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Shabangu denies encouraging Amplats to sue AMCU

Mineral Resources Minister Susan Shabangu

Mineral Resources Minister Susan Shabangu

Photo by Duane Daws

21st February 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Mineral Resources Minister Susan Shabangu on Friday denied encouraging platinum miner Anglo American Platinum (Amplats) to take legal action against the Association of Mineworkers and Construction Union (AMCU).

Amplats on Sunday announced that it was suing AMCU for R591-million in damages it said resulted from the ongoing strike action by AMCU members.

At a media briefing on Thursday, AMCU president Joseph Mathunjwa said Amplats had been advised to pursue legal action by Shabangu, interpreting this as an attack by the State and the private sector on “progressive” trade unions.

According to a report by Business Day Live on February 17, Shabangu was rumoured to have “exhorted [Amplats, Lonmin and Impala Platinum] to take a tougher line with AMCU and to explore legal options to end the strike”, which started on January 23.

“We are aware that these companies are receiving advice to take this route from those we hold in high esteem as custodians of the interests of the poor. [Big] capital and the State are ganging up against AMCU . . . [from] where do they think we’ll get R591-million?” Mathunjwa held.

However, Shabangu said she was not involved in the issue. “Where do I fit in with companies suing unions? I was in Cape Town all week, so how do I enter that space if I was not there?” she told media on Friday.

Shabangu added that should companies decide to sue unions, she could not stop them any more than she could stop unions from striking.

“All parties have their recourse in terms of the law and there is no way I can define their space when it comes to the law. Every party must do what they believe to be in their best interest,” the Minister stated.

Meanwhile, AMCU on Thursday also said it would be willing to move on its wage demand of R12 500 for entry-level miners in the platinum sector, but only if the CEOs of the three platinum majors at which the union was currently striking negotiated directly with AMCU at Council for Conciliation, Mediation and Arbitration-facilitated talks.

Shabangu said she could not decide whether demands had to be lowered but emphasised that the negotiations were critical and reaching a speedy resolution was important.

“It is a reality that this strike is hurting our economy, so we continue to urge the parties to find a common ground and settle, because it is just unaffordable for us to continue in this space,” she said.

Meanwhile, Implats CEO Terence Goodlace said in a statement on Friday that the company was disappointed “that we have not been able to resolve the current platinum industry wage strike”.

He added that the miner was, however, committed to engaging further with AMCU and was determined to find a solution that would allow better wages and benefits for its employees, preserve jobs and ensure the survival of the company’s business.

During the strike period Implats had lost about 61 600 oz of platinum, amounting to R1.38-billion in revenue.

The platinum producers tabled a revised wage offer to AMCU members on January 29 based on a set of principles that would ultimately realise a minimum guaranteed pay package of R12 500 a month over time.

This offer represented an increase in wages and benefits of some R2-billion in the first year alone for the three companies combined, Implats said, adding that the revised offer had to be viewed in the context of an industry having reported a cash loss of about R4.3-billion in 2013. 

“Implats has offered to increase the minimum monthly guaranteed pay package by 26% over three years. This would increase the minimum guaranteed package for surface employees from R8 641 to R10 915 and for underground employees from R9 297 to R11 746 respectively over the three-year period,” the company added.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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