Lonmin has increased the wages of its South African workers by 9.5 per cent, Dow Jones Newswires confirmed today (26th November).

The world's third-largest platinum producer had been locked in pay negotiations for several weeks, with unions holding firm on their demands for a substantial rise.

However, Jacob Kleynhans, spokesman for Solidarity, confirmed that the two parties have agreed to backdate the hike to October as part of a new one-year deal.

In addition, the new arrangement includes plans to incorporate a single bonus system which would cover all aspects of workers' incentives and bargaining units.

Mr Kleynhans told the news provider: "The implementation of a single system will eventually ensure that there is no unfairness in the application of the bonus system.

"The new system must be finalised in the first half of 2010."

Wage disputes in South Africa are watched closely by the pgm industry, as any strike action resulting from a collapse in talks inevitably impacts on production levels.

Lonmin announced recently that its platinum sales declined by six per cent to 682,995 oz over the course of the 2009 financial year.

Source:

Lonmin To Increase South African Workers' Wages 9.5% - Union (26/11/09)

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