Lonmin is still locked in a dispute over pay with mining union Solidarity.

The two sides are set to begin mediation in order to solve the problem, which has been ongoing for some time, although Solidarity spokesperson Reint Dykema has insisted that industrial action is "not on the agenda" at this stage.

However, in a statement released by Solidarity, Mr Dykema warned: "If Lonmin does not take decisive steps to retain skills, it will continue to fall short of ambitious production targets."

At present, Lonmin has offered the union's workers a two-year agreement that would provide a nine per cent increase during the first year, followed by a rise of consumer price index (CPIX) plus two per cent during the second year.

However, Mr Dykema claimed that the workers' actual cost of living is in fact higher than CPIX figures indicate, meaning that such a rise is not sufficient.

Solidarity is holding out for a ten per cent increase in the first year, together with a R5,500 subsidy for its members.

Sources:

Lonmin, union at odds over salary increases, 16/11/07
http://www.miningweekly.co.za/article.php?a_id=121443

Lonmin, 16/11/07
http://www.miningmx.com/wts/677380.htm

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