21st Jan 2014 18:43
LONDON (Alliance News) - Lonmin PLC Tuesday said it was committed to further engagement with the Association of Mineworkers and Construction Union ahead of a strike on Thursday that is set to cripple the whole platinum mining industry in South Africa.
Earlier this week, the firm said it had been given notice by the union that a strike will take place on Thursday after wage talks between the two sides broke down.
In a joint statement with the chief executives of Impala Platinum and Anglo American Platinum, Lonmin Chief Executive Officer Ben Magara said all three firms felt the union's current wage increases are unaffordable and unrealistic and the promises the union has made to employees "cannot be delivered upon"
"Strike action will not only hurt the platinum industry but will be to the detriment of employees and their families, to communities, and to the country as a whole," the firms said in the joint statement.
The firms said the offers on the table from the three companies range from a pay increase of 7.5% to 8.5% depending on pay grade. The firms have also pledged to increase accommodation and other allowances.
"In 2012 and 2013, our companies lost a combined 879,400 ounces of production as a result of strike action. This translates into revenue losses of around RND12.54 billion," the statement said.
"We estimate that employees were forced to forego wages of around RND1.18 billion, excluding bonuses and other benefits which they were then not able to earn. Furthermore the platinum price has plunged by 19% over the past three years, while costs continue to rise," it added.
The companies blamed these factors for a reduction in the combined industry workforce from more than 145,000 to less than 134,000 in the two years from December 2011 to December 2013.
"This is a time when the industry can ill afford further losses of production and jobs due to strike action," they said.
Lonmin shares closed at 316.40 pence Tuesday, down 9.00 pence or 2.8%.
By Anthony Tshibangu; [email protected];
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