NHM - Northam Platinum Limited - Unions intransigent in dispute with Zondereinde

NHM - Northam Platinum Limited - Unions intransigent in dispute with Zondereinde
NORTHAM PLATINUM LIMITED                                                        
(Incorporated in the Republic of South Africa)                                  
(Registration number 1977/003282/06)                                            
Share code: NHM    ISIN: ZAE000030912                                           
("Northam" or "the company")                                                    
UNIONS INTRANSIGENT IN DISPUTE WITH ZONDEREINDE                                 
The management of the Zondereinde division of Northam regrets to advise that the
company`s attempts to resolve the deadlock with the National Union of           
Mineworkers (NUM) and Solidarity with regard to the annual wage negotiations    
have been unsuccessful.                                                         
Northam financial director Ayanda Khumalo said today that the union had, to     
date, refused to consider the company`s financial position, had delayed the     
negotiations to this late stage of the year, and was being completely           
unrealistic in declining to shift from its demand for an increase which         
aggregates 27.9% for the semi-skilled category 2 to 8 employees.                
"This is obviously unaffordable for Northam, given the continued volatility in  
the global economic environment and is exacerbated by the complex geological and
mining difficulties which Zondereinde is grappling with.   The operation`s very 
sustainability is at stake."                                                    
Annual wage negotiations had been delayed at Zondereinde owing to the NUM       
purporting to represent a band of skilled employees (Category 9 and 10)         
ordinarily represented by Solidarity.  Once agreement had been reached between  
the two unions on their joint representation, the wage negotiations started on  
27 September 2011 followed by a further meeting on 13 October, when the company 
raised its two-year offer to 6.6% for year 1, and 6.8% for year 2.  This was in 
response to the union`s demand for a 12% wage increase and a living out         
allowance increase of 58%.                                                      
Negotiations with NUM for the remaining semi-skilled employees in categories 2  
to 8 were derailed at the first meeting on 12 October.  The union`s demands at  
this meeting amounted to:                                                       
An overall wage increase of 20%;                                                
A 94% increase in the living out allowance; and                                 
A 483% increase in the allowance payable to hostel residents.                   
The company remains eager to resolve the current impasse without having to      
resolve to third party intervention.                                            
Johannesburg                                                                    
27 October 2011                                                                 
Sponsor                                                                         
One Capital                                                                     
Date: 27/10/2011 13:37:39 Supplied by www.sharenet.co.za                     
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