Anglo American Platinum settlement offer to AMCU

Offer to take minimum underground cash remuneration to R12,500 per month by July 2017

Anglo American Platinum Limited (Anglo American Platinum), advise that the Company has tabled a strike settlement offer in respect of wages and benefits to employees who are members of the Association of Mineworkers and Construction Union (AMCU). This follows recent engagements between the CEOs of the companies and the President of AMCU, Mr Joseph Mathunjwa, and AMCU's national leadership.

The proposed increases will ensure that the minimum cash remuneration (comprising basic wages and holiday, living out and other allowances) for entry level underground employees will rise to R12,500 per month (R150,000 per annum) by July 2017. To achieve this, the cash remuneration for the employees would rise between 7.5% and 10% across the various bands of employees, with relevant allowances rising in line with inflation.

It is important to note that by implementing these increases by July 2017, the cost to company for the lowest paid underground employee would be in excess of R 17,500 per month (R210,000 per annum).  The cost to company includes cash remuneration, medical, retirement, overtime and bonus provisions.  Longer term issues such as labour migrancy and living conditions will be handled through company-level joint task teams.

The Company notes that it can ill afford the revised settlement offer, which represents an increase from the 7.5% to 9% CCMA offer, and the 7.5% to 8,5% offer made prior to the commencement of the strike. These concessions have been made by the Company in good faith through various attempts over the last two months to end this industrial action. Labour costs account for approximately 55% to 60% of annual production costs and unsustainable increases in these costs will be catastrophic to the future viability of the industry.

This settlement offer has been made in the interests of bringing an end to the debilitating 12-week strike that has crippled the platinum sector and has brought untold hardship to employees, their families, communities and the companies.

The offer currently includes the payment of back-pay related to the annual increase.  This takes effect from 1 July 2013 for Anglo American Platinum employees. The principle of ‘no work, no pay' applies for the duration of the strike.

To date, the Company has lost approximately 225,373 ounces platinum in the 12-week strike, equivalent to revenue of around R 5.8 billion.

Anglo American Platinum urges AMCU and its members to seriously consider this offer. Talks between the producers and AMCU are scheduled to continue next week Tuesday.

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Implats tables settlement offer to AMCU

Offer to take minimum underground cash remuneration to R12,500 per month by July 2017

Impala Platinum Holdings Limited (Implats) advise that the company has tabled a strike settlement offer in respect of wages and benefits to employees who are members of the Association of Mineworkers and Construction Union (AMCU).  This follows recent engagements with the President of AMCU, Mr Joseph Mathunjwa, and AMCU's national leadership.

The proposed increases will ensure that the minimum cash remuneration (comprising basic wages and holiday, living out and other allowances) for entry level underground employees will rise to R12,500 per month (R150,000 per annum) by July 2017.  To achieve this, the cash remuneration for these employees would rise between 7.5% and 10% across the various bands of employees, with relevant allowances rising in line with inflation.

It is important to note that by implementing these increases, the cost to company for the lowest paid underground employee would be in excess of R 17,500 per month (R210,000 per annum) by July 2017.  The cost to company includes cash remuneration, medical, retirement, overtime and bonus provisions.  Longer term issues such as labour migrancy and living conditions will be handled through company-level joint task teams.

The company note that it can ill afford the revised settlement offer, which represents an increase from the previous 7.5% to 9% CCMA offer, and the 7.5% to 8,5% offer made prior to the commencement of the strike.  These concessions have been made in good faith through various attempts over the last two months to end this industrial action.  Labour costs account for approximately 55% to 60% of annual production costs and unsustainable increases in these costs will be catastrophic to the future viability of the company.

This settlement offer has been made in the interests of bringing an end to the debilitating 12-week strike that has crippled the platinum sector and has brought untold hardship to employees, their families, communities and the platinum companies.

The offer currently includes the payment of back-pay related to the annual increase.   This takes effect from 1 July 2013 and the principle of ‘no work, no pay' will apply for the duration of the strike.

To date, Implats has lost approximately 180,000 ounces platinum in the 12-week strike, equivalent to revenue of around R4.0 billion, while employees have forfeited wages of some R1.4 billion.

Implats urges AMCU and its members to seriously consider this offer.  Talks between the platinum producers and AMCU are scheduled to continue next week Tuesday.

Statements issued by the Platinum Producers, April 18 2014

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