End in Sight for S Africa Platinum Wage Talks - AMCU President
October 06 2016 - 9:02AM
Dow Jones News
By Alexandra Wexler
JOHANNESBURG--Wage negotiations between major South African
platinum producers and the largest union in the industry should be
wrapped up in about a week, according to the head of the union.
"I believe we won't have a strike," said Joseph Mathunjwa,
president of the Association of Mineworkers and Construction Union,
on the sidelines of an industry conference in Johannesburg.
The union is asking for a 12,500 rand ($907.5) minimum wage from
about ZAR9,000 currently and a 15% raise for skilled workers.
In 2014, a 5-month strike led by AMCU crippled the platinum
industry in South Africa, the world's No. 1 producer of the metal,
hitting output and bottom lines.
The Chamber of Mines of South Africa recently estimated that
about 80% of platinum operations in the country are unprofitable.
South Africa's top three producers have restructured, cut jobs, and
raised capital in order to stay afloat. They have trimmed hundreds
of thousands of unprofitable ounces of production and sold
high-cost mines.
Shares in Anglo American Platinum and Impala Platinum are up 2%
and 0.4%, respectively, while Lonmin is 2% down.
Write to Alexandra Wexler at alexandra.wexler@wsj.com
(END) Dow Jones Newswires
October 06, 2016 08:47 ET (12:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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