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Strike costs Northam R500m

13th December 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Losses owing to the six-week strike at Zondereinde were expected to reach R500-million, including R450-million in lost revenue, Northam Platinum reported on Friday.

The protracted strike had also cost workers R74-million in wages.

This came as the wage talks between the National Union of Mineworkers (NUM) and the platinum group metals miner remain unresolved.

The NUM was demanding an increase of 16% in basic wages and an increase of 69% in the living-out allowance.

Northam had tabled its final offer of wage increases ranging between 8% and 9% for noncore and core employees in the A and B categories and an 8% increase in the living-out allowance, conditional on a two-year wage agreement.

Northam on Friday proposed to the Commission for Conciliation, Mediation and Arbitration that the second attempt at facilitated wage negotiations be held in abeyance until the New Year “in light of [the] NUM’s intransigent position”.

The NUM has vowed that its members would continue with the strike throughout the Christmas period to "send a strong message to Northam Platinum management, its board and its shareholders that no amount of arrogance will help them and that where elephants fight, the grass shall suffer".

Edited by Tracy Klückow
Creamer Media Contributing Editor

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