Amcu reaches pay deal with Amplats
THE largest union on the platinum belt, the Association of Mineworkers and Construction Union, has reached a three-year wage deal with the biggest platinum producer, Anglo American Platinum.
The deal gives the lowestpaid workers an annual increase of 12.5% in basic pay backdated from July 1 2016 and effective until 2018.
Because Sibanye has acquired Amplats’ Rustenburg mines, the agreement is binding on Sibanye as well.
Sibanye spokesman James Wellsted said the deal was costlier than the company had anticipated, but it was a “reasonable” increase.
“A three-year wage deal is quite positive because it will give us time to get into and integrate these operations and try to realise the synergies between them [the Rustenburg mines] and Kroondal without the distractions of wage negotiations for the next three years,” he said.
Setendra Naidoo, a resources analyst at Capricorn Fund Managers, said the deal with Amplats had to be concluded faster than with the other two big platinum companies as the Rustenburg mines would officially be Sibanye’s by November 1 and the deal avoided Amcu having to go into negotiations with Sibanye as well.
Amcu said in a statement: “This is a far-reaching agreement which reflects [an increase] way above inflation for our members.”
Inflation was 6.1% in September. The agreement means that pay will increase annually by R1 000, or 7%, whichever is greater, for workers in higher wage bands.
Amplats CEO Chris Griffith said the company was pleased to have reached an agreement that would benefit workers while “still ensuring our business remains viable for the long term”.
The agreement comes after a two-month negotiation process in which Amcu had declared a deadlock with all three platinum companies — Amplats, Implats and Lonmin — but continued to engage with them without the mediation of the Commission for Conciliation, Mediation and Arbitration.
Naidoo said the company had emerged a lot stronger than the union but negotiations between them had improved.
“Even with discussions on acquisitions, the unions are now included, so the relationships with the companies have got a lot better now than in 2014.”
He said the wage deal would probably be similar to those reached by the other two platinum companies, expected to be announced today or tomorrow.
On Wednesday, Implats chairman Mandla Gantsho said there was an agreement in principle with the union, but it had gone to consult
This is a farreaching agreement . . . way above inflation
members. However, he was sure the deal would be closed soon.
Amcu spokesman Manzini Zungu said the offer from Lonmin and Implats was on the table but the relevant announcements would only be made today.
On Tuesday, Amplats released its third-quarter results showing that its total platinum production increased 1% to 619 100 ounces compared to the same period last year, and its refined platinum production was up by 14% to 694 600 ounces for the quarter, reflecting the recovery at the Precious Metals Refinery.
Implats’ first-quarter results for the 2017 financial year, released on Friday, showed production up by 20% to 365 200 ounces, compared to 304 100 ounces in the same period last year.
Implats, which is leading the JSE’s platinum mining index this year, has gained 110% year to date, while Amplats is in third place with an 89% increase in its share price.