A mediator has been appointed to help advance wage negotiations between Lonmin Platinum and the Solidarity trade union, it has been announced.

The mediator has been enlisted after the two parties failed to reach agreement and will commence work on November 29th at the designated meeting place at Mooinooi, near Rustenburg, the union's spokesperson Reint Dykema said.

Solidarity has rejected Lonmin Platinum's offer of an eight per cent rise in the second year on the grounds that it does not take into account increased living costs in South Africa.

Mr Dykema told Mining Weekly: "The high food and rent inflation makes it difficult for us to give our blessing to an eight per cent increase."

However, Mr Dykema did suggest that the offer of a nine per cent rise for the first year was acceptable and that the union was seeking a similar increase for the second year.

News of developments in the negotiations comes after Lonmin Platinum has suffered difficult trading conditions in the past 12 months, including spates of industrial action and reduced recoveries from its concentrators.

Source:

Lonmin, union to meet with mediator over pay, 26/11/07
http://www.miningweekly.co.za/article.php?a_id=122101

Lonmin Platinum looks to reorganise - 23/11/07
http://www.platinum.matthey.com/media_room/1195826437.html

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