Democratic Left Press: Mineworkers right to demand double digit wages
Mazibuko K. Jara
DEMOCRATIC LEFT FRONT
Press Statement: Mineworkers have every right to demand double digit wage increases.
The frontpage headline article, of the Business Day (27/7) “Double-digit wage threat to SA mines — De Beers” is cheap propaganda in favour of the miner owners facing strike action in the industry.
De Beers is diverting from its massive profits that it declared for the first six months, i.e. a rise in profits of 74%. But what about wages and the threat that this would have for the mining industry?
The facts are the following:
Fact 1: In mining and quarrying between 2000 and 2010 the wage share of value added fell from 44% to 36% as against profits! Over the period this represents a combined loss of earning for workers of just more than R100 bn.
Fact 2: The super profits made by the mine owners were not reinvested at any level sufficient to create jobs, develop the industry or address the dire health and safety issues faced by miners. According to the Reserve Bank, fixed capital formation for 2002-2010 in mining, is a meagre R331 billion of the total R815 billion in profits. It is likely the bulk of these profits were repatriated abroad, invested in financial speculation or paid in dividends to fund the conspicuous consumption of the very wealthy. Of course the profits were not used to rehabilitate the environment that has been destroyed through mining. Here we can just mention the massive problem of acid mine drainage which tax payers now have to shoulder.
Fact 3: Productivity in mining has been doing very nicely. The productivity for the period increased on average by 11.5% per year measured as change in value added per employee. The productivity gain in 2009-2010 was 15%. These productivity gains have been captured by the employers at the expense of the workers.
The reality of the situation is profits are too high, wages are too low and the employers refuse to abide by regulations established to address the situation.
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28 July 2011
DEMOCRATIC LEFT FRONT
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