Bloomberg writes that platinum producers could use Sibanye-Stillwater’s pay settlement with gold mineworkers earlier this year as a benchmark in present wage talks, according to a person familiar with the matter.  

Following a five-month strike that was eventually declared unprotected, Sibanye agreed to increase the pay of workers at its three gold mines by 5.5%.  Sibanye’s agreement is apparently being viewed as a good proxy for what’s possible in the platinum industry as the cost structures are similar to deep-level gold mining.  Anglo American Platinum, Impala Platinum and Sibanye last week began the first round of wage negotiations with the sector’s biggest labor union, which is demanding an increase of as much as 48%.  While some producers have said that such a settlement would lead to job losses and mine closures, the Association of Mineworkers and Construction Union (Amcu) argues it’s justified as higher palladium and rhodium prices have boosted company earnings.  Amcu’s Jeffrey Mphahlele commented:  “The settlement in gold was just for gold.  Salaries are too low and we must create a balance, companies must come to the party and assist the people.”  The platinum wage negotiations are complicated by additional requests for higher medical aid and travel expenses, while Amcu has also revived a demand that its members’ pension funds be transferred by the companies to a fund the union founded.

• Read the full original of the above report at Mining Weekly

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