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Business Times reports that the Minerals Council SA (MCSA), which represents 90% of SA’s mining industry, says a "highly unionised" labour force in mining has led to a "decoupling" between real gross earnings and labour productivity.
In response last week to Stats SA’s Quarterly Employment Survey for the second quarter, the MCSA said: "Growth in real gross earnings is faster than labour productivity. Mining employees are getting paid more relative to the value they produce ... This is an indication of a highly unionised workforce which can negotiate relatively higher wage increases." Acting chief economist Bongani Motsa said the mismatch between productivity and wage growth could lead to inflationary pressures, tighter profit margins and a reduction in global competitiveness. The economy as a whole recorded a 0.2% quarter-on-quarter increase in wages, including bonus payments and overtime, and a 3.4% year-on-year growth in remuneration to R986.8bn. In the mining sector, remuneration was up 2.2% in the quarter at R49.8bn.
Motsa commented: "I am not a proponent of low wages compared to inflation; we should acknowledge that they should be in line with the growth of production and productivity … The legislation is pro-labour instead of a balance; it should also cater for businesses." National Union of Mineworkers (NUM) spokesperson Livhuwani Mammburu said Motsa’s comments reflected an agenda by members of the council to replace permanent employees with contractors.
Gideon du Plessis, general secretary-of Solidarity, argued that wage hikes in mining were not excessive and that offering decent wage packages ensured labour stability and productivity. He called on the MCSA to scrutinise the substantial remuneration packages and annual increases awarded to mining executives.
- Read the full original of the report in the above regard by Dinei Faku at Business Times (subscriber access only)
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