Lonmin's workers in South Africa have rejected a 6.5 per cent wage increase offer from the company, it emerged yesterday (20th October).

The National Union of Mineworkers (NUM) was originally hoping for a 25 per cent pay hike, but has now lowered its demands to 20 per cent following the latest negotiations.

Union spokesman Lesiba Seshoka revealed that progress has been made but that the 5,000 employees of the world's third-largest platinum producer are still seeking a better deal.

"There was some [positivity] that came out of the meeting and certain agreements were made, but wages and labour broking remain our top issues," he said.

"We will not settle for 6.5 per cent. They must pull up their socks and make a better offer."

Lonmin has agreed to offer the workers seven months' maternity leave and two days' study leave, while also reaching a settlement on the phasing out of sub-contractors.

However, there remains a considerable disparity over demands in the two areas deemed most important by the NUM and Mr Seshoka warned that strikes are a possibility.

"There appears to be serious contentions on the issue of labour broking which the company is adamant it will continue to use," he added.

"The issue of labour broking, like the issue of percentage on wages, is non-negotiable, so the stage for serious conflict is set."

According to reports, the next round of negotiations is set to take place tomorrow.

Lonmin was founded in the UK in 1909 and was initially known at the London and Rhodesian Mining Company.

Source:

NUM rejects 6.5 percent wage offer (20/10/09)

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