The Wall Street Journal reported that according to South Africa’s National Union of Mineworkers (NUM), beginning on Sunday, 7,000 employees of Northam Platinum Ltd. (OTCMKTS:NMPNF) will go on strike. The move is part of the union’s efforts to garner an across-the-board wage increase to 2,100 rand a month.
As quoted in the market news:
‘We are now determined to strike at Northam simply to deal with the company’s arrogance,’ said NUM chief negotiator Ecliff Tantsi.
Northam said the NUM’s demand equates to an annual increase of ZAR117.3 million to the company’s ZAR1.3 billion wage bill. Labor accounts for 50% to 60% of mining companies’ total costs.
Negotiations between mining companies and unions have been tense with competing unions vying for members through promises of higher pay.