Solidarity and Lonmin butt heads in wage negotiations

By Celeste Ganga
16 October 2007

Salary negotiations between the trade union Solidarity and the platinum producer, Lonmin, ended in a predicament on Monday when the trade union rejected the company’s offer of a 9% increase.

“Solidarity members are demanding 10%, plus a housing subsidy of R5 500. A scarcity allowance for technical trades amounting to R2 300 for surface workers and R2 500 for underground workers was also offered in an attempt to retain skills,” says spokesperson for Solidarity Mining, Reint Dykema.

Dykema explains that the company (Lonmin) is doing very well. He goes on to say that operating profits have increased by 140,57%, in the past financial year and earnings per share by 222,08%.

“Housing is a huge problem at Lonmin, and it is being exacerbated by the numerous mines being opened in the Rustenburg area and the tremendous development. It is open season for artisans and companies that don’t go the extra mile in their remuneration, will lose their skilled workers,” says Dykema.

Dykema adds that Lonmin is apparently not aware of the scope of the crisis. “The company wants a long-term agreement that will bring it stability, but is not willing to offer an increase that will retain skills.”

“This may cost it dearly in the long run,” Dykema cautioned.