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Sunday, 16 September 2012 - Lonmin rejects higher pay demand, promises new approach |
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See the best of Reuters photography.  See more | Photo caption  Dancing horses Lipizzaner horses spend their summers in the Austrian mountains, before returning to train as dancing horses.  Slideshow  Will & Kate's Asia tour The royal couple are on a nine-day tour of Southeast Asia and the South Pacific.  Slideshow  Lonmin rejects higher pay demand, promises new approach Tweet Share this Email Print Related News South Africa police fire tear gas at strikers near massacre site Sat, Sep 15 2012 Striking South African miners reject Lonmin pay offer Fri, Sep 14 2012 South Africa mine protests hit top world platinum firm Wed, Sep 12 2012 ANC rebel calls for national mine strike in South Africa Tue, Sep 11 2012 Lonmin strikers march as South Africa mine unrest spreads Mon, Sep 10 2012 Analysis & Opinion Witness to the Lonmin shootings Related Topics World » A man holds a stone as he runs across the road as police approach at Lonmin's Marikana mine in South Africa's North West Province September 15, 2012. Credit: Reuters/Siphiwe Sibeko By Olivia Kumwenda JOHANNESBURG | Sun Sep 16, 2012 10:16am EDT JOHANNESBURG (Reuters) - Lonmin, due to resume talks on Monday with strikers at its Marikana platinum mine in South Africa who rejected a pay rise offer last week, insisted it could not meet the workers' demands but promised a new approach in labor relations. Acting Chief Executive Simon Scott said the deaths at the mine of protesters, 34 of whom were shot dead by police on August 16, had been a 'wake-up call' for the company and it was committed to ending the five-week labor unrest in which a total of 45 people have been killed. In an opinion piece published in the Sunday Times newspaper, Scott said Lonmin would improve discussions with strikers although it could not afford to meet their higher wage demands. "For Lonmin, the starting point is to acknowledge that our company must go through a process of self-reflection," Scott said. "What I can promise is that we are committed to playing our part. We have had our wake-up call, as has the rest of South Africa." "Clearly, one of the issues we need to reflect on is how we find balance between protecting the business, and the jobs dependent upon it, on the one hand and how we respond with sensitivity to the complex situations that Lonmin is at the center of," Scott said. On Friday workers at the mine dismissed the company's offer as way below the 12,500 rand ($1,500) a month sought by members of the militant Association of Mineworkers and Construction Union (AMCU), which is challenging the influence of the more established National Union of Mineworkers (NUM). UNREST SPREADS The dispute at Marikana has been at the heart of unrest, in which a total of 45 people have been killed, that has spread through the platinum sector in South Africa, the world's top producer of the metal, rattling Africa's biggest economy. The labor unrest has also highlighted a power struggle within the country's ruling African National Congress (ANC). ANC rebel Julius Malema has seized on it to return from the political wilderness, urging strikers to make mines "ungovernable". South Africa's elite police unit, the Hawks, said it was investigating a case against Malema, opened by trade union Solidarity early this month, of incitement of violence and intimidation. "That case has been referred to us and we are currently investigating," Hawks spokesman MacIntosh Polela said. "We are not going to narrow it to Marikana. We are just going to look for evidence of this incitement, aspects of it are going definitely to be Marikana." The rand fell 3 percent on Wednesday as the unrest engulfed Anglo American Platinum, the biggest miner, and ripples began to reach the bond market. On Friday police fired teargas and stun grenades to disperse another group of striking miners at an Aquarius Platinum plant. Scott, who has been acting chief executive while Ian Farmer has been on sick leave since last month, reiterated the company's position that a 12,500 rand monthly wage would put thousands of jobs at risk and challenge the viability of the business. "In stark financial terms, this would cost 2.3 billion rand," he said. The company is offering increases of between 9 percent and 21 percent. In a statement on Sunday it denied a report by NUM that it had improved its key offer to rock drill operators, who are at the centre of the unrest. NUM said on Saturday Lonmin had raised the offer to these workers from an earlier proposal of 900 rand, but the company said it had already been offering them a rise of over 1,800 rand a month, excluding bonuses. The price of platinum, used in jewelry and vehicle catalytic converters, has risen more than 20 percent since the Marikana shootings amid fears of disruption to supplies. Even though the Lonmin wage offer was rejected, its shares rose 5.5 percent on Friday on the back of another jump in the platinum price following the announcement of U.S. economic stimulus measures. Lonmin has said its talks are to resume at 0800 GMT on Monday. (Reporting by Olivia Kumwenda; editing by David Dolan and Anthony Barker) World Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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