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Cape Town - The issue around the R12 500 wage demand of mine workers' union Amcu mentioned in Terry Bell's weekly Labour Wrap has sparked a flurry of interest among Fin24 users.
Fin24 user Angus Smith writes: Just watched Bell’s short video about the platinum strike, but is effectively says nothing.
The issue the media needs to clarify is:
* What is the basic wages of the miners claiming a minimum of R12 500.00?
* Is that made up of a shift allowance, a living-out allowance and a basic wage?
* If so, what do all of the components above add up to?
The “perks” in the miners' salaries which include the living-out and shift allowances should be calculated to be a part of the R12 500. If the miners are getting the allowances on top of a basic salary of say R6 000, then the total salary of the miners would be pretty close to the R10 000- or even R12 000-mark already.
If however, the miners only see the R6 000 basic (I am guessing this figure here), and want that to be increased by another R6 500 to make a basic salary of R12 500, then we definitely have a problem! (That would take their wage up to around R16 000 or so.)
Please can this be clarified properly as the media in instances such as this one just spurts forth garbage containing little fact so people can make up their own minds based on fact.
Terry Bell responds:
Hi Angus
In just 3 minutes, the Labour Wrap is aimed at provoking discussion and debate. This it has certainly done.
As I have noted to others who have commented: this is a fairly complex issue, but you have zeroed in on the sticking point in the negotiations.
The companies want to include "extras" such as holiday pay and living-out allowances into the basic rate and say if they do so, they will reach the R12 500 in three years.
The strikers' position, tabled by their union negotiators, is for a R12 500 basic to be achieved over four years (or possibly five, if the information I have been given is accurate).
Current entry level pay for underground workers varies from company to company and ranges from R5 000 to R5 700.
In percentage terms, the union demand amounts to increases in the first year of between 18% and 24% with the same cash amount (in the R1 800 range) being awarded each year for four years. This would steadily decrease the percentage increases and hold out the prospect of a long-term deal.
Regards
* 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. .
Fin24 user Angus Smith writes: Just watched Bell’s short video about the platinum strike, but is effectively says nothing.
The issue the media needs to clarify is:
* What is the basic wages of the miners claiming a minimum of R12 500.00?
* Is that made up of a shift allowance, a living-out allowance and a basic wage?
* If so, what do all of the components above add up to?
The “perks” in the miners' salaries which include the living-out and shift allowances should be calculated to be a part of the R12 500. If the miners are getting the allowances on top of a basic salary of say R6 000, then the total salary of the miners would be pretty close to the R10 000- or even R12 000-mark already.
If however, the miners only see the R6 000 basic (I am guessing this figure here), and want that to be increased by another R6 500 to make a basic salary of R12 500, then we definitely have a problem! (That would take their wage up to around R16 000 or so.)
Please can this be clarified properly as the media in instances such as this one just spurts forth garbage containing little fact so people can make up their own minds based on fact.
Terry Bell responds:
Hi Angus
In just 3 minutes, the Labour Wrap is aimed at provoking discussion and debate. This it has certainly done.
As I have noted to others who have commented: this is a fairly complex issue, but you have zeroed in on the sticking point in the negotiations.
The companies want to include "extras" such as holiday pay and living-out allowances into the basic rate and say if they do so, they will reach the R12 500 in three years.
The strikers' position, tabled by their union negotiators, is for a R12 500 basic to be achieved over four years (or possibly five, if the information I have been given is accurate).
Current entry level pay for underground workers varies from company to company and ranges from R5 000 to R5 700.
In percentage terms, the union demand amounts to increases in the first year of between 18% and 24% with the same cash amount (in the R1 800 range) being awarded each year for four years. This would steadily decrease the percentage increases and hold out the prospect of a long-term deal.
Regards
* 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. .
