South African Platinum Wage Talks Suspended; No Agreement Reached

Bloomberg reported that talks between South Africa’s Association of Mineworkers and Construction Union (AMCU) and major miners Lonmin plc (LSE:LMI), Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY) Anglo American Platinum Ltd. (OTCMKTS:AGPPY) have been suspended after the parties failed to reach an agreement.

AMCU members have been striking at the operations of the above-listed miners for the past two weeks as part of their campaign for higher wages.

As quoted in the market news:

‘We cannot say that everything has collapsed,’ Association of Mineworkers and Construction Union President Joseph Mathunjwa said today by phone. ‘The employers didn’t want to accept the proposal of CCMA, which was disappointing.’

The union has more than 70,000 members on strike in support of demands including a doubling of monthly basic pay to more than 12,500 rand ($1,126). The companies say about 45 percent of local producers fail to break even and a long strike will worsen losses. The cost to the nation is about $360 million, they said, while miners have lost pay and benefits of about $80 million.

Click here to read the full Bloomberg report.