Anglo American Platinum, the world’s biggest producer of the metal, signed a two-year wage agreement with eight labour unions on Tuesday, ending months of negotiations, the unions and company said.
The deal includes wage increases of 9,8% for 2002/2003 and 9,25% for 2003/2004, increased annual leave and improved housing schemes for 35 000 workers at Angloplat’s South African operations.
Angloplat is controlled by diversified miner Anglo American plc and produces more than two million ounces of platinum a year.
South African Reserve Bank Governor Tito Mboweni has highlighted wage increases as one of the biggest threats to the country’s inflation target of three to six percent.
The bank’s targeted CPIX inflation measure surged by an annual rate of 9,9% in July — the ninth consecutive month it has strayed outside its target range.
Tuesday’s agreement is the first time Angloplat and the eight unions had negotiated a wage deal in a central bargaining process, the unions and Angloplat said.
It included for the first time harmonising conditions of employment for workers across all categories of employment.
”This is a landmark agreement,” Archie Pilane of the National Union of Mineworkers (NUM) said at a media briefing. ”But a lot still needs to be clarified
… there is the question of medical aid.”
Unhappiness over a new medical aid scheme led to a four-day strike in April. Threats of further action had sparked fears of a possible output disruption and lifted the platinum price earlier in the year.
Pilane and Eric Ngubane, Angloplat’s executive director of human resources, said on Tuesday a task team had been set up to look into the medical aid issue and that there would be a meeting soon to consider its report.
”We are in the process of trying to resolve the matter,” Ngubane said.
Angloplat’s share price was 3,3% or R11 higher at R346 about 15 minutes before the close, as the price of the white metal rose to $554,00/562,00 an ounce at 1435 GMT, from New York’s $547/552 close on Monday. – Reuters