Business Times writes that in Kumba Iron Ore’s current wage negotiations, the National Union of Mineworkers (NUM) plans to make sure that the company takes into consideration the good performance the company experienced last year when its share price quadrupled.
This is even though the iron ore price has been in free fall since reaching a high in February. The company will be responding to the union's demands this week in the second round of the negotiations. The NUM, which has 56% membership in KIO’s Kolomela and Sishen operations, has asked for a reduction in working hours, a maternity allowance that Kumba had scrapped, and for the employee share ownership plan (Esop)to be renegotiated, among other things. It wants the entry level to be scrapped so that every worker starts at the second level of payment and is demanding a 16% wage increase or an additional R1,310.72 a month for the lowest-paid worker. The last wage agreement was for three years and the NUM now wants a one-year deal. However, it is open to be persuaded to accept a multi-year agreement if the settlement is favourable. The company commented that it would be negotiating wages fully aware of the highly volatile iron ore price environment.
- Read this report by Lutho Mtongana in full on page 4 of Sunday Times Business Times of 4 June 2017
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