About 15% of Lonmin Miners Have Debt Cut From Pay, Auditor Says
Stock Chart for Lonmin PLC (LMI)
About 15 percent of Lonmin Plc (LMI)’s South African miners have debt repayments deducted directly from their wages because of court orders won by creditors, according to an auditor involved in reviewing claims against employees.
“That doesn’t mean that only 15 percent have loans,” Kem Westdyk, a business manager at Summit Garnishee Solutions, said in an interview with Moneyweb broadcast on SAFM radio. “I would say there’s not a miner at Lonmin that doesn’t have a loan.”
Lonmin awarded pay increases of as much as 22 percent after about 28,000 workers went on strike for six weeks. Under South African law, creditors can obtain orders from courts demanding employers deduct money owed to creditors before paying wages.
Lonmin declined to comment on the matter.
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