SOUTH AFRICA: S.Africa mining minister quits wage talks over deadlock

Record ID: 341744

  • Title: SOUTH AFRICA: S.Africa mining minister quits wage talks over deadlock
  • Date: 10th June 2014
  • Summary: MARIKANA, RUSTENBURG, SOUTH AFRICA (FILE - MAY 28, 2014) (REUTERS) STRIKING MINERS WALKING PAST MINE AFTER COLLECTING FOOD PARCELS SIGN READING "ANGLO AMERICAN PLATINUM KHOMANANI MINE 1 SHAFT" MORE OF MINE EXTERIOR
  • Embargoed: 25th June 2014 13:00
  • Keywords:
  • Location: South Africa
  • Country: South Africa
  • Topics: Business,Industry
  • Reuters ID: LVA9ACE6W9G11BC49EWG8C120RH
  • Story Text: Wage talks between South Africa's main mine workers' union and major platinum producers were deadlocked on Monday (June 9), prompting the mining minister to abandon his mediation role and dashing hopes for an end to a strike that is pushing the economy towards recession.
    The five-month strike has halted mines that normally account for about 40 percent of global platinum output.
    "We can't prolong the negotiations beyond a certain - two weeks is reasonable enough for me. With the work we have done, effort we have put, not sleeping, working around the clock, two weeks should be enough to break the deadlock," said mining minister Ngoako Ramathlodi.
    About 70,000 workers downed tools in January, demanding higher pay. The strike has halted mines that normally account for 40 percent of global platinum output and has hit wider economic output in Africa's most advanced economy, pushing it into contraction in the first quarter of this year.
    "Mining in South Africa will eventually decline to insignificance, we have at the moment 550 thousand workers in mining, we're expecting at Adcorp that that will fall by about 220 thousand over the next three years," said labour analyst Loane Sharp.
    South Africa's AMCU union and major platinum producers met on Monday for more talks aimed at ending the crippling five-month miners' strike.
    AMCU workers at mines run by Anglo American, Impala and Lonmin went on strike to demand that their basic wages be more than doubled to 12,500 rand ($1,200) a month.
    The sides have previously held several rounds of talks, with the companies offering pay increases of up to 10 percent, which would raise the overall minimum pay package to 12,500 rand by July 2017, although this includes cash allowances for necessities such as housing.
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