Additional Amcu demands could cost up to R1bn

Talks continued yesterday between three platinum producers and the Association of Mineworkers and Construction Union (Amcu) after the union submitted letters of additional demands. The letters, if granted, would mean huge additional costs of around R1 billion in aggregate.

In a joint media statement, platinum producers Anglo American Platinum Limited (Amplats), Impala Platinum Holdings Limited (Implats) and Lonmin Plc (Lonmin) confirmed that each company had received written feedback from Association of Mineworkers and Construction Union (AMCU) president Joseph Mathunjwa following 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 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 producers said in a joint statement.

The companies noted that they simply could not 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 producers said.

The companies also confirmed that there had been a return to the platinum belt region of large numbers of employees who had spent the strike period elsewhere.  The official Platinum Wage Negotiations website reports that to date the companies have forfeited earnings of around R23.1 billion, while employees have forfeited earnings of some R10.3 billion.