Lonmin, AMCU Reconcile in Time for Wage Talks

The Globe and Mail reported that Lonmin plc (LSE:LMI) and South Africa’s Association of Mineworkers and Construction Union (AMCU) have signed a recognition accord. In doing so, the two bodies have averted the union’s threatened strike action and cleared the way for upcoming wage talks.

As quoted in the market news:

While the deal heads off a potential strike over recognition, the pay talks are expected to be extremely tough, given AMCU is demanding pay hikes as high as 150 per cent from Lonmin rival Anglo American Platinum, the world’s top producer of the precious metal.

Members of AMCU, which claims most of Lonmin’s workforce, have twice this year staged brief illegal strikes at its mines and had threatened to down tools again unless the company recognised it as the dominant union.

The agreement formally recognises AMCU as the majority union at Lonmin, the world’s third largest platinum producer.

Click here to read the full report from The Globe and Mail.