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Amcu's additional demands 'unaffordable'

Platinum producers have deemed additional demands by the union as unrealistic.

FILE:The world's top three platinum producers have deemed additional demands by Amcu as unrealistic. Picture: Vumani Mkhize/EWN.

JOHANNESBURG - The world's top three platinum producers say the Association of Mineworkers and Construction Union (Amcu) has responded to its in principle agreement with additional demands which they've deemed unrealistic.

The companies say they'll continue negotiations with the union to end the crippling industrial action.

It's understood the union is also seeking a once-off cash payment to its members and increases in living out allowances.

Anglo American Platinum (Amplats) spokesperson Mpumi Sithole says the demands are unaffordable.

"Their response contains a series of material and unaffordable demands which go beyond the principle settlement agreement."

She says the company will continue to meet with Amcu leadership today.

Amcu members at Lonmin, Impala Platinum (Implats) and Amplats went on strike in January demanding an entry level salary of R12,500.

The strike has already had a negative impact on the country's economy and investor confidence and has been mentioned by ratings agency Standard & Poor's as one of the reasons South Africa's credit rating was downgraded.

South Africa is home to 80 percent of the world's known platinum reserves.

Meanwhile, Mineral Resources Minister Ngoako Ramatlhodi said on Tuesday that he's confident a wage agreement between Amcu and platinum producers will be signed soon.

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