BCL wages deadlock finally resolved
Onalenna Kelebeile | Thursday September 18, 2014 11:09
A statement from the mine’s general manager Daniel Mahupela noted that the wage dispute was settled on Monday this week. Both parties agreed on a six percent salary increase across the board on basic salaries for the employees on the job grades P1 to AO3 effective April 2014.
The 2014/2015 wage negotiations between the mine and the union had broken down after BMWU had rejected the Mine’s six percent offer, and instead demanded a 12 percent increase across the board.
According to Mahupela, the adjustment of salaries and back pays will be implemented during the September 2014 payroll while arrears on allowances and overtime will be calculated and paid out in the next payroll.
A pay structure review would be undertaken in accordance with the terms of reference and the project plan developed by a joint task team, which would equally represent both parties.
The statement further stated that the terms of reference and the project plan for embarking on the pay structure review would be developed and agreed upon by December this year.
The pay structure review project may run beyond the scope of the substantive agreement and will be completed in accordance with the project plan. The parties also undertake to have the findings of the pay structure review presented to the JNC constituted in accordance with the recognition and procedure agreement.
The company also committed to gradually adjust the annual bonuses from the current 5 percent to 8.33 percent of annual basic salary, over a period of three years from the date of agreement. The distribution of the adjustment for the period will be determined by the company in accordance with the mandate given by the Board of Directors.
The company committed that it would renovate or modify hostel accommodation into studio type accommodation subject to funds availability, to phase out the current communal facilities.
This project would be completed within five years from the agreement date. Employees who lose out on company accommodation resulting from these modifications would be entitled to a housing allowance in accordance with company policy.
‘I commend the negotiating teams for their relentless efforts to deliver this outcome. I thank employees for exercising restraint and patience during the lengthy period of engagement,” he said.
The negotiations were set against a difficult background of low metal prices, below budget production, revenue losses recorded in the 2013 financial year and projected losses for the 2014 financial year as well as other operational challenges.
Mahupela had previously stated that production remained a huge challenge due to diminishing cut-and-fill ore from Phikwe Central mine, which has since declined from 80 percent to 30 percent of overall production.