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NUM rejects salary cuts at NC mine

───   KATLEHO MORAPELA 11:24 Thu, 08 Aug 2019

NUM rejects salary cuts at NC mine | News Article

The National Union of Mineworkers (NUM) in the Northern Cape remains resolute that there should not be any salary cuts at the Kimberley Ekapa Mine.


This, after the mine which last week announced that it might soon shut its doors, requested all employees to take 25% salary cuts for the next three months. The CEO for Ekapa Minerals, Jahn Hohne, previously said the mine faces a possible closure and that there is a high need for an alternative business model that can be implemented immediately. The union, however, says cutting employees’ salaries is not the best solution.

NUM’s Regional Secretary, Cornelius Manhe, tells OFM News that they are opposed to this idea and that there will be no salary cuts for their members. He says following another meeting with the management of the mine, yesterday, the mine does not seem to have pursued other alternatives.


Manhe maintains that the proposed 25% salary cut across all positions is, according to the union, unfair as it will have a huge negative impact on employees at low-level positions already earning peanuts as opposed to those in managerial positions.

Hohne has, on the other hand, in a statement outlined that the proposed salary cuts came as a last resort as the mine had become economically unsustainable and unviable as a result of the world market price reduction for rough diamonds.

He said the world market price reduction equates to an approximately 20% year-on-year price decrease in dollar terms for Ekapa’s mining operations in Kimberley. This is coupled with the about R3 million per month spent on security and infrastructure costs.

He said the chances of a complete shutdown of the business are very high if urgent steps are not taken.

“We have been doing everything in our power to protect the jobs of our approximately 1 400 employees and another 600 people working on contract for the company. We have been working around the clock to find alternatives, including additional finance options, without success,” said Hohne.


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