BRIEF-Amplats, Implats table wage settlement offer to striking AMCU union

April 17 Thu Apr 17, 2014 12:40pm EDT

April 17 (Reuters) - Anglo American Platinum Ltd and Impala Platinum Holdings Ltd :

* Platinum producers table settlement offer to AMCU

* Has tabled a strike settlement offer in respect of wages and benefits to employees who are members of the association of mineworkers and construction union

* Advise that the company has tabled a strike settlement offer in respect of wages and benefits to employees who are members of the Association of Mineworkers and Construction Union (AMCU).

* Proposed increases will ensure that the minimum cash remuneration for entry level underground employees will rise to R12,500 per month by July 2017

* The cash remuneration for the employees would rise between 7.5 pct and 10 pct across the various bands of employees, with relevant allowances rising in line with inflation.

* By implementing these increases by July 2017, the cost to company for the lowest paid underground employee would be in excess of R17,500 per month

* The company notes that it can ill afford the revised settlement offer, which represents an increase from the 7.5% to 9 pct CCMA offer, and the 7.5 pct to 8,5 pct offer made prior to the commencement of the strike

* Labour costs account for approximately 55 pct to 60 pct of annual production costs and unsustainable increases in these costs will be catastrophic to the future viability of the industry

* Settlement offer has been made in the interests of bringing an end to the debilitating 12-week strike that has crippled the platinum sector

* Principle of 'no work, no pay' applies for the duration of the strike.

* Anglo american platinum says has to date has lost approximately 225,373 ounces platinum in the 12-week strike, equivalent to revenue of around r 5.8 billion

* Impala says has to date lost approximately 180,000 ounces of platinum in the 12-week strike, equivalent to revenue of around R4.0 billion, while employees have forfeited wages of some R1.4 billion. Further company coverage:

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