A man rides his bicycle past the Lonmin mine outside Rustenburg, northwest of Johannesburg. Picture: REUTERS
A man rides his bicycle past the Lonmin mine outside Rustenburg, northwest of Johannesburg. Picture: REUTERS

Mining giant Lonmin is the latest mining house to sign a three-year wage agreement with the Association of Mineworkers and Construction Union (Amcu).

This followed soon after Amcu reached a similar agreement with Anglo American Platinum.

At the end of the wage agreement with Lonmin‚ a rock drill operator at the company will earn R12‚296 (basic salary) and a guaranteed package of R19‚455.

The impact of the wage agreement for this bargaining unit is an increase of 7.8% in financial year one‚ 8% in financial year two and 7.1% in financial year three or an average of 7.6% over the three-year period‚ the company said.

The deal is effective from July 1 2016 to June 30 2019.

CEO Ben Magara said: "We have all worked hard to engage each other honestly and respectfully since the long strike of 2014 and this agreement illustrates the emerging maturity of the relationship between the company‚ employees and their union representatives."

He added: "Testament to this level of maturity is the reorganisation process that took place last year, which lowered our costs and took place without any labour disruption or work stoppages, as well as the current wage negotiation process, which has been concluded amicably. We must all now concentrate on improving productivity and reducing costs and ensuring a sustainable basis for future employment."

Amcu led the crippling platinum belt strikes of 2012 and 2014, demanding a monthly entry-level wage of R12‚500.

During Monday’s briefing on the new three-year agreement‚ Lonmin provided a breakdown of the basic agreed guaranteed packages for employees — noting that the figures excluded overtime and safe production bonuses‚ "which make up a significant part of employees’ wages".

TMG Digital

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