ANGLO American Platinum (Amplats) has signed a five-year wage agreement with unions that will increase total labor costs for the company by an average of 6.6% over the period.
He said in an announcement today that the agreement was signed with 90% of unionized workers, including those affiliated with the National Union of Miners (NUM) and the Association of Miners and Construction Union ( AMCU).
The new pay agreement, which includes UASA, affects all affected employees and will be implemented from July 1, Amplats said.
“We believe this multi-year agreement will allow our business to remain sustainable through PGM (Platinum Group Metal) price cycles, while ensuring that our employees are rewarded for their work as we seek to deliver value. to all of our stakeholders in society,” said Amplats CEO Natascha Viljoen.
Producer inflation in South Africa hit a record high in April. Prices for final manufactured goods increased by 13.1%, compared to 11.9% in March, said Bloomberg News citing data from Statistics South Africa.
It’s the highest rate since early 2013, when the statistics bureau split its producer price index and started reporting five different measures for factory-gate prices, including l agriculture, mining, electricity and water, and intermediate manufactured goods, the newswire said.
Earlier this month, Rating agency Moody’s said inflation in South Africa is expected to reach 8% this yearexceeding the central bank’s target amid the global impact of the conflict in Ukraine and rising interest rates in the United States.
Amplats did not disclose further details, but according to RMB Morgan Stanley, a broader aspect of the pay deal is that it could include a new stock ownership plan. He “…may well be part of/ancillary to this series of wage settlements,” the bank said.
The settlement is good news for investors who have enjoyed strong returns from growers over the past two years. The record profits of Amplats and Impala Platinum (Implats) may not be repeated this year, but due to rising inflation.
A prolonged strike would be the last thing the industry wants. Salary talks were also progressing well with Implats, according to a Bloomberg News report. His spokesman Johan Theron said the negotiations had been “constructive”.
“It’s in everyone’s interest to get a deal for an extended period,” Theron added. “It helps provide stability and the employer knows what the labor cost will be. It’s easier to make long-term plans.
Northam Platinum signed a five-year deal at around 6.5% last year while South Africa’s other major PGM producer, Sibanye-Stillwater, is due to begin PGM wage negotiations on June 1.
Sibanye-Stillwater joins the negotiating table as a strike at its gold mines heads into a fourth month.
Relations between her and the NUM and AMCU are not strong at the moment due to strike-related tensions, but Sibanye-Stillwater has asked the Commission for Mediation, Conciliation and Arbitration (CMMA) to to intervene. The company said it would respect the CCMA’s ruling on the impasse.