Palabora, union clash over wages

[miningmx.com] –TRADE union Solidarity has declared a wage dispute with copper mining company Palabora Mining, which operates South Africa’s largest copper mine, following a second round of wage negotiations.

Solidarity said that Palabora Mining was currently only offering a salary increase of 6.5%, adding that it could afford a much higher increase, pointing to the price of copper showing a 140% increase in 2009.

Solidarity is demanding a wage increase of 13%.

It added that Palabora Mining had posted significant profits as a result.

Among other things, the company recorded a gross profit of R931m for the six months up to June 30 2009, the union said.

“The negotiations that resumed this week got bogged down and the employer has made very little progress with regard to Solidarity’s demands. According to the prescriptions for dispute resolution, an internal route has to be followed first. The parties must meet within 72 hours to try and find a solution.

“If this does not happen, the professional help of a mediator of the Commission for Conciliation, Mediation and Arbitration (CCMA) must be called in to get the process on track in order for a workable settlement to be reached,” said Solidarity spokesperson Jaco Kleynhans.

Solidarity also called for a skills transfer to be implemented at C level. Miners and artisans are represented at this level. “This was promised to these employees in the past but now the company is backing out.

“Skills development is one of the core values of the parent company Rio Tinto and Solidarity finds it strange that Palabora Mining does not want to support this incentive since its implementation would contribute to increased production,” the union said.

Solidarity also called for the number of hours of overtime that may be worked per month be reduced from the current 20 to 10. It also called for a review at the manner in which overtime payment was calculated.

The group also insisted that the current discriminatory merit evaluation system be scrapped. “This system is discriminatory in nature and is an amended system that was changed unilaterally by the company. In addition, there isn’t a similar system that applies to Category B employees,” said Kleynhans.

Among other demands, Solidarity asked for a 25% increase in the bond amount of a housing subsidy.

“Meanwhile Solidarity still feels strongly that risk leave as well as leave for shifts in dusty conditions should be implemented again.

“Furthermore, Solidarity wants to consult with the company about the share scheme for employees that will be implemented early in 2010,” it said.

The trade union represents nearly 330 employees at Palabora Mining.