Lonmin's latest pay rise offer to members of Solidarity has been rejected, the South African trade union confirmed on Friday (23rd October).

The world's third-largest platinum producer has proposed a 7.5 per cent wage increase, but the union insisted that it will not move from its target of securing a ten per cent hike.

Solidarity also revealed that Lonmin officials have refused to agree to a 'market-related' deal on housing allowance, instead offering a rise equal to the increase in basic pay.

"The offer made by management is unacceptable and significant adjustments will have to be made to the offer before negotiations resume," read a statement from the union.

Lonmin is currently having difficulties at its South African operations, having seen the National Union of Mineworkers reject a separate 6.5 per cent wage rise offer last week.

However, Solidarity did confirm that it has agreed on a nine per cent pay increase with Northam Platinum, which is a subsidiary of Mvelaphanda Resources.

Wage negotiations in South Africa - which supplies the majority of the world's platinum - are crucial to the pgm industry as strike action seriously impacts production levels.

Sources:

S.Africa union rejects Lonmin wage rise offer (23/10/09)

DJ South African Labor Union Solidarity Rejects Lonmin Pay Offer (23/10/09)

© Adfero Ltd