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Coal mining feels the heat

Fille Photo
Fille Photo

The struggling coal sector in Mpumalanga is feeling the heat after workers went on strike following an impasse with company bosses over wage increases.

The companies whose operations ground to a halt yesterday due to the strikes include Anglo Coal, Exxaro, Glencore and Delmas Coal.

Association of Mineworkers and Construction Union regional organiser and chief negotiator in the coal sector Dumisani Mahlomuza told Sowetan that at Delmas Coal, where NUM is a majority union, they are demanding an across-the-board wage increase of R2500.

"The increase would bring the monthly wage of the lowest paid employee to R8600 gross from R6100," he said. Mahlomuza said they also wanted the company to increase the housing allowance to R3300 from R1881.

"For a four-roomed house, a person is required to pay R3500 a month. The housing allowance demand also covers the bond, sewage, electricity and water," he said.

The strike comes when the sector in Mpumalanga is feeling the pinch of weakened demand. Glencore's subsidiary Optimum Coal, which is under business rescue, dealt a blow to the economy of Middelburg two months ago when it laid off 600 workers.

Amcu president Joseph Mathunjwa told Sowetan the coal sector was enriching the employers at the expense of workers and was bleeding jobs.

"The number of employees in 2013 increased to 90000. In 2014 the coal sector employees decreased to 84000 and this year we have so far lost 4000," he said.

Mathunjwa said close to half of the industry's workers did not have permanent contracts. "About 40% of the workers were supplied by labour brokers."

He added that in 2005, the sector's wages made a 50% contribution to the gross domestic product and last year the wages made a 30% contribution. "This means the mine producers are taking more money and the workers are getting paid less and less each year."

More than 30000 National Union of Mineworkers members in the coal sector also embarked on a strike after the CCMA issued a certificate of non-resolution to the dispute.

The conciliation between workers and Anglo Coal, Exxaro and Glencore was halted last week when the parties could not reach an agreement over the R1000 for the lowest category and 14% for the artisans, miners and officials demand by the NUM, said union spokesman Livhuwani Mammburu.

"The companies are offering the lowest paid workers an increment of 8.5% and for the artisans, miners and officials it is 7%. Exxaro Coal Mpumalanga is offering 8% for the lowest category and 7.5% for the artisans, miners and officials," he said.

"Kangra is offering 7.5 % for the lowest category and 7% for the artisans, miners and officials. Koornfontein mine and Delmas are offering 5% for all categories. Msobo Mine is offering 7% for the lowest category and 5% for the artisans, miners and officials," he said.

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