Strike season starts

The 2011 wage negotiations in the gold and coal mining sectors have begun, with the National Union of Mineworkers (NUM) demanding a 14 percent basic wage increase, the Chamber of Mines said on Monday.

The period is has been dubbed 'strike season' becuase it is marked by numerous strikes and protest action.

"From our initial analysis, the demand for a new minimum monthly wage constitutes an increase of 25 percent," Chamber of Mines industrial relations adviser Elize Strydom said in a statement.

"This, together with the demand for an increase of basic salaries of 14 percent, as well as a demand for approximately 45 percent increase in the living out allowance (which for gold currently adds another R1400 to the remuneration package), reflect a disregard for Consumer Price Index (CPI) which is currently just slightly above four percent," she said.

'Reasonable demands'

However, NUM national spokesman Lesiba Seshoka said the 25 percent increase mentioned by the chamber was a "creation of their imagination... they are acting like mathematicians".

He said the NUM's demand for a 14 percent increase was "reasonable".

Headline inflation might be around four percent, but workers would suffer more than others from the increases in food and fuel inflation, he said.

Strydom, who would lead the negotiations for the mining companies negotiating at the Chamber of Mines, said the NUM's demands were concerning.

"We are therefore concerned, particularly as the mining companies have gone to great lengths to share with all interested parties the severe cost pressures in the industry.

"The gold mining companies have been at pains to highlight the significant disjuncture between the gold price in dollars and the financial situation of the South African gold companies at the quarterly releases of their companies' results," she said.

Labour costs

The NUM represents the largest number of employees in the mining industry.

The chamber said it had not yet received demands from the other recognised industry unions, UASA and Solidarity.

Strydom said labour costs constituted the biggest cost item for mining companies.

"For gold mining companies, this ranges between 50 and 55 percent of their total costs."

She said the NUM's demands would alienate investors and further erode these companies' already tight margins.

Seshoka, however, scoffed at the idea of tight margins.

"I have personally scrutinised all their annual reports and I have not seen tight margins... they only become tight margins when we talk about annual negotiations... not when they buy expensive whiskey.

"This is something not new, it has been there since the '80s... but the amount of money they take home as chief executive officers is astronomical," he said.

Clear message

Strydom called on the unions to find a middle ground.

"We will approach the negotiations in a positive manner, but with a clear message that it will be incumbent on all parties to work hard towards finding a middle ground where the interests of both the workers and the mining companies are taken cognisance of and accommodated," she said.

Seshoka said NUM was "very disappointed that the initial reaction was so negative".

"We had hoped they would respond to us saying thank you... we have acceded to your demands."

A date had not yet been set for the start of negotiations.

Source: http://business.iafrica.com

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