By Devon Maylie
JOHANNESBURG--South Africa's platinum producers and the
Association of Mineworkers and Construction Union have agreed "in
principle" to a wage offer to end a 21-week strike.
The Association of Mineworkers and Construction Union held
meetings with its members in the platinum belt on Thursday to
present for approval the latest offer from the world's three
biggest platinum producers-- Anglo American Platinum Ltd., Impala
Platinum Holdings Ltd. and Lonmin PLC.
" 'In principle' undertakings have been reached with the
leadership of the Association of Mineworkers and Construction
Union," the companies said in a joint statement.
AMCU and its members could come back with amendments before a
final agreement is reached, they said, adding that the union will
report back to them by Friday.
Speaking to crowds of mine workers in the platinum belt on
Thursday, AMCU told its members to choose wisely, and some cheered
when they heard the offer. At Lonmin, several workers said they
wanted some changes to the offer before they agreed, including
rehiring around 235 workers the company dismissed last month.
"I am quietly optimistic," said Johan Theron, a spokesman for
Impala Platinum.
The platinum producers have offered to increase workers' monthly
salaries by 1,000 rand ($93) each year until their demand of 12,500
rand is reached. Thereafter, salaries will increase by 7.5% a year.
The companies also proposed to hold a forum with the union three
months after workers return to their jobs to discuss wider
structural issues that plague the mine workers, such as poor
housing. They also asked for the union to agree to not strike for
the next three years.
Some 70,000 miners stopped work on Jan. 23 to demand that the
minimum monthly wage be nearly tripled to 12,500 rand a month
($1,165). The latest round of talks mediated by South Africa's new
minister of mines broke down on Monday without a resolution.
Since then, AMCU leaders and the company chief executives have
held private meetings in the last two days to hash out a new way to
end the strike. AMCU President Joseph Mathunjwa said his union
would canvass its members on Thursday to get a mandate on what they
wanted to do.
The strike has hobbled South Africa's already languishing
economy, inflicting more than $2 billion in lost revenue on mining
companies and increasing poverty and violence in the communities
near the platinum mines. A rival union, the National Union of
Mineworkers, said some of its members' property was damaged this
week, including cars that were set on fire. Over the past month,
the NUM said five people who had been breaking the strike and going
to work have been killed around the mines.
Once the strike ends, analysts estimate it will still take at
least three months to get the operations back into full production.
In addition, the companies said some restructuring is likely, which
could lead to job losses.
Once workers return to the mines, Lonmin spokeswoman Sue Vey
said there are still a number of issues that companies and the
unions will be discussing.
"There are structural issues in the mining sector that still
need to be addressed," Ms. Vey said.
Rory Gallivan contributed to this article
Write to Devon Maylie at devon.maylie@wsj.com