By Devon Maylie
JOHANNESBURG--South Africa's platinum producers and the
Association of Mineworkers and Construction Union have agreed "in
principle" to a wage offer to end a 21-week strike, but some issues
remain.
The AMCU held meetings with its members in the platinum belt on
Thursday to present for approval the latest offer from the world's
three biggest platinum producers-- Anglo American Platinum Ltd.,
Impala Platinum Holdings Ltd. and Lonmin PLC.
" 'In principle' undertakings have been reached with the
leadership of the Association of Mineworkers and Construction
Union," the companies said in a joint statement.
A spokesman for Impala said AMCU President Joseph Mathunjwa
called Impala's chief executive after speaking with members and
said that they had an agreement "in principle" but that there were
still some points the workers wanted discussed before the union
signs.
An AMCU leader at Anglo American Platinum's mines, Evans
Ramokga, said that the union and companies are close to a deal if
the companies make a few more concessions.
The companies said they expected to hear back from the union by
Friday. But Mr. Ramokga said talks could be delayed until the
weekend as union representatives plan to travel to one more
platinum-producing region on Friday.
Speaking to crowds of mine workers in the platinum belt on
Thursday, AMCU told its members to choose wisely, and some cheered
when they heard the offer. At Lonmin, workers said they wanted
changes to the offer before they agreed, including rehiring around
235 workers the company dismissed in May.
"I am quietly optimistic," said Johan Theron, a spokesman for
Impala Platinum.
Impala Platinum said it offered to increase workers' monthly
salaries by 1,000 rand ($93) for two years and then 950 rand
thereafter.
The companies initially wanted the offer to last for a five-year
period. The union wants to change the wage agreement to three years
so that it can continue to negotiate to reach 12,500 rand ($1,165)
a month, Mr. Ramokga said.
The companies also proposed to hold a forum with the union three
months after workers return to their jobs to discuss wider
structural issues that plague the mine workers, such as poor
housing. They also asked for the union to agree to not strike for
the next three years.
Some 70,000 miners stopped work on Jan. 23 to demand that the
minimum monthly wage be nearly tripled to 12,500 rand a month.
The latest round of talks mediated by South Africa's new
minister of mines broke down on Monday without a resolution.
AMCU leaders and the company chief executives have since held
private meetings in the last two days to hash out an end to the
strike. Mr. Mathunjwa said his union would canvass its members on
Thursday to get a mandate on what they wanted to do.
The strike has hobbled South Africa's already languishing
economy, inflicting more than $2 billion in lost revenue on mining
companies, and increasing poverty and violence in the communities
near the platinum mines. A rival union, the National Union of
Mineworkers, said some of its members' property was damaged this
week, including cars that were set on fire. Over the past month,
the NUM said five people who broke the strike and went to work were
killed around the mines.
Once the strike ends, analysts estimate it will still take at
least three months to get the operations back into full production.
In addition, the companies said some restructuring is likely, which
could lead to job losses.
When workers return to the mines, Lonmin spokeswoman Sue Vey
said there are still a number of issues that companies and the
unions will be discussing.
"There are structural issues in the mining sector that still
need to be addressed," Ms. Vey said.
Rory Gallivan contributed to this article
Write to Devon Maylie at devon.maylie@wsj.com
