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SAfrica miners demand 15 pct wage hike from Angloplat
JOHANNESBURG, June 10 |
JOHANNESBURG, June 10 (Reuters) - South Africa's mineworkers union said on Wednesday it wants a wage increase of 15 percent -- far more than the inflation rate -- for its members at Anglo Platinum (AMSJ.J), the world's biggest platinum producer.
The National Union of Mineworkers (NUM) rejected Angloplat's offer of 6 percent, and demanded that the company raises the minimum wage of surface workers to 4,200 rand ($522.2) and to 4,500 rand for underground workers, it said in a statement.
Angloplat was not immediately available for comment.
The NUM has backed calls by metals workers for deeper interest rate cuts and higher wages, worrying foreign investors who are closely watching to see if newly-elected President Jacob Zuma will give in to their demands.
South Africa's inflation rate is at 8.4 percent, and the wage demand could set the scene for tough negotiations in a sector that has been badly hit by the global economic crisis.
The NUM, which says it represents 31,000 workers at Angloplat, also asked for maternity leave to be extended to six months with pay and for Angloplat to phase out labour brokers.
The next negotiations are due on June 25 and 26.
The request comes a day after the NUM asked for a 20 percent increase in wages for workers at Impala Platinum (IMPJ.J), the second biggest producer of the metal in the world.
Wage talks in South Africa's mining sector are closely watched because there is a chance of disruption in output and an impact on metal prices if talks fail and workers go on strike.
The mining sector has said the union's wage demands are well above inflation, and mining companies say paying out such increases could dramatically jerk up production costs and jeopardise the long-term survival of the industry.
The country's gold producers are already engaged in wage negotiations with the NUM, and have offered a 6 percent wage increase, but the union has threatened to strike if its demand of a 15 percent wage hike is not met.
The price of platinum, used in auto catalysts and in jewellery, has tumbled due to the credit squeeze, which eroded demand for cars, leading to big cutbacks on planned capital expenditure and growth projects in the sector. XPT= ($1=8.042 Rand) (Reporting by Agnieszka Flak; editing by Mike Nesbit)
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