Striking workers in South Africa have rejected Northam Platinum's improved pay offer, it emerged today (16th September).

The company has shut down its Zondereinde mine in Limpopo and is thought to be losing as much as 1,000 oz pgm per day after industrial action commenced last week.

Northam originally proposed an eight per cent wage hike and R1,700 living-out allowance for the 8,000 employees as part of a two-year deal.

However, the National Union of Mineworkers (NUM) has been demanding a 15 per cent increase, plus a living-out allowance of R3,500.

Northam improved its offer to 8.5 per cent after the two parties met for further talks under the guidance of the Commission for Conciliation, Mediation and Arbitration yesterday.

"The workers have rejected the offer, the strike continues," NUM's chief negotiator at Northam, Zwelitsha Tantsi, told Reuters.

"We are not going to lose this war. They may win the battle on (enforcement of) 'no work no pay' but they will lose the war."

Wage disputes are crucial to the South African pgm industry, as mining companies inevitably suffer production losses when their employees decide to down tools.

Sources:

Strike starting to bite Northam Pt (14/09/10)

S.Africa's Northam raises pay offer to end strike (15/09/10)

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