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Cape Town - Given a small base salary, it will be expensive or take a long time to get to R12 500, says Fin24 user Pierre Tilney.
Responding to a call for debate on the platinum miners strike by labour columnist Terry Bell in his weekly Labour Wrap, Tilney asks:
* What is the implied percentage increase that the miners are asking for?
* Is their base salary (before extras) R4 500?
* If so it is going to be expensive or take a long time to get to R12 500. Have you done the calculations?
Terry Bell responds:
Hi Pierre,
As you are probably aware, these calculation are rather complex and vary from company to company. On the (rounded) figures that I have, basic pay for an underground worker at Implats [JSE:IMP] is R5 500; at Amplats [JSE:AMS] R5 000; and at Lonmin [JSE:LON] R5 700.
The proposal put on the table by Amcu, and agreed by the strike committees, is for the entry level to be phased in over four years (I have good reason to believe they would accept five years).
This is clearly — even over one year — the 300% increase I have seen quoted. One calculation I have sent argues that the R12 500 can be achieved over four years, starting with 18% to 24% increases in the first year with steadily declining percentages thereafter.
Crudely put, this, certainly in the Lonmin case, means a slightly less than R1 800 increase in each of four years (hence declining percentages) to reach the R12 500 level. Such a deal also holds out the prospect of a multi-year agreement.
But the problem is, I think, not only with the platinum companies, but with the gold and coal sectors that bargain within the Chamber of Mines. Given the potential volatility of the gold price, I imagine companies operating in that sector are fearful of a knock-on effect should a R12 500 deal be struck with the major pgm companies.
Hope that's of help.
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
Responding to a call for debate on the platinum miners strike by labour columnist Terry Bell in his weekly Labour Wrap, Tilney asks:
* What is the implied percentage increase that the miners are asking for?
* Is their base salary (before extras) R4 500?
* If so it is going to be expensive or take a long time to get to R12 500. Have you done the calculations?
Terry Bell responds:
Hi Pierre,
As you are probably aware, these calculation are rather complex and vary from company to company. On the (rounded) figures that I have, basic pay for an underground worker at Implats [JSE:IMP] is R5 500; at Amplats [JSE:AMS] R5 000; and at Lonmin [JSE:LON] R5 700.
The proposal put on the table by Amcu, and agreed by the strike committees, is for the entry level to be phased in over four years (I have good reason to believe they would accept five years).
This is clearly — even over one year — the 300% increase I have seen quoted. One calculation I have sent argues that the R12 500 can be achieved over four years, starting with 18% to 24% increases in the first year with steadily declining percentages thereafter.
Crudely put, this, certainly in the Lonmin case, means a slightly less than R1 800 increase in each of four years (hence declining percentages) to reach the R12 500 level. Such a deal also holds out the prospect of a multi-year agreement.
But the problem is, I think, not only with the platinum companies, but with the gold and coal sectors that bargain within the Chamber of Mines. Given the potential volatility of the gold price, I imagine companies operating in that sector are fearful of a knock-on effect should a R12 500 deal be struck with the major pgm companies.
Hope that's of help.
- Fin24
* Terry Bell is an independent political, economic and labour analyst. Views expressed are his own. Follow him on twitter @telbelsa.
Disclaimer: All articles and letters published on MyFin24 have been independently written by members of the Fin24 community. The views of users published on Fin24 are therefore their own and do not necessarily represent those of Fin24.
