Prelates say companies should focus ‘wealth sharing’ instead of ‘loss sharing’
The Justice and Peace Commission for the Southern African Catholic Bishops’ Conference has spoken out against plans by slumping mining companies to lay off thousands of workers.
“We applaud the minister of mineral resources for the initiative that he has taken and the leadership he has demonstrated to get the stakeholders in the mining sector in South Africa to explore alternatives to retrenchments and re-skilling of mine workers,” said South African Bishop Abel Gabuza of Kimberley‚ commission chairman said in a statement, Vatican Radio reported.
The commission called on the government‚ mining houses and laborers to consider broadening the terms of their engagement to include establishing a comprehensive social compact in the mining sector.
“We agree with those who argue that the current global economic environment necessitates establishment of a social compact so as to ensure competitiveness and sustainability of our mining sector that is required to create and retain jobs.
“However‚ we believe that such a social compact should be built on the principle of wealth sharing‚ and not only on loss sharing‚” Bishop Gabuza said.
“This should include the establishment of a worker sustainability wage fund during the years of super-profits to ensure adequate provision for workers when the commodity prices fall.”
The commission also stressed on the principles of putting people before profit and the common good should form the basis of the social compact.
“We have always emphasized that mining should also be about the common good — and not only what is good for shareholders at the expense of the broader society. If the mining sector is serious about a social compact‚ it should embrace these principles,” the bishop said.