NORTHAM: 6,777 +77 (+1.15%)
Northam Platinum, South Africa's NUM union sign 3-year wage deal
JOHANNESBURG, Oct 2 (Reuters) - South Africa's National
Union of Mineworkers (NUM) has signed a three-year wage deal
with platinum producer Northam Platinum that secures
wage hikes of more than double the inflation rate for its
members, the union said on Tuesday.
Depressed prices and rising costs mean South African mining
companies have scant room for big wage hikes but unions maintain
the increases come off a low base rooted in the country's
apartheid past when the black labour force was exploited and
NUM said in a statement that the increases for the
lowest-paid underground workers would be 1,000 rand ($69.00) per
month in 2018, with raises of 1,100 rand and 1,200 rand a month
over the next two years.
According to Reuters' calculations this works out to
increases of just under 11 percent annually, compared with an
inflation rate of 4.9 percent.
Northam is in better shape than most of its peers, boosted
by high grades and a swing to mechanisation.
Its annual operating profit rose by more than 34 percent to
823 million rand for the year to June 30 although preference
share dividend arrangement meant it posted a loss.
($1 = 14.4100 rand)
(Reporting by Ed Stoddard; editing by Jason Neely)
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