A six-week wage dispute strike by workers at Northam Platinum's Zondereinde mine in South Africa finally came to an end on Monday (18th October).

The industrial action, which has cost the company about 1,000 oz per day in pgm output, involved roughly 80 per cent of its 6,800 employees at the facility in Limpopo province.

After a string of failed negotiations, the National Union of Mineworkers (NUM) accepted Northam's latest offer of a scale-based pay hike of between ten and 13 per cent.

In addition, the workers were granted a monthly living allowance of R1,800, representing a rise of R200, although the NUM had been holding out for R3,500 per month.

Reports suggest that the strike cost Northam about R380 million, which has raised doubts about how it will progress with its world-class Booysendal platinum asset.

The company had claimed earlier this year that it would use its R1 billion cash reserves, but questions are now being asked about the viability of this plan.

However, Northam spokeswoman Marion Brower insisted that the firm has other options for funding the work, such as through a convertible bond.

"The strike's effect definitely does not impact the Booysendal project in the short term," she told Business Day.

NUM spokesman Lesiba Seshoka offered no sympathy to Northam, suggesting that it should have been more reasonable in negotiations if it wanted to avoid such a significant financial loss.

"It has been stupid for the management to let the strike run for six weeks," he said.

"When the strike began, we moved from demanding 15 per cent to demanding 12 per cent and they should have accepted our 12 per cent."

Booysendal, which is located on the eastern limb of the platinum-rich Bushveld Complex, has a resource of 100 million ounces of pgms.

Source:

Strike at Northam mine might affect growth project (19/10/10)

Northam Platinum 43-Day Strike by Workers Cost $33 Million in Lost Revenue

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