Lonmin reveals details of wage agreement with unions

Lonmin Plc (Lonmin) is today pleased to release details of the two-year wage agreement signed with the National Union of Mineworkers (NUM) last Friday evening.

In the first year of the agreement, which will be backdated to 1 October 2011, employees will receive pay increases and improvements in benefits of up to 10%, depending on their job grades. The figures, which will also apply to year two of the agreement, are in line with industry wage settlements.

In addition, also with effect from 1 October 2011, workers who qualify for a housing allowance at job grades Category 3 to Category 9 will receive a monthly allowance of R1850, rising to R1950 with effect from 1 October 2012. This is an increase on the present allowance.

Lonmin also welcomes an agreement to establish a number of working groups to examine various issues around conditions and benefits for employees and looks forward to working closely with NUM in these areas in future.

Barnard Mokwena, Executive Vice President Human Capital & External Affairs, said: "This is a good deal for the Company and the unions, and is in line with the expectations of the market and industry settlements."

Mr Mokwena added: "Negotiations have been positive throughout and have been conducted constructively - I'd like to thank all those involved for ensuring a fair deal was struck in time for Christmas."

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