike.
Anglo American Platinum has warned that if the strikes continue
it would consider closing more of its marginal mines.
Earlier on Thursday, Anglo American Chief Executive Mark
Cutifani said resolving the strikes was "the most pressing issue
facing the company right now."
"We want to see our people back at work," said Mr. Cutifani.
Write to Alexis Flynn at alexis.flynn@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
