Lonmin has been warned that it faces the possibility of strikes if it does not respect wage negotiations for its workers in South Africa, the Times Live reports.

The world's third-largest platinum producer has offered its employees a five per cent pay rise, but the National Union of Mineworkers is holding out for a 25 per cent hike.

Eric Gcilitshana, the union's Chief Negotiator with Lonmin, revealed that although industrial action is not desired, it could ensue if the company does not compromise.

"We are capable of fighting and going on strike. They know it. We do not want to do that. We believe negotiation is the most powerful weapon," he told the news provider.

Lonmin Chief Operations Officer Mahomed Seedat countered that the offer - described by the union as a "mere pittance" - has been influenced by the current platinum price.

The second round of negotiations between the two parties is now set to take place today (19th October).

Wage talks play a key role in the South African pgm industry because if they collapse and strikes follow, production is inevitably impacted.

Source:

Wage talks at Lonmin (18/10/09)

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