Trade union Solidarity on Thursday said in a statement that the remuneration of steel producer Highveld Steel’s directors had increased by between 50% and 200% in the previous financial year.
The trade union stated that at the same time, the company was offering its workers a wage increase of only 5%.
Highveld Steels’ profit margin increased by 1 135%, according to the union.
Approximately 2 000 workers belonging to the national Union of Metalworkers of South Africa (Numsa) and Solidarity members carried on with the second day of their strike on Thursday.
According to Solidarity’s economist, Lullu Krugel, Highveld Steel’s own financial statements show that the company increased its 2003/2004 profit margin twelve-fold, compared to the previous year.
Krugel added that during the same financial year, Highveld Steel achieved cost savings amounting to R265-million, which pushed up its profits even further.
The remuneration packages for executive directors — Highveld Steel’s top management — were increased by 50%, while the remuneration packages for non-executive directors grew by 200%, the union claimed.
Krugel calculated inflation for steel workers at around 5,8% and said that any offer below this would amount to a decrease in wages.
Solidarity’s general secretary for the steel and engineering industry — Johan Pieterse — described the disclosure as shocking.
“It is worrying to see the results and to note that Highveld Steel management is only prepared to offer a 5% wage increase to the people who brought about these profits. All that our members ask for is an increase that will enable them to survive economically. Management is clearly living in the lap of luxury, while there is no light at the end of the tunnel for our members,” he said.
Highveld Steel was not immediately available for comment. – I-Net Bridge