Tue, Oct04, 2011
Kumba Iron Ore employee share ownership plan which will generate about ZAR 1 billion for the taxman will not be available to an estimated 1000 contractors employed by the mining group.
Mr Vusani Malie Kumba company secretary said that legally it was not possible to include non permanent members of the workforce in the scheme. He said that this situation was regrettable and that in general Kumba tried to compensate contract staff for any disparity in earnings.
The exclusion of contractors from Esops which are set to become increasingly important aspects of black economic empowerment schemes is expected to add to political pressure around the use of labour brokers.
The spokesman for the National Union of Mineworkers Mr Lesiba Seshoka acknowledged that contractors would not benefit from the Kumba Esop and noted “This is why we are opposed to the use of labour brokers, they are eroding the benefits that have been earned by the workforce.”
He described the scheme as possibly the best such initiative in place in the country. He said that “We are very excited about the outcome of this scheme and believe it should be the model that is adopted by all mining companies.”
Mr Seshoka acknowledged that the current weakness in the share market could see the payout falling below the estimated ZAR 500 000 pretax cash expected to be paid out to each Kumba employee with five years service. He said that “Share prices rise and fall, that is how the market works and you can’t control the market.”
In terms of the Kumba scheme a cash payout of about ZARL 2.5 billion is expected to be made to Kumba employees in early December. The 6 014 members of the scheme are full time employees below management level.
NUM and trade union Solidarity have both commended Kumba management for engaging extensively with union representatives in the design of the Esop.
(sourced from IOL)
Kumba Iron Ore employee share ownership plan which will generate about ZAR 1 billion for the taxman will not be available to an estimated 1000 contractors employed by the mining group.
Mr Vusani Malie Kumba company secretary said that legally it was not possible to include non permanent members of the workforce in the scheme. He said that this situation was regrettable and that in general Kumba tried to compensate contract staff for any disparity in earnings.
The exclusion of contractors from Esops which are set to become increasingly important aspects of black economic empowerment schemes is expected to add to political pressure around the use of labour brokers.
The spokesman for the National Union of Mineworkers Mr Lesiba Seshoka acknowledged that contractors would not benefit from the Kumba Esop and noted “This is why we are opposed to the use of labour brokers, they are eroding the benefits that have been earned by the workforce.”
He described the scheme as possibly the best such initiative in place in the country. He said that “We are very excited about the outcome of this scheme and believe it should be the model that is adopted by all mining companies.”
Mr Seshoka acknowledged that the current weakness in the share market could see the payout falling below the estimated ZAR 500 000 pretax cash expected to be paid out to each Kumba employee with five years service. He said that “Share prices rise and fall, that is how the market works and you can’t control the market.”
In terms of the Kumba scheme a cash payout of about ZARL 2.5 billion is expected to be made to Kumba employees in early December. The 6 014 members of the scheme are full time employees below management level.
NUM and trade union Solidarity have both commended Kumba management for engaging extensively with union representatives in the design of the Esop.
(sourced from IOL)
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