South Africa's National Union of Mineworkers (NUM) has rejected a new pay deal from primary platinum producer Lonmin and claimed it may launch strike action at the miner's operations, Reuters reports.

In a statement, a spokesman for the NUM said Lonmin had offered to increase wages by 0.5 per cent, while the union is demanding an 11 per cent hike.

Also in dispute are housing allowances and medical aid subsidies for employees' children.

"The NUM has rejected these offers with the contempt it deserves and feel that it is moving towards industrial action at Lonmin," spokesman Lesiba Seshoka said.

Any strike action could derail the recovery in output achieved since previous industrial action at Lonmin's Karee operations in May.

In spite of that illegal strike, the miner hit its revised full-year sales target of 721,000 platinum ounces and is targeting sales of 750,000 oz in the 2011/12 financial year.

Talks between the world's third largest platinum producer and the NUM will recommence next Tuesday (November 22nd).

Source:

S.Africa union rejects Lonmin offer, eyes strike (15/11/11) 

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