On Thursday, Lonmin received a memorandum from the Association of Mineworkers and Construction Union (Amcu) at their head office in Johannesburg, prompting CEO Ben Magara to appeal to the union to consider “economic realities.”
“The industry cannot afford to meet AMCU’s demands. But, if it did, by choosing expedience above all other considerations, this would spell the demise of many operations across the industry, it would drastically reduce jobs, and decimate our communities. Who really stands to gain? And is this what our employees really want? I truly believe it is not,” Magara said.
“Every day this strike lasts means R67 million not spent directly on goods and services by the mines themselves. This translates into a direct loss to the country’s economy as a whole. And the loss is multiplied as we move further down the supply chain. The same goes for the R88 million not paid daily in wages.
“In conclusion, I wish to extend a hand to AMCU and say, we remain committed to negotiating within our settlement zone in good faith. It is however imperative that the economic realities are taken into account during this process to safeguard our Company and the industry. We know that there is much to be done in our industry to improve the lives of our mineworkers. But, we can only do that if we are working.
“Our offer is waiting to be accepted. It is almost 4% above inflation and is higher than what employees would earn doing similar work in any other sector of South Africa. Let us work together to deliver the future that our employees and your members want and deserve.”
Lonmin asks Amcu to consider “economic realities”
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