1 / 18

WAGE NEGOTIATIONS IN THE MINING INDUSTRY AND THOUGHTS ON A NATIONAL MINIMUM WAGE

WAGE NEGOTIATIONS IN THE MINING INDUSTRY AND THOUGHTS ON A NATIONAL MINIMUM WAGE. Mr Bheki Sibiya : Chief Executive Dr Elize Strydom : Senior Executive: Employment Relations 20 September 2014. OUTLAY OF PRESENTATION. An introduction to the Chamber of Mines

arleen
Download Presentation

WAGE NEGOTIATIONS IN THE MINING INDUSTRY AND THOUGHTS ON A NATIONAL MINIMUM WAGE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WAGE NEGOTIATIONS IN THE MINING INDUSTRY AND THOUGHTS ON A NATIONAL MINIMUM WAGE Mr BhekiSibiya: Chief Executive Dr ElizeStrydom: Senior Executive: Employment Relations 20 September 2014

  2. OUTLAY OF PRESENTATION • An introduction to the Chamber of Mines • Wage negotiations in the Gold mining industry • Thoughts on a national minimum wage

  3. AN INTRODUCTION TO THE CHAMBER OF MINES • Registered Employers’ Organization • Key functions are advocacy & lobbying in respect of collective interests of its members • Also render certain services such as wage negotiations for Gold & Coal members • TheChamber has 72 members and represent about 90% of mining production in South Africa

  4. OVERVIEW OF MEMBERS Other commodities ASA Metals ASPASA Clay Brick Association Corobrik Deilmann Haniel (Redpath) Delta Mining G&W Base and Industrial Minerals Imerys South Africa Murray & Roberts Cementation PPC Randgold & Exploration SA Mining Contractors’ Assoc Shaft Sinkers Vametco Mineral Corporation Some new members Jindal VMCIL Riversdale Vergenoeg Mining Tshipi e Ntle Giyani Gold Financial corporations Anglo American Corp African Rainbow Minerals BHP Billiton Mvelaphanda Resources Rio Tinto (Richards Bay Minerals) Coal mining Anglo Coal Division BHP Billiton Energy Coal Coal of Africa Continental Coal Exxaro Jindal Mining Kangra Group Kuyasa Mining Optimum Coal Sasol Mining Siyanda Total Coal Tweewaters Fuel Umcebo Mining Glenocore Coal Chrome Mining Samancor Chrome Glencore Alloys Diamond mining De Beers Consolidated Namakwa Diamonds Petra Diamonds SA Diamond Producers Organisation (SADPO) Trans Hex Group Gold mining AngloGold Ashanti DRD Gold Gold Fields Harmony Gold Mining Sibanye Gold Rand Uranium Iron Ore Kumba Iron Ore Platinum mining Anglo American Platinum Impala Platinum Lonmin Platinum Northam Royal Bafokeng Plat Aquarius Platinum

  5. Growth strategy for the mining sector Competiveness of the mining industry • Taxation review • Beneficiation • Infrastructure Dev. • Energy • NDP • MPRDA Amendment Bill • License challenges Sustainable Development Issues Economic Issues Skills Development Issues • Training in H&S • Artisan training • FET’s • Skills Bills Environmental Issues Labour relations Issues Safety Issues Health Issues • Wage negotiations obo Gold & Coal members • Implementation of wage agreements • Explore central level negotiations for Platinum • Represents Chamber in BUSA & NEDLAC iro labour market issues • Waste Act, Protected areas, etc. • Water issues • Carbon tax • Compensation for Lung Diseases (ODMWA, COIDA) • TB, HIV/AIDS • Centre of Excellence • Safety performance • Culture Transformation • Section 54s • Elimination of Fatalities Key issues on the radar screen • JSE Integrated Reporting • SLP performance • Community development • Migrant labour • Supporting local government Transformation Issues • Charter compliance audit • 10 year target 2014 • Charter post 2014 ld Mining industry challenges 5

  6. WAGE NEGOTIATIONS IN THE MINING INDUSTRY: GOLD • Central level negotiations under auspices of COM • Bargaining unit: Cats 4-8, Miners & Artisans, & Officials (90 000 employees) • Access by unions to negotiations not only determined by representivity • Currently 4 unions: NUM, AMCU, UASA & Solidarity • Negotiated a 2-year agreement in 2013 which will expire June 2015 6

  7. WAGE NEGOTIATIONS IN THE MINING INDUSTRY: GOLD • Wage increases to address wage inequality • Minimum wage/entry level wage for surface & underground work • Consistently higher % increases at entry level than for other categories of employees to close the wage gap • Over past decade, average basic wage increases always above CPI 7

  8. WAGE NEGOTIATIONS IN THE MINING INDUSTRY: GOLD • Wage increases to address wage inequality (cont) • Have “rolled up” job categories where circumstances dictated it - entry level employees moved to a higher job grade level with linked wage increases • Provision that contractors must offer their employees wages & other terms & conditions that are “similar” to those offered by mines to their employees 8

  9. WAGE NEGOTIATIONS IN THE MINING INDUSTRY: GOLD • Introduction of benefits to address inequality • Retirement – Mineworkers Provident Fund (MPF) • Established after 1987 Gold strike • Employer contribution 15% of basic & employee 8% of basic • Health care & medical aid • Free health care for employee; or • Medical aid for employee, spouse & children • 50:50 co-contribution • 60% contribution by company if first time member 9

  10. WAGE NEGOTIATIONS IN THE MINING INDUSTRY: GOLD • Addressing legacy issues to address inequality • Introduction of the Living-out Allowance • Working on housing, including home ownership • Working on transforming the migrant labour system • Working on addressing employee indebtedness 10

  11. BREAKDOWN OF GUARANTEED PAY IN GOLD 11

  12. THOUGHTS ON A NATIONAL MINIMUM WAGE • Appreciate the value of a minimum wage to address income inequality • It should be explored collectively by all stakeholders & some of the issues which will have to be considered/taken into account are: • What is meant by a minimum wage? • A minimum wage is but one of a range of mechanisms to address inequality 12

  13. THOUGHTS ON A NATIONAL MINIMUM WAGE (cont) • A “one size fits all” i.e. a national minimum wage across all industries might not be appropriate as it will not necessarily take into account realities within different industries such as: • skills levels required, • geographic spread, • labour intensiveness, • size of businesses, and • economic realities of that industry 13

  14. THOUGHTS ON A NATIONAL MINIMUM WAGE (cont) • For the same reasons, a national minimum wage for an industry as a whole & with no distinction between different sectors of that industry might also be inappropriate (eg mining & chemical sectors) 14

  15. THOUGHTS ON A NATIONAL MINIMUM WAGE (cont) • The knock-on effect on wages of employees in higher job categories • It should be pegged at a level which does not threaten jobs, undermine the sustainability & competitiveness of a business & leads to informalisation • It should be pegged at a level which does not undermine the actual creation of jobs 15

  16. THOUGHTS ON A NATIONAL MINIMUM WAGE (cont) • Difficulty of enforcing, particularly in the informal sector • What about existing minimum wages determined through voluntary collective bargaining (e.g. bargaining council agreements)? • What about existing sectoral determinations made by the Minister of Labour in respect of vulnerable sectors (e.g. domestic workers, farm workers, private security, contract cleaning, taxi drivers, retail)? 16

  17. CONCLUDING REMARKS • The issue is complex but, in the spirit of putting South Africa first & finding ways to address inequality, it should be explored collectively by the stakeholders • The Chamber (as part of BUSA) looks forward to participating in the Deputy President’s Labour Indaba in November where this issue will be debated 17

  18. THANK YOU 18

More Related