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
Implats confirms that discussions with the Association of Mineworkers and Construction
Union (AMCU), Anglo American Platinum Limited (Amplats), Impala Platinum Limited
(Impala) and Lonmin PLC (Lonmin), being facilitated by the Commission for Conciliation,
Mediation and Arbitration (CCMA), have unfortunately not managed to secure a resolution to
the industry wage dispute and these discussions have been adjourned.
Terence Goodlace, CEO of Implats says: “While we acknowledge AMCU’s revised demand
to achieve R12,500 in basic salary over four years, this still represents an increase of 30% in
year one and remains completely unaffordable to Impala, and the industry. We remain
committed to finding an affordable and sustainable solution for all stakeholders, specifically
our employees, but also our suppliers and other close associates in the Rustenburg area.”
The strike at Implats’ Rustenburg operation has continued for nearly six weeks in which time
the Company has lost approximately 90 000 ounces of platinum production. This equates to
around R2 billion in revenue lost (calculated at the current basket of metal prices).
Mr Goodlace added: “The industry’s proposed increase in wages and benefits of some
R2 billion in the first year alone for the three companies combined, which remains fair
considering the current environment where the industry has reported a cash loss of
approximately R4.3 billion in 2013.”
At Impala, this offer represents a monthly guaranteed pay package of 26% over three years,
increasing 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. We call on all our employees to seriously consider this offer in the interests of the
sustainability of our industry, and to secure their jobs. A return to work is critical before
permanent structural changes become inevitable.
Shareholders will be kept informed as the process evolves.
5 March 2014
Sponsor to Implats
Deutsche Securities (SA) Proprietary Limited
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