Lonmin’s Scott can’t rule out “tough decisions’

[miningmx.com] – LONMIN may still have to make some tough decisions,
but the company would continue to navigate through its financial position carefully.

So said Simon Scott, interim CEO of Lonmin, who added that the group would have to
find new ways of improving its relationship with its workers.

Speaking on Talk Radio 702’s evening business programme, The Money Show, Scott
said, “There are some tough decisions, but we will do them in consultation with all our
stakeholders.

“There are some cost pressures but we will navigate through these short-term
financial pressures carefully to protect Lonmin’s long-term value.’ Lonmin had some
50 years of platinum resources, Scott said.

He added that the existing bargaining structure faced challenges but that in agreeing
to pay workers between 11% and 22%, as well as pay a one-off R2,000 per worker
bonus, the company protected its bargaining position.

Commenting on possible changes to the way platinum companies negotiate annual
wage talks, Scott said that centralised bargaining had a place. “Collective bargaining
is difficult but we will consider a centralised bargaining structure.’

Asked whether Lonmin’s relatively generous wage agreement with unions had put
renewed pressures on other platinum producers, Scott said, “We struck an agreement
that allows us to get back to work for the benefit of all.

“It was a difficult negotiation but we wanted to get back to a situation where we are
producing again,’ he said.

“I don’t think anyone would say this has been easy to resolve. We are reviewing how
we do things. We’ll be focussing on doing things better.

“Above all, this was a human tragedy,’ he added.