08 Mar Insight into Implats 18% wage increase
Insight into Implats 18% wage increase Implats resumes mining After a six-week strike that left three… Zimbabwe “sick and tired” of Implats delays Zimbabwean minister launches a verbal attack… Implats workers trickle back “We believe most people want to go back to… Implats seeks talks with Zimbabwe on mine stakes After it rejected its empowerment plan. Malema to address Implats miners 3 people have been killed during the… –> Implats resumes mining After a six-week strike that left three… Zimbabwe “sick and tired” of Implats delays Zimbabwean minister launches a verbal attack… Implats workers trickle back “We believe most people want to go back to… Implats seeks talks with Zimbabwe on mine stakes After it rejected its empowerment plan. Malema to address Implats miners 3 people have been killed during the… –> Miners’ reward was out of kilter with the rest of the industry. Implats says that the decision to award an 18% increase to its miners is not as straightforward as it sounds. Indeed, if the number of 18% is heard in isolation one might be inclined to think that it sounds rather lavish. This was undoubtedly the conclusion that the miffed rock drill operators (RDOs) came to. However, Implats is at pains to explain that the due process behind the decision was part of an industry standard market review. This is a regular undertaking to ensure that rewards are in line with other mining companies competing for scarce skills in the market. Implats’ reward policy it said is to position wages and salaries within 10% of the sector benchmarks. “The miner category was the only category in which we have been substantially below the benchmark for a number of years” said executive manager, Johan Theron in an email to Moneyweb. “Market reviews are a normal business practice in our industry, especially as the mining industry worldwide has been through a period of rapid expansion in the past few years which impacts on the availability of some skills. This in turn means that companies are continually having to review remuneration to maintain consistency in the operations and to retain their skill base” said Theron. In contrast to the lower graded RDOs, the miners (classified as a skilled category on the same level as artisans) require blasting certificates which puts them in a position of responsibility and supervision with authority over other workers. This position also carries with it a legal appointment with clear legal responsibilities said the company. Implat’s battle with a 25% turnover per annum in miners is not just the loss in productivity, additional cost of re-training and recruitment – a high turnover of staff with little or no experience poses an increased safety threat. Contrastingly, the turnover of RDOs is at a lower rate of 6%-8% over the past 2 to 3 years the company said. “Senior management and union leaders agreed on an increase in base salary and housing allowance for this group [the miners] in November/December 2011. In addition, it was agreed to introduce a new supervisory level under the Miner and to promote, train and upskill 2,000 employees into this level. This would assist with the safety strategy and the DMR’s safety requirements. This new level would report directly to the Miners” said Theron. Much has been said about the devastating strike at the platinum miner’s Rustenburg operations but it is difficult to comprehend the extraordinary consequence of an ordinary benchmarking process. “It is established practise in the industry, and in this regard we have a formal union/management structure at Impala that deals with these matters collectively. Implats’ committee meets quarterly. We have made many similar adjustments to specific grades as a result of such reviews. During 2011/12 many such reviews were undertaken, with adjustments being made to 6 job categories” said Theron. This review exercise is undertaken over and above the two year wage agreement which was reached in 2011 through a collective bargaining agreement between Implats and the NUM (National Union of Mineworkers). The two year wage agreement covered all the workers in the bargaining unit, which means that all these employees received a wage increase at that time said Theron. According to Chris Jacobs, director at business consultancy firm, OIM, in the aftermath of this kind of strike, it is crucial that businesses and unions take immediate corrective measures to establish stability. “This relies on establishing the correct relationships and having the right culture in place that encourages people to come forward with their grievances. It is a process and not an occurrence” said Jacobs.