Anglo American Platinum and AMCU have bee engaged in negotiations since last year, but despite attempts to come to a sustainable agreement on wages and other conditions of employment, have not been able to reach a solution acceptable to both parties. Anglo American Platinum also remains in negotiations with the National Union of Metalworkers of South Africa (NUMSA).

Anglo American Platinum signed a two-year wage agreement in December 2013 with the National Union of Mineworkers (NUM) and with UASA (United Association of South Africa) effective from 1st July 2013. The agreement guarantees that the minimum wage increase over the two years will be between 7.5%-8.5% for first year, and 8.0% in the second year.

The CEO of Anglo American Platinum, Chris Griffith, noted with extreme disappointment this development: “Our restructuring process aimed at restoring profitability to all our operations has only recently got under way, and we were expecting to start seeing some of the early benefits in the coming months. A strike will completely undermine the progress we have made in the last few months and also increase the possibility of further job losses. We appeal to the union and to our employees to understand that the company simply cannot afford the increases that the unions are currently demanding. A strike will impact negatively on employees, their families, communities, our company and the country as a whole”.

The company will engage with relevant authorities for a peaceful strike and encourages all employees who are participating in the strike to respect their fellow colleagues’ right to report to work. Anglo American Platinum will continue to engage with the unions in an effort to avert a protracted strike. The “no work-no pay rule” will apply to all those who choose to strike.