Industrial Action Update -CCMA mediation process
IMPALA PLATINUM HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/001979/06)
JSE Share code: IMP
ADR code: IMPUY
(“Implats” or “Company”)
Industrial Action Update
CCMA mediation process
Talks between the platinum sector and the Association of Mineworkers and Construction
Union (AMCU), facilitated by the Commission for Conciliation, Mediation and Arbitration
(CCMA), has, unfortunately, not managed to secure a resolution to the industry wage
dispute with AMCU members.
Terence Goodlace, CEO of Implats says: “We are disappointed that we have not been able
to resolve the current platinum industry wage strike. We are, however, committed to
engaging further with AMCU and are determined to find a solution that will allow better
wages and benefits for our employees, preserve jobs and ensure the survival of our
The strike at Implats’ Rustenburg operation has continued for four weeks in which time the
Company has lost 22 working days and 2 800 ounces of platinum production per working
day. This equates to approximately 61 600 ounces platinum in total, which at R22 500 an
ounce, amounts to R1.38 billion in revenue lost (calculated at the current basket of metal
The CCMA mediation process brought together the negotiating teams of AMCU and the
platinum producers, Impala Platinum Limited (Impala), Anglo American Platinum Limited
(Amplats), and Lonmin PLC (Lonmin) under the auspices of the CCMA.
The platinum producers tabled a revised wage offer to AMCU members on 29 January 2014
based on a set of principles that would ultimately realise a minimum guaranteed pay
package of R12 500 per month over time. This offer represents an increase in wages and
benefits of some R2 billion rand in the first year alone for the three companies combined.
The revised offer has to be viewed in the context of an industry having reported a cash loss
of approximately R4.3 billion in 2013.
Impala has offered to increase the minimum monthly guaranteed pay package by 26% over
three years. This would increase the minimum guaranteed package for surface employees
from R8 641 to R10 915 and for underground employees from R9 297 to R11 746
respectively over the three-year period.
Implats is in constant communication with all its stakeholders to ensure they remain informed
of the situation and can implement the necessary mitigating measures to manage the impact
of the strike.
21 February 2014
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited
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