Trade union Solidarity, in a submission to the Competition Tribunal on Tuesday, said it was greatly concerned about the fact that mining company Kumba Resources’ workers were not consulted on the process of unbundling Kumba.
Kumba spokesperson Trevor Arran wasn’t immediately available to comment.
The tribunal is holding public hearings into the proposed formation of Kumba Iron Ore and Exxaro Resources from the mining assets of Kumba Resources and Eyesizwe Coal, as well as options on certain Anglo American assets.
Last week Friday, the Competition Commission said it was of the view that there were potential anti-competitive consequences as a result of the current cross-directorships existing among the competitors.
“The commission has concluded that given the prevalence of cross-directorships amongst Anglo, Eyesizwe Coal and BHP Billiton, coordinated market conduct being sustained post-merger is reasonably likely,” Solidarity said.
The commission added its concerns could be addressed and recommended that the merger be approved with a number of conditions.
Solidarity said the union had been informed and not consulted regarding the 3% employee share-ownership programme (ESOP) at Kumba Iron Ore and at Exxaro Resources.
The terms of the 3% should be the same as the black economic empowerment (BEE) partners, the union said.
Solidarity said that 25% of the shares must be free, to ensure that workers really do benefit.
“The trade union National, Education, Health and Allied Workers’ Union [Nehawu] is a shareholder in the company Eyesizwe Mining, the BEE partner. Nehawu, holding a 20% share, has members in the nursing profession, which means that Nehawu members will derive greater benefits from the deal then Kumba workers. Workers made Kumba into the company it is today,” Solidarity said.
Solidarity said several appeals had been made to Kumba to consult with workers on the issue, but the appeals “fell on deaf ears”. The most recent initiative is that a working committee consisting of experts from the various trade unions is to meet with Kumba on August 8, Solidarity said.
“Workers experience the unbundling as traumatic, since the way in which it has been communicated with them has been vague in the extreme,” Solidarity said. — I-Net Bridge