25th Apr 2014 07:54
(Correcting Lonmin's estimate of the amount of lost wages from the strike, due to an error by the company.)
LONDON (Alliance News) - Lonmin PLC Thursday urged South Africa's Association of Mineworkers and Construction Union (AMCU) to accept its proposed pay increases for workers as a three-month strike which has crippled the nation's platinum mines remains unresolved.
The platinum sector in South Africa has been massively affected by strikes at mines owned by Lonmin PLC, Impala Platinum Holdings Ltd and Anglo American Platinum Ltd, as the AMCU attempts to achieve significantly better wages. No resolution has yet been achieved.
Anglo American Platinum is 80% owned by Anglo American PLC.
In a joint statement with the chief executives of Impala Platinum and Anglo American Platinum, Lonmin Chief Executive Officer Ben Magara said: "We strongly urge the AMCU leadership to take this fair settlement offer to their members and to let them decide. The producers have a duty to provide the details of the settlement offer to our employees and will do so forthwith."
In March, Lonmin said that negotiations over the action had been suspended after parties could not reach any kind of consensus following an offer by the major platinum producers to pay increases of between 7.5% and 10%.
For Lonmin workers the highest-paid workers would receive a 7.5% increase, while the lowest earners will receive an increase of 9.5%. For Anglo American and Implats employees, an increase of 7.5% for the highest-paid employees and an increase of 10% for the lowest earners has been proposed. The union in turn has been demanding increases of 30% or more.
At an annual general meeting Thursday, Anglo American said it remains in discussions to solve the situation but noted that in the future it plans to reduce the number of staff at its operations in the country by means of increased mechanisation.
Lonmin said to date, the strike has cost employees some ZAR6.4 billion in lost wages and the producers around ZAR14.5 billion in lost revenue.
By Anthony Tshibangu; [email protected];
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