Salary negotiations in the platinum mining sector stalled on Monday with Solidarity rejecting a 9% increase offer by Lonmin Platinum.
”Solidarity members are demanding 10% plus a housing subsidy of R5 500,” the union’s mining spokesperson, Reint Dykema, said in a statement.
The company’s three-year offer included an increase of CPIX plus 2% in the second year and CPIX plus 2% in the third year, he said.
It also offered a ”scarcity allowance” for technical trades of R2 300 for surface workers and R2 500 for underground workers.
”Solidarity is only interested in a one-year agreement,” said Dykema, adding that the days of three-year agreements are over, with the company unwilling to pay double digits for long-term stability.
Workers would be the losers under the company’s three-year offer, he said, explaining that worker inflation is at these levels at the moment.
”The company is doing very well. The annual report shows that operating profits have increased by 140,57% in the past financial year, and earnings per share by 222,08%.”
While the company wants a long-term agreement to bring it stability, it is not willing to offer an increase that will retain skills. ”This may cost it dearly in the long run,” Dykema cautioned.
Lonmin has yet to comment on the wage talks. — Sapa