By Ian Walker
LONDON--Anglo American Platinum Ltd. (AMS.JO) Wednesday said
talks between the platinum sector and unions to end strikes in
South Africa have been suspended indefinitely to allow stakeholders
time to reflect on the current offer.
There is an offer of up to 9% on the table, but it's
considerably below the Association of Mineworkers and Construction
Union's demand of an annual increase of 29%, which the industry
believes is "unaffordable," the world's biggest platinum producer
said.
Anglo American Platinum said AMCU's revised offer remains
significantly above inflation and a further increase "is not
sustainable".
"Anglo American Platinum is discouraged by the turn of events at
the CCMA [Commission for Conciliation Mediation and Arbitration],"
Chief Executive Chris Griffith said, adding that the negotiating
team is hopeful the AMCU will work towards a solution that will
benefit its members.
"We remain open to further engagements to help bring the strike
to an end," Mr. Griffith said.
The industry has offered a three-year settlement to end the
strikes. For the lowest paid A-level miners, the first year
increase would be 9%, which will go down to 8.0% in the second year
and 7.5% in the third year. The AMCU is demanding a 12,000 Rand
($1,108) basic salary for the lowest paid workers over a period of
four years, which equates to an increase of 29%.
Separately, Lonmin PLC (LMI.LN) said the strike action has so
far lost it around 90,000 saleable platinum ounces and that it
won't achieve its sales guidance of 750,000 ounces, cautioning
that, until the strike has ended, it is unable to provide specific
detail on these changes.
Lonmin Chief Executive Ben Magara said: "We and Amplats [Anglo
American Platinum] and Implats [Impala Platinum Holdings Ltd.
(IMP.JO)] remain, as we have been throughout this process,
committed to finding a positive and sustainable resolution to the
dispute in the interest of all our stakeholders and importantly for
the sustainability of our business."
-Write to Ian Walker at ian.walker@wsj.com
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