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UPDATE 2-South Africa's AMCU union reaches tentative wage deals with platinum trio

Fri, 21st Oct 2016 14:02

* AMCU says deals still need final members' approval

* Terms of the deals not disclosed

* AMCU lead 5-month platinum strike in 2014 (Recasts with AMCU president comments)

By Ed Stoddard

JOHANNESBURG, Oct 21 (Reuters) - South Africa's AMCU unionhas reached wage deals in principle with platinum producersAnglo American Platinum, Impala Platinum andLonmin, subject to final approval from its members, theunion's president said on Friday.

This means a strike has almost certainly been averted inSouth Africa's platinum sector, which is still recovering from acrippling five-month stoppage led by the Association ofMineworkers and Construction Union (AMCU) in 2014.

"What our members have been demanding has been secured fromthe companies," AMCU President Joseph Mathunjwa told Reuters,without elaborating.

Asked if AMCU had an agreement in principle with the threeproducers, Mathunjwa responded: "Yes, subject to a mass meetingof general members to confirm it again."

He said the meeting would be held on Oct. 30 and AMCU woulddisclose more details at a press briefing next week.

Known for its militancy and strident tone, AMCU had publiclysought wage increases of about 50 percent compared with offersin the single digits from the employers. It is not clear if AMCUwatered down its demands to reach agreements.

Earlier AMCU said in a statement that it had received its"members' mandate", which is union speak for their agreement, onwages at the trio of companies while Lonmin confirmed it had reached an agreement "in principle" with the union.

However, Amplats said on Friday that "wage negotiations areprogressing well" and it could "comment further in due course".

Sibanye Gold will be relieved at a wage deal as itis set to take over Amplats' labour-intensive Rustenburgoperations, which is where the company's AMCU membership isconcentrated.

AMCU dislodged the once dominant National Union ofMineworkers (NUM) on South Africa's platinum belt in a turf warthat triggered violence in which dozens were killed. It is alsotrying to grow its membership in the gold sector.

Heading off a strike is rare good news in the mining sectorin South Africa, where investors have been rattled by labourunrest, policy uncertainty and generally depressed prices.

Platinum prices rallied in the third quarter of this yearbut have since cooled and spot platinum is now only about 4.5percent higher so far this year and below $930 an ounce.

Many shafts in South Africa remain loss-making at suchlevels and companies have said they cannot afford big pay hikes.

But a drought has fuelled food price inflation, which wasrunning at 11.3 percent in September, and this in turn impactswage demands as the average South African miner typically hasseveral dependants he or she needs to feed. (Reporting by Tanisha Heiberg and Nqobile Dludla inJohannesburg and Zandi Shabalala in Istanbul; Editing by SusanThomas)

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