NUM, Amplats reach 2-year wage deal

South Africa's National Union of Mineworkers (NUM) said on Thursday it had agreed a two-year wage deal for pay increases of 7.5 to 8.5 percent with Anglo American Platinum, the world's top producer of the precious metal.

NUM's rival the Association of Mineworkers and Construction Union (AMCU), which became the majority union at Amplats last year during a bitter turf war for members, remains deadlocked in wage talks with the company.

NUM spokesman Lesiba Seshoka told Reuters his union had been taking back members in recent months but could not provide an exact percentage for its representation at Amplats.

Officials at Amplats, a unit of global mining group Anglo American, were not immediately available for comment.

NUM's agreement throws down a challenge to its enemy AMCU to deliver results. Seshoka said the increases, which are above the current inflation rate of 5.3 percent, applied only to NUM members.

AMCU officials also could not be reached.

Under the battle cry of a "living wage," AMCU has been pushing for a minimum monthly wage of 12,500 rand ($1,200) for entry-level workers from Amplats and rival Lonmin - more than double current levels. It is also seeking big increases from Impala Platinum.

Companies say they cannot afford big pay hikes as they grapple with low prices and high costs which have made half of the industry's shafts unprofitable, according to analysts.

AMCU emerged as the dominant union on South Africa's platinum belt last year after it wrested tens of thousands of members from the once unchallenged NUM in a violent struggle for members in which dozens of people were killed.