Wage negotiations with Kumba Iron Ore deadlock - union

  • Reuters
  • Stock Market News
Wage negotiations with Kumba Iron Ore deadlock - union
Credit: © Reuters.

JOHANNESBURG, Aug 26 (Reuters) - South Africa's National Union of Mineworkers (NUM) on Wednesday said that wage negotiations with Kumba Iron Ore KIOJ.J , owned by Anglo American AAL.L , were deadlocked and the union had declared a dispute, a move that is one step short of a strike.

NUM, the majority union at Kumba, said the company had agreed a wage increase of 8% for the lowest-paid workers and 6.5% for the highest-paid workers but the two parties had disagreed over sick leave.

"The company policy on sick leave provides workers with 120 days. To our dismay, in a round of negotiations, the company wants to do away with the benefit," the NUM said in a statement.

The union's declaration of a dispute means that a protected strike could potentially go ahead if conciliation talks between the parties mediated by the Commission for Conciliation, Mediation and Arbitration fail to break the impasse.

Kumba, which has mining operations in the Northern Cape province and a port operation in Saldanha Bay, did not immediately respond to requests for comment.

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