Coal of Africa miners get 26% increase

2012-11-02 08:53

Johannesburg - Coal of Africa [JSE:CZA] (CoAL) advised on Friday that the National Union of Mineworkers (NUM) called off the wage-related strike at its Mooiplaats Colliery on October 30.

The decision follows a meeting held on Monday October 29 between NUM senior representatives and CoAL to resolve the strike action.

The employees returned to work on October 31‚ and the collective bargaining unit which constitutes 27% of Mooiplaats Colliery's monthly salary bill will receive an increase of 26% cost to company inclusive of medical aid assistance‚ housing allowance as well as shift and underground allowances with effect from July 1 2012‚ the company said.

The increase from the original offer of 22% is due to the reallocation of certain allowances into the basic salary component. The settlement translates to an increase of about 1% on Mooiplaats' total cost per saleable tonne.

CoAL CEO John Wallington said‚ "As Mooiplaats colliery staff return to work‚ we have initiated management actions that will reduce operational costs and improve efficiencies at the operation.

"Management is fully aware of the impact the strike has had on the profitability of the mine and is implementing various initiatives to address the long-term viability of the operation. We will complete the full review and restructuring of the colliery that commenced prior to the strike action."

  • mlucejko - 2012-11-02 09:17

    That sounds good, but I suspect it won't be long before the 'company' reduces it's workforce by about 26%... They've got to 'balance-the-books'!! Keep their investors happy !!

      krad.knight.56 - 2012-11-02 09:40

      For sure else do you keep the company afloat in a double dip ?

  • conrad.marshall - 2012-11-02 09:37

    26% is obscene.... i can't even get a 5% increase at my place of work. mining industry in SA must sleep in the bed they are making.....

  • johannes.ramara - 2012-11-02 09:44

    Good for them and not for the economy and the end results is retrenchments . Enjoy for a short while and suffer the consequences afterwards .

      JamesMWood - 2012-11-02 10:25

      Don't forget that we use coal to produce electricity, eskom gonna be askinf for more than 16% now!

  • petrus.ngwenya.3 - 2012-11-02 10:20

    Good, anybody know about an IT related union?

  • rowan.maulson - 2012-11-02 10:43

    Whats the bet this "junior coal miner" goes out of business in about a year or so.

  • Mike Kani Ramajoa - 2012-11-02 10:57

    I'm very happy for the mines, but at the same time more worried on sustainability of this increment. will the miners have jobs in the next 5 yeas I ask?

  • strikeback.strikeback - 2012-11-02 12:40

    Here we go again. Lets avoid confrontation now and fight liquidation later. Make the change subtle.

  • Eterni80 - 2012-11-02 12:48

    the joy of being a 'wekker' in SA, doesn't matter how useless you are, if you belong the right union - you will be rewarded. these sort of increases are gonna hurt SA's economy in the long run - we are granting staggering increases while the rest of the world is implementing austerity measures..

  • pages:
  • 1