Hot Features
Premium
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
The world’s second largest supplier of platinum, Impala Platinum Holdings Limited (LSE:IPLA), is now facing a new demand of wage increase from its workers, the company confirmed today.
In a statement, the producer of 25% of the world’s platinum group of elements supply said it has received another wage increase demand from the Interim Workers Committee (IWC) at its Rustenburg mine in South Africa and is now in the middle of holdings talks with all stakeholders “to find a sustainable resolution as quickly as possible.”
Implats’ spokersperson Johan Theron first told the story on Sunday to the Associated Press saying the workers at the company’s flagship mine is now asking another 10% wage increase, two months earlier than the agreed deal forged back in April 2012.
Chief Executive, Terence Goodlance, stated this demand has already been met last April 2012, as part of the settlement that ended the six-week strike that caused a loss of jobs and at least a life, with Implats reporting a loss of about £212.8 million (ZAR2.8 billion) back in February – March.
“Should this implementation be effected as per the demand, this would equate to a double increase within a period of six months,” Mr. Goodlance said.
Industry Attack
South African mining industry has been under attack from within as labour unrest spreads across companies drilling in the country’s natural resources rich territory.
Last month, violence ensued over at Lonmin, world’s third largest producer of the jewelry material, also linked to demands of pay increases that prompted South Africa’s president, Jacob Zuma, to leave a conference to deal with the conflict that left 44 dead.
“We believe that current tensions are an issue for the entire industry,” Mr. Goodlance stated.
The company, however, is going proactive and is now resorting to diplomacy in dealing with the issue, mindful of the negative impact the first outcry for wage increase brought to the company’s financials.
The six-week strike earlier this year resulted in a 21% reduction of platinum production and an increase in cost by 24%, dissolving 40% of gross profit and net profit falling to 37%, according to Implats’ 2011-2012 full year results.
“Our overriding imperative in this process is to ensure peace, order and stability,” Mr. Goodlance continued saying. A full wage review was offered by Implats to the IWC to consider all of stakeholders’ demands.
“We are therefore actively engaging all stakeholders at the highest level as a sustainable solution can only be delivered through the collaborative efforts of all parties, at all levels.”
Shares of Impala Holdings are trading on ex-dividend between 10th – 17th September 2012.
