Talks between the Amcu and the world’s top three platinum producers to end the sector strike in South Africa ended in a deadlock on Monday. The Association of Mineworkers and Construction (Amcu) said it is confident that progress will be made this week as the bosses of American Platinum, Impala Platinum and Lonmin consider the union’s demands.
Amcu is demanding minimum entry-level pay of 12,500 rand per month from the three platinum producers, which is more than double the current levels. The platinum producers have responded that the increases are too expensive and have made offers of between 7.5 and 8.5 percent, well above the current inflation rate of 5.4 percent.
The negotiations will resume on Tuesday and are scheduled to go on into Wednesday.
On Thursday, Amcu members downed tools at mines in South Africa, threatening half of the world’s output of platinum and creating serious concerns for investors worldwide. Despite violent unrest in the Rustenburg area over recent years, the strike has been peaceful so far.