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Article

1 Jul 2015

Author:
Lisa Chamberlain, Centre for Applied Legal Studies in Business Day (So. Africa)

So. Africa: 'Lonmin has broken law by dodging housing obligations' at Marikana, says analyst

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'Lonmin has broken law by dodging housing obligations', 1 Jul 2015:…[T]he Marikana Commission of Inquiry is…to be commended...[because it] investigated Lonmin’s compliance with its housing obligations in terms of its SLP [Social Labour Plans]…[D]espite committing to building 5,500 houses…it in fact managed to build only three…[A]mendments to an SLP require approval by the mineral resources minister. No such approval was either sought nor given…The commission confirmed that it is unacceptable for Lonmin to try to hide behind the general economic crisis at the time, particularly when during the period in which Lonmin claims it could not afford its R665m housing scheme, it paid out more than $600m in dividends…Second, the commission drew a welcome link between…Lonmin’s failure to comply with its housing obligations…[and the resultant]…environment conducive to the creation of tension, labour unrest, disunity among its employees or other harmful conduct"…What is less commendable is…[that] the commission…finds that Lonmin has broken the law…yet no action on the part of Lonmin is recommended…

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