×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Kumba employees to reap BIG pay-out

As part of empowerment plan for non-managers

South Africa’s Kumba Iron Ore Limited said on Tuesday that over 6,200 of its employees would reap a 576,045 rand ($68,700) payout in December as part of an “empowerment” plan aimed at non-managers.     

In an effort to right the wrongs of apartheid and give blacks a stake in the economy, South Africa requires mining firms to meet quotas on black ownership, employment and procurement. In the local political jargon this is known as "empowerment".

Critics say such deals often only enrich a politically connected elite, sparking a push by unions and the government for more “broad-based” schemes that benefit the rank and file.     

The scheme by Kumba, a unit of global mining giant Anglo American, falls in the “broad-based” category as cleaners and drivers will receive the payout, which has been calculated based on a five-day weighted average of the Kumba share price prior to its close on Nov. 17.     

Kumba said in a statement that the after-tax payout would be just over 345,000 rand.     

The scheme is called “Envision” and over the past year Kumba organised workshops, industrial theatre performances and distributed comics to teach blue-collar workers about how to pay off debt, invest in housing and not squander their newly found wealth on cars or alcohol.     

They were also taught how to pay taxes — a new experience for some because of their low incomes.

Workers in the scheme earn between 5,000 and 20,000 rand a month, excluding benefits.      

Kumba has already paid a total of 279 million rand in dividends to the same employees over the past five years, each getting on average 55,000 rand.      

Kumba chief executive Chris Griffith said Envision made business sense.     

“We haven’t had a strike in years. Employees are thinking all the time about how to continue to deliver what we are expected to deliver,” he said.

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.