81% increase for Sasol's Executive Directors impel Solidarity members to strike

Information that the Executive Directors of Sasol earned 81% more during the 2009/10 financial year than in 2008/09 impelled Solidarity's members to join the strike in the petroleum sector, trade union Solidarity said today. Solidarity's members in this sector, specifically at PetroSA will strike from tomorrow. Employees at Sasol Secunda are also expected to join the strike soon.

According to Dirk Hermann, Deputy General Secretary of Solidarity, the wage increases which Sasol's Executive Directors received between 2009 and 2010 (including incentive bonuses) range from 62,6% to 100,1%. This is approximately 13 to 21 times the current inflation rate.

Outgoing CEO Pat Davies' remuneration increased from R10,3 million in 2009 to R20,6 million in 2010. In 2009, approximately R1,6 million was approved for Davies as incentive bonuses as opposed to R10,1 million for 2010. This R10,1 million was payable in the financial year June 2010 to June 2011. This remuneration does not include long term incentive bonuses. Solidarity's calculations only include those Executive Directors who were employed for the full term of the relevant financial year.

"Solidarity represents approximately 40% of the employees in the bargaining unit at Sasol Synfuels in Secunda. These members are schooled workers and represent artisans and process controllers," Hermann explained. "Since we know that our members represent critical skills and that a plant cannot function without these skills, we remain cautious with talks of a strike. If our members consent to strike, the situation is extremely serious," he added.

"As all consumers in South Africa, our members are under a lot of financial pressure," Hermann said. "Employees feel that their expenses on goods and services in their personal inflation basket increase more rapidly than the official inflation rates. Administered prices which were recorded at 11,3% in May remains one of the biggest causes. Administered prices include items such as electricity, water, education and fuel."

According to Hermann, everyone feels the pressure and when it comes to light that Executive Directors have received excessive remuneration, it is difficult to convince employees not to demand increases well above inflation rates. "Executive Directors and top management consequently create an atmosphere for employees to strike and then they act surprised when a strike occurs," Hermann said.

According to Solidarity, the climate between employers and employees is so negative that no progress has been made during negotiations.

Statement issued by Dirk Hermann, Deputy General Secretary: Solidarity, July 13 2011

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