S African union denies platinum wage talks breakdown

JOHANNESBURG, Feb 6 (AFP): South Africa's radical worker group AMCU said Thursday that salary negotiations were still on track two weeks into a massive strike at the country's platinum mines, contradicting an announcement by producers that the talks were deadlocked.

Around 80,000 mineworkers and their employers have been at loggerheads over massive wage hike demands despite attempts by independent mediators to broker a deal.

But the Association of Mineworkers and Construction Union (AMCU) said negotiations had merely adjourned for a discussion period.

"The talks have not broken down," AMCU treasurer Jimmy Gama told AFP. "The CCMA (Commission for Conciliation, Mediation and Arbitration) requested that we give them some time to reflect on our presentations. So they will be calling the parties in due course to reconvene the meetings." AMCU members downed tools on January 23 demanding a basic wage of 12,500 rand ($1,125) -- more than double the current entry-level salary.

The mine companies have offered a seven per cent raise, saying they could not afford more and accusing the union of failing to compromise.

Three top producers-Anglo American Platinum, Impala Platinum and Lonmin-said Wednesday the talks had ended "as the parties have been unable to reach a settlement".

But Gama said the union had scaled down its demands, notably dropping calls for increases in various allowances such as housing. Members had also suggested the pay increase could be gradually implemented over two years, he added.