Strike looms in S. Africa platinum mines

Members of South Africa's Association of Mineworkers and Construction Union (AMCU) attend a rally in Rustenburg, northwest of Johannesburg January 19, 2014. [Photo/Agencies]

JOHANNESBURG - The Association of Mineworkers and Construction Union (AMCU) on Monday issued to the world's top three platinum producers a 48-hour notice of its intention to down tools over salary disagreements.

The strike would be at Anglo American Platinum (Amplats), Lonmin and Impala Platinum. The strike will start with the morning shift on Jan 23, 2013.

Lonmin confirmed the intended strike on Monday in a statement saying, "The Association of Mineworkers and Construction Union ("AMCU") has today (Monday) issued Lonmin with a 48-hour notice of its intention to embark upon protected strike action.  According to the notice received from AMCU, the strike will commence on Thursday January 23, 2014."

AMCU and Lomnin met the arbitrator the Commission of Conciliation, Mediation and Arbitration (CCMA) on Dec 10, 2013.

The two could not agree on the salary to be paid. At Amplats and Lonmin, AMCU are demanding a monthly wage of R12,500 for entry- level workers. They were also demanding, R8,500 from Implats.

Lonmin said, "Lonmin remains committed to finding a positive and sustainable resolution to the dispute in the interests of all its stakeholders and management continues to engage at all levels to seek agreement".

Joseph Mathunjwa, the president of AMCU, confirmed the looming strike. Amplats have indicated that they cannot afford the salary increases. Anglo Platinum says there has been rising operational costs and a global drop in the price of platinum.

About 15,000 union members at Anglo American Platinum met in Rustenburg on Sunday and voted to down tools.

There are about 100,000 workers at the three biggest platinum producers, Anglo American Platinum (Amplats), Impala Platinum (Implats) and Lonmin who are expected to go on strike. The Reserve bank of South Africa end of last year warned that strikes in the country might negatively impact on South Africa's credit ratings. South Africa produce more that 70 percent of the world's platinum.