Implats: most miners want to end platinum strike
By Ed Stoddard
"We will have a totally clear picture next week," he said.
The producers last week said they would take their latest offer directly to the roughly 70,000 striking miners after talks collapsed, setting the stage for a dramatic showdown.
AMCU had initially demanded an immediate increase in the basic wage – net salary before allowances such as housing – for entry-level workers to R12,500 ($1,200) a month, more than double current levels. It has since said it would accept annual increases that would reach this level in three or four years. The producers' latest offer is for rises of up to 10 percent and other increases that would take the minimum pay package – the basic wage including allowances – to R12,500 a month by July 2017.
They say they cannot afford to pay more, given rising costs and depressed prices for the precious metal used for emissions-capping catalytic converters in automobiles.
FORCING AMCU'S HAND
The companies are clearly trying to force the hand of AMCU and betting that its rank and file are ready to return to the shafts after three straight months without pay.
Employees have lost more than R7 billion in wages so far, according to an industry website that provides a running tally (http://www.platinumwagenegotiations.co.za/).
The stakes could hardly be higher given the producers' huge and escalating revenue losses.
But the industry is bleeding cash and underlying its woes is the muted price reaction to the stoppage, even though more than 700,000 ounces of production have been lost so far – about 12 percent of annual global output.
Spot platinum is fetching around $1,417 an ounce, a little lower than it was on the eve of the strike.
Prices are expected to climb back to levels not seen in over a year later in 2014 as the impact of the strike starts to be felt, GFMS analysts at Thomson Reuters said as they launched their Platinum & Palladium Survey 2014.
($1 = 10.4830 South African Rand)
(Editing by Joe Brock and David Goodman)