JOHANNESBURG (miningweekly.com) – Trade union Solidarity on Thursday reported that it had rejected platinum miner Lonmin’s opening wage offer for the next four years, stating that the offer was not in keeping with the actual inflation pressure its members were under and did not compensate them for their contribution in respect of production.

Lonmin had offered a 6% yearly increase for skilled employees and a 7% yearly increase for entry-level workers, and Solidarity was calling on Lonmin to provide considerably better salaries to its skilled employees and to scrap the proposed four-year wage agreement.

The union also said that Lonmin had failed to respond to its other substantive demands.

“Further, we also appeal to our members to have realistic wage expectations. A balance must, therefore, be struck between our members’ wages considering the value they add on the one hand and the sustainability of the company and the platinum industry on the other hand,” Solidarity general secretary Gideon du Plessis said.

He added that, despite the low wage offer, the union commended Lonmin for the initiatives that it had introduced to support its employees.

“This support includes, besides others, [assistance in terms of] garnishee orders; the provision of financial literacy training to employees; the revision of the leave and shift systems, making it possible for migrant workers, in particular, to spend more time with their families; the implementation of an employee share scheme; a dramatic reduction in the use of labour brokers; and the upgrading of hostels to family units,” Du Plessis said, adding that all these issues had contributed to the labour unrest that broke out at Lonmin last year. 

Further, according to Du Plessis, the instability in the labour relations environment over the past 16 months had caused the loss of 6 000 potential jobs at Lonmin, as the company was no longer able to reopen the K4 shaft in Marikana owing to financial reasons.

“Solidarity, therefore, also calls on the other unions and Lonmin employees to approach the negotiations with great prudence and to attach more importance to long-term goals that would be to all stakeholders’ benefit [rather] than short-term, strategic trade union objectives,” he said.

However, he added that indications were that the negotiations at Lonmin would deadlock prematurely and that Solidarity would meet with its members to obtain a mandate.

Solidarity and other minority trade unions’ recognition was revoked at Lonmin, in August, when the company signed a recognition agreement with the Association of Mineworkers and Construction Union. Solidarity initially reacted by announcing a six-point plan to dispute the cancellation of the unions’ recognition.

Since then, Solidarity and Lonmin had committed to constructive negotiations to restore minority unions’ recognition.