Wrap Text
Anglo American Platinum and AMCU sign wage agreement
PLATINUM
ANGLO AMERICAN PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1946/022452/06)
Share Code: AMS
ISIN: ZAE000013181
("Anglo American Platinum" or the "Company")
NEWS RELEASE
ANGLO AMERICAN PLATINUM AND AMCU SIGN WAGE AGREEMENT
Anglo American Platinum announces that it has signed a 3-year wage agreement with the
Association of Mineworkers and Construction Union (AMCU), the terms of which take effect
retrospectively, from 1 July 2013.
The wage agreement includes:
- An annual increase of R1,000 per month in basic pay for A and B-band employees in
years 1 and 2 and R950 per month in year 3
- Increases in basic pay of 8% per annum for C and D1 for years 1 and 2 and 7.5% for
year 3
- Living-out allowances and Housing rent subsidies for employees will increase in line
with CPI in year 1 and remain flat in years 2 and 3
- Housing allowance will increase by 8% in year 1 and remain flat in years 2 and 3; and
- Other allowances will increase in line with salary increases in year 1 and there will be
no further increases in years 2 and 3. This is in order to fund the increase agreed to in
basic pay.
The principles that underpin the agreement seek to achieve a sustainable future for Anglo
American Platinum for the benefit of all stakeholders and to provide employees with the most
competitive increase in the current financial circumstances. The agreement is expected to
increase the total labour cost-to-company by 10.5% in year 1, 7.7% in year 2 and 7.1% in
year 3 or 8.4% on average over the 3 year period.
The Company has also undertaken to assist returning employees in the first month with the
provision of food parcels, health supplements, transport relief and the cash payment of back
pay within 7 days for the period they were not on strike as the principle of “no-work no-pay’
applied for the duration of the strike. Anglo American Platinum will further assist employees in
managing their indebtedness and personal finances by providing legal aid and personal
financial training to ensure they take a more robust approach to their personal finances.
Furthermore, it has been agreed that no strikes will be undertaken, related to any of the items
covered by the wage agreement, for the three year duration of the agreement.
As part of the Company’s overall cultural transformation that had already commenced, a
process of building bridges between management and employees will be the first step in
ensuring a safe return to work. The safe return to work programme also addresses health and
safety protocols and refresher training on general mine operations. Once operations are in a
position to start up safely, production ramp-up will begin. It is expected that steady state
production will be achieved in Q4 2014.
In order to ensure that the Company’s business remains sustainable and viable for the benefit
of all stakeholders, all parties to the wage agreement have agreed to discuss productivity in a
joint task team. This task team will also assess a number of other fundamental issues including
employee share ownership schemes, migrant labour and employee housing and living
conditions.
Anglo American Platinum is simultaneously evaluating the sustainability of all its platinum
operations in order to ensure the business continues to remain viable.
Anglo American Platinum confirms that as a result of the industrial action, total lost platinum
production has amounted to 423,904 equivalent refined platinum ounces at the time of signing,
equating to approximately R11.277 billion of lost revenue at current prices.
Chris Griffith, chief executive stated: “I am very pleased that we have reached an agreement
which has been the result of dialogue and collaboration from both sides. The entire process has
been challenging for all parties involved, but we would not have reached a resolution without
the dedication and support of government, in particular the Department of Mineral Resources,
Department of Labour, the Labour Court, platinum producers and organised labour. It has been
a long and difficult journey but we have reached a reasonable outcome for all parties. However,
the protracted strike has underlined broader issues facing the industry, its workforce and mining
communities. We are committed to working with stakeholders to find solutions to address these
issues and to deliver sustainable benefit for all involved.”
For further information, please contact:
Media:
Mpumi Sithole
Tel: +27 (0)11 373 6246
mpumi.sithole@angloamerican.com
Investors:
Emma Chapman
Tel (UK): +44 (0)20 7968 8451
Tel (SA): +27 (0)11 373 6239
emma.chapman@angloamerican.com
Johannesburg
24 June 2014
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Notes to editors:
Anglo American Platinum Limited is a member of the Anglo American plc Group and is the
world’s leading primary producer of platinum group metals. The company is listed on the
Johannesburg Securities Exchange (JSE). Its mining, smelting and refining operations are
based in South Africa. Elsewhere in the world, the Group owns Unki Platinum Mine in
Zimbabwe and is actively exploring in Brazil. Anglo American Platinum has a number of joint
ventures with several historically disadvantaged South African consortia as part of its
commitment to the transformation of the mining industry. Anglo American Platinum is
committed to the highest standards of safety and continues to make meaningful and
sustainable difference in the development of the communities around its operations.
www.angloamericanplatinum.com
Anglo American is one of the world’s largest mining companies, is headquartered in the UK and
listed on the London and Johannesburg stock exchanges. Our portfolio of mining businesses
meets our customers’ changing needs and spans bulk commodities – iron ore and manganese,
metallurgical coal and thermal coal; base metals and minerals – copper, nickel, niobium and
phosphates; and precious metals and minerals – in which we are a global leader in both
platinum and diamonds. At Anglo American, we are committed to working together with our
stakeholders – our investors, our partners and our employees – to create sustainable value that
makes a real difference, while upholding the highest standards of safety and responsibility
across all our businesses and geographies. The company’s mining operations, pipeline of
growth projects and exploration activities span southern Africa, South America, Australia, North
America, Asia and Europe.
www.angloamerican.com
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