[miningmx.com] — THE demand for a R12,500 a month salary is
unsustainable and will cause some workers to lose their jobs so that the remainder
can earn that much, according to Lonmin CEO Simon Scott.
The strike entered its sixth week on Monday with news that the parties are starting to
move closer to an understanding.
Scott on Friday declined to speak on specifics of the negotiations, citing the
sensitivities at this stage, but he expressed optimism that a settlement could be
reached soon.
“We are pleased to be sitting around the table and engaging in substantial issues. The
process seems to be moving forward.
“We are focused on resolving the issues and we have come to understand them better
and we will be able to respond to them better. We are not contemplating a scenario
where we don’t find a solution. The consequences are already so high,’ said Scott.
“The longer the situation continues, the more it affects Lonmin, the South African
economy and the workers. There is no deadline, but we are committed to the process
and we have moved somewhat in the last week,’ said Scott.
Speaking to City Press, Scott defended the salaries paid to miners, saying
that they were in line with what the industry paid.
He said that the salary and skills gaps between workers and top executives were also
a function of structural problems in the South African economy.
“It is a South African issue, not a mining industry issue. It is something that needs to
be addressed.’
Speculation in the mining industry has been that Lonmin’s financiers would get even
grumpier because the already underperforming mine’s labour woes compound an
already challenged platinum market.
The company has a debt facility of almost R1 billion.
“They understand that the last four weeks have been an anomaly, something out of
the ordinary. We have to take on the challenges and we are committed to finding a
solution.
“We never said that we would retrench staff or close shafts. We said that we would be
reducing our capital expenditure from $450m (R3.7bn) to $250m. Capital expenditure
tends to create jobs. The reduction will therefore have an impact on new jobs.’
Scott said that at this stage, the company was not focused on whether to change its
strategy as a result of the strike.
“Our primary aim is to resolve this impasse and get back to work. That for us is the
bigger issue.’
– City Press
