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Strike looms at Botash after wage deadlock

In demand: Botash’s products have a ready regional and African marekt PIC: BOTASH.BW
 
In demand: Botash’s products have a ready regional and African marekt PIC: BOTASH.BW

Botash, located in the Sua Pan in the North East, is the region’s largest supplier of natural sodium and related products and has a workforce of more than 500.

Mmegi is informed that the strike action comes after deadlocked negotiations in which workers were pushing for across-the-board salary increases of eight percent, shift allowances increases of eight percent as well as increases of eight percent in their standby allowances. Workers also wanted a utility allowance of one 48 kilogramme gas cylinder per employee per annum.

Management offered six percent increases across the three categories and ruled out the utility request.

“Despite several meetings with a mediator, the parties were unable to reach a mutually acceptable agreement,” Union insiders told Mmegi this week. “The BMWU is holding firm on its demand for an eight percent increment, while the management has offered six percent. “The Union has requested access to the wage bill to assess the implications of the increment, but the management is not willing to fully disclose this.”

Workers are also reportedly incensed by allegations that production bonuses were recently paid to management. The workers suspect that some members of management received bonuses equivalent to three months’ salaries.

“The proposed eight increment for the bargaining unit would amount to P12 million, which the Union believes is reasonable compared to the bonuses paid to management,” the insiders told Mmegi.

Top BMWU officials, Botash management and the mediator were reportedly locked in last-minute meetings this week to avert the strike action, to no avail. The action could involve a peaceful demonstration, insiders said.

Responding to Mmegi enquiries on the matter, a Botash spokesperson said the company acknowledges and respects the Union’s right to engage in industrial action in terms of the law, but remains open to “constructive dialogue aimed at reaching an amicable resolution”.

“Parties have met twice for mediation, whereat the Union declared their intention to go on a strike in terms of the applicable labour laws. “At their last meeting, management had offered 6% across the board and 6% on shift and standby allowances, while the Union’s proposal stood at 8% for both, including 1 x 48kg gas cylinder per annum. “Botash believes that the offer is fair and competitive, reflecting current economic conditions and market benchmarks,” the spokesperson said.

Botash is one of the key non-diamond mining entities with export revenues in the country. At a time when diamonds and coal are under strain, Botash’s soda ash and salt remain in high demand in the region.

According to its website, Botash’s nameplate production capacity for soda ash is 300, 000 tonnes per annum while salt is approximately 650, 000 tonnes per annum, which includes chemical grade, food grade coarse salt, and food grade fine salt.

Soda ash enjoys resilient demand in industries such as glass production, chemicals, and detergents, while salt has over 14,000 different applications from food to the softening of hard water.