Skilled artisans tempted with sign-on bonuses

JOHANNESBURG – A skills shortage in mining has prompted contractors to offer lucrative “sign-on bonuses”.

Murray & Roberts Cementation’s Gavin Dyer said the skills shortage was “absolutely the reason” that the company had advertised artisan positions offering a N$20 000 commencement bonus. The company had placed advertisements in local newspapers offering a R20 000 sign-on bonus for skilled artisans, particularly hydraulic fitters and electricians.However, the money was not a “gift” but was linked to a retention clause in their employment contracts.Trade union Solidarity said companies hiring artisans also needed to pay retention bonuses to keep their skilled employees.Deputy general secretary Dirk Hermann said: “At this stage South Africa has around a 40 per cent shortage of artisans.The challenge will be for the companies in South Africa to retain [those] skills.”Skills in South Africa are like bananas.The bigger the shortage, the higher the price,” he added.On Wednesday, Solidarity said it had told the Chamber of Mines that artisans were abandoning mines to seek more lucrative employment outside the industry, as the cost of living was so high.”It will take a special team effort to halt the skills departure for platinum and other developments, not to mention foreign countries,” it said.Meanwhile, trade unions in the gold mining sector might be headed for strike action following the failure by the Chamber of Mines to meet their demands for a 15 percent wage increase.The National Union of Mineworkers and Solidarity had declared a dispute with employers on Wednesday following deadlocked negotiations, said Hermann.”If members are not willing to accept a zero per cent wage offer, we shall approach the Council for Conciliation, Mediation and Arbitration for a strike certificate.”The two unions represent mine workers at Harmony, Gold Fields and AngloGold Ashanti gold mines.Business ReportThe company had placed advertisements in local newspapers offering a R20 000 sign-on bonus for skilled artisans, particularly hydraulic fitters and electricians.However, the money was not a “gift” but was linked to a retention clause in their employment contracts.Trade union Solidarity said companies hiring artisans also needed to pay retention bonuses to keep their skilled employees.Deputy general secretary Dirk Hermann said: “At this stage South Africa has around a 40 per cent shortage of artisans.The challenge will be for the companies in South Africa to retain [those] skills.”Skills in South Africa are like bananas.The bigger the shortage, the higher the price,” he added.On Wednesday, Solidarity said it had told the Chamber of Mines that artisans were abandoning mines to seek more lucrative employment outside the industry, as the cost of living was so high.”It will take a special team effort to halt the skills departure for platinum and other developments, not to mention foreign countries,” it said.Meanwhile, trade unions in the gold mining sector might be headed for strike action following the failure by the Chamber of Mines to meet their demands for a 15 percent wage increase.The National Union of Mineworkers and Solidarity had declared a dispute with employers on Wednesday following deadlocked negotiations, said Hermann.”If members are not willing to accept a zero per cent wage offer, we shall approach the Council for Conciliation, Mediation and Arbitration for a strike certificate.”The two unions represent mine workers at Harmony, Gold Fields and AngloGold Ashanti gold mines.Business Report