Impala Platinum Agrees to Review Wages at S Africa Mine 09/11/2012 | 02:23am US/Eastern
By Devon Maylie JOHANNESBURG--Impala Platinum Holdings Ltd. (IMP.JO) said Tuesday that it had agreed to review the wages of workers at its Rustenburg mine following a meeting Monday with labor groups.
The meeting followed workers' demands for a second pay increase since April, and came amid heightened labor tensions at mines in South Africa. Workers at Lonmin PLC's (>> Lonmin Plc) Marikana platinum mine remain on strike for a fifth week, and say they won't return until their demand for higher wages is met. Police fired on striking Lonmin workers in August, leaving 34 workers dead.
"We believe that current tensions are an issue for the entire industry. Profitability margins continue to remain under severe pressure with consequences for all concerned," Impala Chief Executive Terence Goodlace said.
Impala is still trying to return to full production at Rustenburg, its biggest mine, following a six-week strike earlier this year. As part of the resolution to that strike, the company implemented a pay increase in April.
Now, Impala says worker committees have demanded a 10 percent pay increase for some jobs at the mine.
"Should this implementation be effected as per the demand, this would equate to a double increase within a period of six months," Mr Goodlace said.
Impala said it offered to conduct a full wage review to "commence as early as possible to ensure that all stakeholders' demands are considered and discussed in detail."
