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South Africa's mines: gulf between employees above and below ground South Africa's mines: gulf between employees above and below ground
(12 days later)
In February, a horse named Patriot reared and threw its rider. It was an unremarkable accident, the like of which is a frequent risk for amateur riders, yet it created international headlines. That was because the rider was Cynthia Carroll, chief executive of mining group Anglo American. Her resultant broken hip barred her from foreign travel for two months, thereby ruling her out of the international commitments that seem to be a compulsory part of the chief executive's itinerary.In February, a horse named Patriot reared and threw its rider. It was an unremarkable accident, the like of which is a frequent risk for amateur riders, yet it created international headlines. That was because the rider was Cynthia Carroll, chief executive of mining group Anglo American. Her resultant broken hip barred her from foreign travel for two months, thereby ruling her out of the international commitments that seem to be a compulsory part of the chief executive's itinerary.
The unrest in South Africa's mines has highlighted the inequality between employees above and below ground. Of course bosses live more lavish lifestyles than staff in almost every facet of industry. But in the case of mining, the differences appear particularly stark, as the physical risks attached to extracting metals from the ground can be considerably more serious than a broken hip.The unrest in South Africa's mines has highlighted the inequality between employees above and below ground. Of course bosses live more lavish lifestyles than staff in almost every facet of industry. But in the case of mining, the differences appear particularly stark, as the physical risks attached to extracting metals from the ground can be considerably more serious than a broken hip.
Lonmin's South African miners have just returned to work after a six-week stoppage at the platinum producer in which 45 people were killed – industrial action that resulted in pay rises of up to 22%, taking salaries to around £900 a month. But even that scale of pay rise is not unique within the industry.Lonmin's South African miners have just returned to work after a six-week stoppage at the platinum producer in which 45 people were killed – industrial action that resulted in pay rises of up to 22%, taking salaries to around £900 a month. But even that scale of pay rise is not unique within the industry.
Carroll was paid £2.2m for being boss of Anglo American last year, an increase of 38% on the previous year, supplemented by part-time roles: at BP she earned a further £85,000 as a non-executive director, while at Anglo American Platinum (Amplats), the world's largest platinum producer which also has suffered strikes and reopened five mines last week, Carroll was paid £77,000 as non-executive chairman.Carroll was paid £2.2m for being boss of Anglo American last year, an increase of 38% on the previous year, supplemented by part-time roles: at BP she earned a further £85,000 as a non-executive director, while at Anglo American Platinum (Amplats), the world's largest platinum producer which also has suffered strikes and reopened five mines last week, Carroll was paid £77,000 as non-executive chairman.
Lonmin boss Ian Farmer earned £1.2m last year but most of the workers' anger has been directed at miners union leader turned millionaire tycoon Cyril Ramaphosa. He was paid £61,000 as a Lonmin non-executive director last year and has come to symbolise unease about the gap between a new black elite and the poverty-stricken majorityLonmin boss Ian Farmer earned £1.2m last year but most of the workers' anger has been directed at miners union leader turned millionaire tycoon Cyril Ramaphosa. He was paid £61,000 as a Lonmin non-executive director last year and has come to symbolise unease about the gap between a new black elite and the poverty-stricken majority
Ramaphosa, also a senior figure in the governing African National Congress, has been pushed into issuing a public apology for bidding millions of rand for a buffalo cow and her calf. "Yes, I did put a bid and that was a mistake on my part," he told SAfm radio. "It was a mistake. I regret it. It was a mistake to even put up my hand to do so".Ramaphosa, also a senior figure in the governing African National Congress, has been pushed into issuing a public apology for bidding millions of rand for a buffalo cow and her calf. "Yes, I did put a bid and that was a mistake on my part," he told SAfm radio. "It was a mistake. I regret it. It was a mistake to even put up my hand to do so".
"I've been chastised by some of my good comrades, and even before they chastised me, I did admit that was a mistake. I regret it because it is an excessive price in the sea of poverty. I belong to a community and it was one of those moments when I was blind-sighted.""I've been chastised by some of my good comrades, and even before they chastised me, I did admit that was a mistake. I regret it because it is an excessive price in the sea of poverty. I belong to a community and it was one of those moments when I was blind-sighted."
Meanwhile, Anglo Gold Ashanti appears to have replaced Lonmin at the centre of the industrial dispute storm. After closing its Kopanang mine following a strike by 5,000 workers last week, the company has halted all South African operations as most of its 35,000 employees decided to join in.Meanwhile, Anglo Gold Ashanti appears to have replaced Lonmin at the centre of the industrial dispute storm. After closing its Kopanang mine following a strike by 5,000 workers last week, the company has halted all South African operations as most of its 35,000 employees decided to join in.
City grandee and UK Financial Investments director Michael Kirkwood serves on Anglo Gold Ashanti's board, where the chief executive, Mark Cutifani was paid £1.6m last year. Only last week, he told the Financial Times that his company had maintained a "very strong and positive dialogue with our employees" — albeit before adding that continuing wage settlements like Lonmin would mean job losses.City grandee and UK Financial Investments director Michael Kirkwood serves on Anglo Gold Ashanti's board, where the chief executive, Mark Cutifani was paid £1.6m last year. Only last week, he told the Financial Times that his company had maintained a "very strong and positive dialogue with our employees" — albeit before adding that continuing wage settlements like Lonmin would mean job losses.
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