JOHANNESBURG (miningweekly.com) – Trade union Solidarity has rejected the initial 7,5% wage increase made by South African platinum producer Lonmin.

At the first round of wage negotiations, Lonmin also offered a percentage increase equal to an agreed wage increase on employees’ housing allowance, the union said in a statement.

However, Solidarity was still demanding a 10% increase for miners, artisans and officials as well as a market-related increase in employees’ housing allowance.

Solidarity spokesperson Jaco Kleynhans said that the offer made by management was “unacceptable” and said that significant adjustments would have to be made to the offer before negotiations resume for the second round on October 27.

Solidarity’s rejection of the Lonmin offer came shortly after the National Union of Mineworkers (NUM) rejected a 6,5% wage increase made by the platinum producer, during the first round of wage negotiations.

Lonmin had raised its initial offer of 5% to 6,5%, while the NUM had lowered its initial demand of a 25% across-the-board increase, to a 20% across-the-board increase.

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