PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Reality
 
Comments: 31
Article views: 1261
 
 
Latest Badges:


 
View all Reality's badges.
 

Platinum wages - is it affordable?

10 June 2014, 10:52
The background

Much has been written about  the Platinum strikes. There are a lot of people saying that the mines should just pay the R 12 500 and a lot saying that it is unaffordable. So what is it really?

On the one hand miners need to earn a decent wage to live and on the other hand investors need a decent return otherwise they wont invest.

In this article I am going to try and give some answers to these. Information in what the miners are earning differ widely from R 5000 a month (claimed by the miners) to R 9000 a month (claimed by the mines). From my understanding it looks like R 5000 is the amount (after deductions and with no bonuses) a miner will get out. The R 9000 is probably what it costs the company to keep these workers employed.

Furthermore it looks like the miners want the R 5000 to go up to R12500. The big question is..is it affordable? The mines say it is not and the miners say it is very affordable because the mine manangers and the CEO get paid "millions".

If the miners want R 12500 then the cost to company is probably around R 18000. Remember the miners want the amount after deductions and because they would now be earning 250% of their current earnings

(12500/5000) * 100 = 250%

they would have to start paying tax and that has to be absorbed by the mines.

To determine if R 12500 is affordable to the mines we do not need most of the stuff above as we could do it by using a very simple ratio calculation..let me explain..

Source

The mines have created a website
http://www.platinumwagenegotiations.co.za/

On it they display the revenue lost by the miners as well as the wages lost by the miners. I am going to use these figures for the calculations as I think they are reasonably accurate. Currently the revenue lost stands at R 22 billion (rounded upwards) and the wages lost stand at R 10 billion (rounded upwards). The rounding does not have much of an influence, it only helps to keep it simple. So let us see if it is affordable.

Revenue includes wages which means from the R22 billion the companies lost, they would have to pay out R10 billion in wages which would leave them R12 billion to pay everything else.

BEFORE INCREASE
Revenue R 22 billion
Wages    R 10 billion

AFTER INCREASE
Revenue R 22 billion
Wages  (12500/5000) * 10 = R 25 billion

Explanation
The R12500 is the demand
The R5000 is what they currently earn
The R10 represents the R10 billion they have lost so far.

So, by using a simple ratio calculation we can see that with a Revenue of R 22 billion, the wage bill will be R 25 billion. As the strike is nearing 6 months, we can therefor assume the mines will make a loss (before anything else is paid) of (R 22 billion - R 25 biilion) =  R 3 billion every 6 months.

I challenge everybody (including AMCU) to prove that my calculations are wrong. It is impossible to give into such demands as the wage bill is higher than the total revenue.

The ONLY reason why the miners have not accepted the offer made by the mines is a political reason because they want the mines to close down and be taken over by government.
Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
31 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Kdoggy dog
Transformation is like a plant

Transformation is at the heart of South African Sport. Its just like a hemorrhoid, this issue just won't go away,even if you wish it.  Read more...

0 comments 673 views
Community development forum in Kr...

I have been asking myself if we are really free. We are living in a democratic system under the status quo of the apartheid. That in a nutshell means we are not free. Read more...

0 comments 185 views
Submitted by
Adv Sphamandla Blose
What are we really commemorating?...

South African government is busy spending so much hosting huge events commemorating being Free, are we really free? Read more...

0 comments 219 views
Submitted by
Thomas Kolathu
(Free)dom

A single word can be used to describe the youth of South Africa currently. Read more...

0 comments 222 views
Submitted by
Grant Abbott
Freedom Day for who?

What kind of freedom is it if you still live in a shack, or have to beg for food? What good is the freedom to vote if you still feel like a refugee in your own country?  Read more...

0 comments 829 views
Submitted by
Steven Benjamin
Springbok Transformation

To the untrained eye it seems like a simple issue. Maybe it is and we’ve just complicated it by our love for drama. Whatever it is, where will the Springboks be when race is no longer an issue? Read more...

0 comments 2037 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2016 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.