Platinum producer Lonmin's plans to lay off 318 workers have incurred the wrath of South Africa's Solidarity Union.

The union has announced that it is in dispute with the miner over the plans, which means that a mandatory mediation process must now take place before any strike action can be called.

A statement from the Solidarity Union claims that Lonmin is seeking to improve efficiency by installing a new computer system and by centralising its services department, and suggests that it is these moves that are resulting in the redundancies.

Lonmin, the third largest platinum producer in the world, announced last month that it would produce around 910,000 ounces of platinum over the year to September 30th, but the potential for strike action could have a serious impact on any future production.

A Lonmin spokeswoman told Reuters that she could not comment on the announcement, as she had not yet seen the statement from the Solidarity Union.

Last month a strike by the National Union of Miners (NUM) was avoided at Angloplat operations, following protracted negotiations to deliver an increased wage deal for the workforce.


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