Today's Labour News

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MantasheReuters reports that Resources Minister Gwede Mantashe unveiled a new mining charter on Thursday, a crucial step to attracting further investment to a sector laid low by depressed prices, soaring costs and murky policy.  

The third version of the charter requires miners to provide their local communities and employees with a free 10% stake, a policy some companies may be pressed to bear but which unions say is needed to secure social peace.  The charter raises the level of black ownership as expected to 30% from 26% while providing breakdowns on how the stakes should be divided, with 20% for black business interests and 5% each for communities and employees.  “The community/employee stake is a 10% investment in peace and stability.  Current levels of mine community unrest and high number of industrial action creates a high level of instability,” Gideon du Plessis, general secretary of Solidarity commented.  The Minerals Council SA, which represents most of SA’s mining companies, said it would comment later after it had studied the document.  Among the controversial provisions in previous drafts that were dropped was one that would have required companies to pay 1% of earnings before interest, depreciation and amortisation to employees and communities if no dividends were paid for six years.  At the board level and among top management, the charter requires 50% black representation and 20% female representation.

  • Read this report by Patricia Aruo in full at Moneyweb

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