Amplats, Implats and Lonmin Jointly Address AMCU’s Demands

Reuters reported that the chief executives of Anglo American Platinum Ltd. (OTCMKTS:AGPPY), Lonmin plc (LSE:LMI) and Impala Platinum Holdings Ltd. (OTCMKTS:IMPUY) have jointly stated that South Africa’s Association of Mineworkers and Construction Union (AMCU) is making “unaffordable and unrealistic” demands, as well as making promises to its members “that cannot be delivered upon.”

As quoted in the market news:

AMCU’s charismatic president, Joseph Mathunjwa, is under pressure to deliver on pledges of a “living wage” of 12,500 rand ($1,200) a month, more than double current levels.

The platinum chiefs – Amplats’ Chris Griffith, Implats’ Terence Goodlace, and Lonmin’s Ben Magara – said their wage increase offers ranged from 7.5 to 8.5 percent, well above the current inflation rate of 5.3 percent.

The companies were battered by wildcat strikes in 2012 rooted in a turf war between AMCU and the National Union of Mineworkers (NUM), in which dozens of people were killed.

Click here to read the full Reuters report.