HomeNewsStrike costs Northam R250 million so far

Strike costs Northam R250 million so far

Northam’s Zondereinde
platinum mine
Johannesburg, South Africa — MININGREVIEW.COM — 07 October 2010 – Northam Platinum, one of South Africa’s smaller platinum producers, has revealed that the strike at its Zondereinde mine in the North West province “’ now in its fifth week “’ has cost the company about R250 million so far in lost revenue.

Revealing this in a statement issued here, the company emphasised that it remained committed to further talks to end the strike. This followed the news that the workers had rejected Northam’s latest pay offer of a 9.5% rise and a housing allowance of R1 750 a month. The NUM is demanding a 15% increase and a housing allowance of R3 500.

“Employees in the affected categories have lost approximately R60 million in wages and benefits,” Northam added.

“The offer was rejected and the strike continues,” said NUM chief negotiator at Northam Zwelitsha Tantsi .

Meanwhile a smaller union, Solidarity, has signed a wage deal with Northam, while the NUM continues its stand.

South Africa, the continent’s biggest economy, has been hit by a wave of strikes and strike threats, which have led to pay settlements well above the inflation rate, and have raised fears that the cost of living will rise.