JOHANNESBURG (miningweekly.com) – Platinum producer Lonmin on Wednesday indicated that no agreement had been reached on forming a new union recognition agreement with the Association of Mineworkers and Construction Union (AMCU).

As the parties were unable to reach an agreement, the Commission for Conciliation, Mediation and Arbitration, which facilitated the negotiation process, on Tuesday issued a certificate of nonresolution.

The parties have agreed to meet again on Thursday to move the process forward; however, Lonmin pointed out that if no agreement could be reached, the process would then move to formal arbitration.

"This is a lengthy and complex process and while we have not yet reached an agreement, we are committed to a labour relations environment that can sustain peace and stability at our mines and in our mining communities," Lonmin acting CEO Simon Scott said.

AMCU national treasurer Jimmy Gama told Mining Weekly Online that negotiations between the parties were hampered, to some extent, by the fact that Lonmin still required mandates regarding the union’s threshold for organisational rights, which it reduced from 35% to 30%; AMCU’s request to reduce its bargaining units at Lonmin from two to one; and the union’s request that the miner move its annual wage increase date from October to July.

“Whether we reach agreement on Thursday depends on the company. We are keen to come to an agreement, but if the company does not move from its position, there is nothing we can do,” he stated.

AMCU now represented 70% of Lonmin category four to nine employees, while the National Union of Mineworkers – formerly the majority union – currently represented only about 20% of the category four to nine employees.