Union leaders have signed a wage deal with South Africa's biggest platinum mining companies, ending the nation's longest-running strike.
The Association of Mineworkers and Construction Union (AMCU) has agreed deals with Lonmin, Impala Platinum and Anglo American Platinum. As a result workers' salaries will increase to 12,500 rand (£706.40) a month by 2017.
The AMCU's striking members will return to work on Wednesday.
The chief executives of the three mining firms said in a joint statement: "The road ahead remains a challenging one and it will take some time for our operations to resume full production."
The settlements differ slightly by company and staff category. However the basic salaries of the lowest-paid workers will broadly rise by 1,000 rand a month over three years and staff will also receive additional benefits such as pension, housing and health insurance.Workers will also receive back pay within seven days of returning to their jobs.
'Living wage' demands
The strike began on 23 January, when more than 70,000 workers downed their tools to demand a "living wage".
Unions sought an almost doubling of the basic pay for entry level workers from 5,000 rand (£264) to 12,500 rand per month as well as better benefits. AMCU announced that it had accepted a wage settlement and declared that the strike was officially over at a mass rally on Monday.
Joseph Mathunjwa, AMCU's president, addressed approximately 20,000 members at a sports stadium in Phokeng near Rustenberg. When asked whether the union should accept the offer, members chanted "sign, sign".
Platinum shock
The stoppage has affected 45% of the global supply of platinum and played a part in the contraction of South Africa's economy in the first quarter. Platinum is used in jewellery and for emissions-capping catalytic converters in automobiles, and South Africa holds around 80% of the world's known platinum reserves.
It is also the world's largest exporter of the precious metal, but five months of stoppages have crippled the country's platinum output, and severely impacted the economy.
Acccording to a website set up by the companies, the strike has so far cost the industry more than 24bn rand (£1.3bn) while employees have lost around 10.6bn (£590m) in wages.
bbc.com
The Association of Mineworkers and Construction Union (AMCU) has agreed deals with Lonmin, Impala Platinum and Anglo American Platinum. As a result workers' salaries will increase to 12,500 rand (£706.40) a month by 2017.
The AMCU's striking members will return to work on Wednesday.
The chief executives of the three mining firms said in a joint statement: "The road ahead remains a challenging one and it will take some time for our operations to resume full production."
The settlements differ slightly by company and staff category. However the basic salaries of the lowest-paid workers will broadly rise by 1,000 rand a month over three years and staff will also receive additional benefits such as pension, housing and health insurance.Workers will also receive back pay within seven days of returning to their jobs.
'Living wage' demands
The strike began on 23 January, when more than 70,000 workers downed their tools to demand a "living wage".
Unions sought an almost doubling of the basic pay for entry level workers from 5,000 rand (£264) to 12,500 rand per month as well as better benefits. AMCU announced that it had accepted a wage settlement and declared that the strike was officially over at a mass rally on Monday.
Joseph Mathunjwa, AMCU's president, addressed approximately 20,000 members at a sports stadium in Phokeng near Rustenberg. When asked whether the union should accept the offer, members chanted "sign, sign".
Platinum shock
The stoppage has affected 45% of the global supply of platinum and played a part in the contraction of South Africa's economy in the first quarter. Platinum is used in jewellery and for emissions-capping catalytic converters in automobiles, and South Africa holds around 80% of the world's known platinum reserves.
It is also the world's largest exporter of the precious metal, but five months of stoppages have crippled the country's platinum output, and severely impacted the economy.
Acccording to a website set up by the companies, the strike has so far cost the industry more than 24bn rand (£1.3bn) while employees have lost around 10.6bn (£590m) in wages.
bbc.com
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