Today's Labour News

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headgearANA reports that mining analyst Rene Hochreiter said on Thursday that the government needed to do more to attract new investment into the industry, adding that attention needed to be given to the high expense and low productivity of labour.  

Speaking on the sidelines of the Mining Indaba in Cape Town, Hochreiter of Noah Capital Markets said the industry was burdened by headcount costs and heavy taxes on companies.  “Everywhere else in the world, mining companies reduce costs year after year and become more efficient.  Not in South Africa.  Wages increase every year irrespective of whether productivity has improved,” Hochreiter pointed out.  He went on to say:  “Labour strikes are incessant and devastating for productivity.  Local communities receive payments.  This is like a third tax on South African mines like a triple-dipping tax regime.  And the government always sides with labour; nowhere else in the world does this happen.”  President Cyril Ramaphosa and Mineral Resources Minister Gwede Mantashe told the indaba that the sun wasn't setting on the mining industry, as many thought.  But, Hochreiter said the government had to outline tangible reasons to investors and not simply peddle the cliché that “South Africa is open for business”.  He claimed the inflow of capital investment, through the ‘lax tax’ system for mining investment, would create many new jobs whose employees would pay income taxes far exceeding any mining taxes and royalties now received by the government.


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