Mahupela offers miners 6% increment
Onalenna Kelebeile | Friday June 20, 2014 17:36
The 2014/2015 wage negotiations between the mine and Botswana Mine Workers Union (BMWU) have broken down as the Union has rejected the offer and demanded a 12 percent across the board increase.
In a brief to workers, Mahupela explained that the negotiations that commenced in April were set against a difficult background of low metal prices, below budget production, revenue losses recorded in the 2013 financial year, projected losses for the 2014 financial year as well as other operational challenges.
He stated that production remained a big challenge, mainly due to diminishing cut-and-fill ore from Phikwe Central mine large stopes, which have since declined from 80 percent to 30 percent of overall production.
“We have delivered below budget ore tons to the concentrator, impacting negatively on metal produced at the smelter and revenue,” he said.
“Ore from the cut-and-fill stopes will no longer be available for 2014 as they have been depleted.”
The GM further stated that management had appealed to the Board of Directors and a mandate for adjustment of wages was granted to cushion employees against inflation.
He added that management initially offered four percent across the board on actual basic salaries and a P60 across the board housing allowance increase. On the other hand the Union, according to the brief, rejected the offer and demanded an 11 percent across the board increase, adjustment of annual bonus from five percent to 8.33 percent of annual salary, an adjustment of housing allowance as well as salary structure review.
“With no prospects of settlement in sight, parties declared a deadlock and invoked the dispute resolution procedure with seven days cooling-off period during which parties consult their principals,” Mahupela said.
“Parties convened on May 22 and when positions remained unchanged, management requested an adjournment to update its principals.”
Mahupela’s statement further said in an attempt to find an amicable settlement, management returned to the negotiating table with an improved mandate for consideration by the Union. Management presented three options: five percent across the board plus P80 increase on housing allowance, six percent across the board or a differentiated increase according to job grades.
“The improved mandate took into account both the immediate welfare needs of employees and the long term sustainability of BCL that will benefit all stakeholders.
“In this regard, management continued to implement ways to improve our operational efficiency. We developed a new vision and strategy to take the mine beyond the current business model of mining and smelting nickel and copper alone,” Mahupela’s brief reads.
He further explained that BCL needed to achieve production targets in order to generate enough revenue to improve employees’ take-home pay and that the production bonus scheme the Mine has implemented will continue to be reviewed to ensure that the rewards correspond with the output required.
Both parties have signed a joint statement of dispute, which is to be referred for mediation.