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Why the huge pay gap?

Cape Town - Fin24 user T Phutjane says he believes the mining companies can afford the salary demand by workers.

Responding to a call for debate on the platinum miners strike by labour

columnist Terry Bell in his weekly Labour Wrap, Phutjane says he is basing his deduction on comparing what Australia companies pay their workers and compared with the bonuses mining bosses receive.

He writes in Australia they pay their miners far more, including proving a family home for the same output of local miners.

He questions how one person can take home a R17m bonus, but the same company cannot afford so little for the person going underground every day.

"I think (Julius Malema) was right about them, let's nationalise platinum mines."

Terry Bell responds:

Hi T

This is the crux of the matter. Payments paid to directors of mining companies are said to be based on international standards. So the miners are saying: why then should our pay not be on the same basis?

Of course, it is more complex, but the unions — and several economists — argue that the mines, certainly on the platinum belt, can afford the R12 500 entry level pay demand, especially if phased in over four years.

Regards

- 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.

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