Lonmin headquarters
“’ no resolution
with AMCU
London, England — 27 May 2013

Platinum producer Lonmin plc has confirmed that no resolution was reached in its meeting with the Association of Mineworkers and Construction Union (AMCU) and the Commission for Conciliation, Mediation and Arbitration (CCMA) to find common ground on a new recognition agreement. Lonmin has accordingly requested that the matter be resolved through arbitration.

This means that both parties will present their respective views to the independent arbitrator and the CCMA will then make a ruling which is binding on both Lonmin and AMCU. This is part of the dispute resolution process prescribed by the Labour Relations Act.

“We are disappointed that we have been unable to find common ground but remain hopeful that the arbitration process will yield an outcome that is in everyone’s best interest. In the spirit of the peace accord signed by all parties, we urge everyone to allow the process to take its course peacefully and without incident,” said Lonmin acting CEO Simon Scott.

Lonmin has been trying to conclude a recognition agreement with AMCU in respect of the category 4-9 bargaining unit in accordance with its majority status, while at the same time acknowledging existing valid recognition agreements with other union parties.

In January 2013 Lonmin began negotiations with AMCU (and its other unions) to develop a new recognition agreement that would promote workplace democracy that is fair and proportionate.

On 21 May, the CCMA issued a certificate of non-resolution, meaning that no agreement could be reached. Lonmin and AMCU agreed to meet for a further session last week in a further attempt to find common ground before formal arbitration.

Source: Lonmin plc. For more information, click here.