Amplats Offers to Increase Basic Pay by 7%, UASA Union SaysBy
Offer agreed by top union AMCU needs ratifying by members
UASA union says it has put 2016-18 offer to its members
Anglo American Platinum Ltd., the top producer of the metal, offered to raise workers’ basic pay by 7 percent in a deal yet to be ratified by South Africa’s largest union for the industry, a separate labor group said.
The Association of Mineworkers and Construction Union agreed to the offer spanning 2016-18 and will need approval by its members, the UASA union said Tuesday in an e-mailed bulletin on the negotiations. The UASA said it has put the offer to its members.
Basic monthly pay will rise by 7 percent or 1,000 rand ($72), whichever is higher, according to the UASA. The AMCU, the biggest union at the country’s platinum mines and which began the negotiations seeking pay increases of 47 percent for the lowest-paid workers, last week said it was close to finalizing a new deal with the three largest producers.
“A certain percent of the employees will have to sacrifice in order to finance this deal," because overtime pay will drop to a lower basic rate as part of the offer, Franz Stehring, UASA union’s head of mining, said by phone.
The AMCU led a five-month strike in 2014, the longest in South African history, which resulted in a wage agreement that ended in June this year. The group has also reached agreements with Impala Platinum Holdings Ltd. and Lonmin Plc, which need to be confirmed by members, it said Friday.
AMCU spokesman Manzini Zungu declined to comment. Wage negotiations with unions are still ongoing, Mpumi Sithole, a spokeswoman for Amplats, said by e-mail.
The National Union of Mineworkers, the second-largest labor group at the company, is still consulting members on the deal, union spokesman Livhuwani Mammburu, said by phone.