RBM cuts deal with miners

03 September 2010 - 08:22
By Reuters

RICHARDS Bay Minerals (RBM), a Rio Tinto and BHP Billiton joint venture, said it had tentatively agreed on a pay deal with workers yesterday to end a week-long strike.

RBM spokesperson Nthabiseng Motsepe said it was still unclear when the workers would return to work.

"The strike has stopped and we are just trying to see when workers will return to work. A meeting is currently on to finalise the nitty-gritty," she said, but could not give further details.

National Union of Mineworkers (NUM) spokesperson Lesiba Seshoka said RBM had improved its pay offer for 2011 and 2012 but that a decision was yet to be taken by the union whether to accept the offer.

Seshoka said Richards Bay Minerals had stuck to its eight percent wage offer for 2010 but proposed an average 8,5 percent pay rise for the following two years, up from its previous eight percent offer, depending on the rate of inflation in South Africa.

South Africa's inflation rate slowed to a four-year low of 3,7 percent in July.

Separately Northam Platinum, which produced 321 475 ounces of platinum group metals (PGMs) in the year to end-June, said a planned strike by NUM members could hurt its production.

"(Northam) is considering its position. The union's demands are rather high," spokesperson Marion Brower told Reuters.

"It (strike) will have an impact on production, depending on how long it lasts," she said.

Northam has offered workers an eight percent increase on a two-year deal. The NUM is demanding a 15 percent wage rise.

NUM says it represents 8 000 miners out of Northam's 8 600 total workforce. Northam says the union represents 80 percent.