JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum on Thursday refused to accede to the National Union of Mineworkers’ (NUM’s) demands, saying that the proposed wage or housing and living-out allowance increases – staggered or otherwise – would put the company’s future at risk.

The protracted strike at the company’s Zondereinde mine, which had entered its fourth week, also brought the affordability of Northam’s current offer into question, while threatening the company’s ability to consider other nonwage-related demands or its ability to avoid job losses.

“Considering the mine’s financial position, the current economic climate and the depreciating basket price we receive for our metals, which has been below the gold price for several years, management must and will continue to act in the best interest of all stakeholders,” Northam said in a response statement to the NUM’s memorandum.

The NUM delivered a memorandum of demands to Northam’s corporate offices in Sandton on Tuesday.

Northam said it was already offering the highest proposed increases in the mining industry this year, and above that of the gold sector, in which the NUM is the dominant union.

The platinum producer tabled a two-year wage increase offer of 9% for core and 8% for noncore employees, as well as an 8% increase in the living-out allowance.

“Negotiation … is, by definition, a process of give and take … during the private mediation processes the NUM did not alter its demands at all, while the company made two consecutive improvements in its offer.”

The group further pointed out that any rise in the settlement would “inform the affordability” of any other issues still in dispute.

Northam also stood firm on its stance that there was no scientific evidence of any ill effects of hydropower, as the NUM was claiming, stressing that the benefits of hydropower were “significant” in terms of occupational health, such as cooler conditions, reduced noise and reduced dust in underground environments.

“That said, should the union wish to raise specific and well-founded concerns, then the company would address them,” Northam said.

Further, the miner pointed out that there was no industry policy relating to paid maternity leave; however, ithighlighted that  the company went further than required by the Basic Conditions of Employment Act, which provided for four month’s unpaid leave.

Currently, Northam offered one month’s paid maternity leave and bore the cost of pregnant employees not being able to work underground during and immediately after their pregnancy.