Wescoal says its has “successfully” negotiated an annual wage agreement with the national Union of Mine Workers to hike pay by 7%, backdated to April.
Inflation is currently 4.6%.
The deal wraps up Wescoal’s annual wage negotiations for the current year.
However, it excludes production bonuses, which are reviewed on a regular basis, depending on production.
In the year to March, wescoal turned over R1.7 billion, but warned the next 12 months would challenging as competition increases, load shedding impacts the trading business and the state of the steel sector in South Africa comes under pressure with already reduced orders for coal being experienced.
Wescoal Mining was set to evolve its long-term strategy around the Eskom’s requirements of at least 50%historically disadvantaged individual ownership to ensure it can wrap up long-term coal supply contracts.
“Management remains cognisant of the fact that currently 80% of Wescoal reserves are of the Eskom-type of resource and therefore holds the view that most of Wescoal’s business will continue to be built around Eskom,” it said in its results.
It noted additional avenues of coal supply were being explored as part of an assessment of the business’s long-term strategy and risk management.
Wsescoal’s wage deal also introduces medical benefits for all employees from 1 July 2015 and a taxi transport allowance retrospective to 1 April 2015.
Leave pay terms and conditions have also been revised.
Wescoal’s main business is mining, processing, selling and supplying coal.
Coal product is mined, sourced and supplied to clients in local industry including power generation, manufacturing and petro-chemicals sectors.
It aims to be a “leading junior coal miner with a sustainable resource base and a coal trading operation”.
IOL