Northam Platinum says wage negotiations between the management at its Zondereinde division and unions have failed.

Attempts to resolve a deadlock over pay with the National Union of Mineworkers (NUM) and Soildarity have been unsuccessful, the miner said in a statement.

Northam financial director Ayanda Khumalo said unions had "refused to consider the company's financial position", adding that demands for an aggregate wage increase of 27.9 per cent were "unrealistic".

"This is obviously unaffordable for Northam, given the continued volatility in the global economic environment and is exacerbated by the complex geological and mining difficulties which Zondereinde is grappling with," added Khumalo.

"The operation's very sustainability is at stake."

Annual wage negotiations were initially delayed at Zondereinde owing to the NUM purporting to represent a band of skilled employees (Category 9 and 10) ordinarily represented by Solidarity, Northam said in its statement.

After this had been resolved, the company raised its two-year offer to 6.6 per cent for year one, and 6.8 per cent for year two.

Unions had demanded a 12 per cent wage increase and a living out allowance increase of 58 per cent.

Negotiations with NUM for the remaining semi-skilled employees in categories 2 to 8 were derailed at the first meeting on October 12th, continued Northam.

At that meeting, unions demanded an overall wage increase of 20 per cent, a 94 per cent rise in the living out allowance and a 483 per cent increase in the allowance payable to hostel residents.

"The company remains eager to resolve the current impasse without having to resolve to third party intervention," Northam said.

Source:

Unions intransigent in dispute with Zondereinde (27/10/11) 

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