Engagement with AMCU continues

Johannesburg, 18 June - Platinum producers, Anglo American Platinum Limited (Amplats), Impala Platinum Holdings Limited (Implats) and Lonmin Plc (Lonmin) can confirm that each company has received written feedback from Association of Mineworkers and Construction Union (AMCU) president Joseph Mathunjwa. This follows an ‘in principle' agreement reached between the companies and AMCU leadership last week. AMCU committed to take this agreement to their members at the various mass meetings to receive a mandate from their members to sign an agreement.

The letters received from AMCU confirmed that the union had received a mandate from its members to finalise agreements with the companies that would bring an end to the five-month strike. The letters raise various procedural issues, such as the timeframe of proposed agreements, which the companies are willing to discuss with the union leadership. Regrettably, however, the letters also contain new and additional demands which, if granted, would mean huge additional costs -of around R1 billion in aggregate - to the companies, beyond the increases contained in the ‘in principle' agreements.

The companies simply cannot afford the additional wage demands. Engagement with AMCU on their latest demands is ongoing. The goal remains a sustainable solution beneficial to all stakeholders.

The companies confirm that there has been a return to the platinum belt region of large numbers of employees who have spent the strike period elsewhere.

To date the companies have forfeited earnings of around R23.1 billion, while employees have forfeited earnings of some R10.3 billion.

Statement issued by Charmane Russell on behalf of the Platinum Producers, June 18 2014

Click here to sign up to receive our free daily headline email newsletter