JULIUS Malema and his followers should spend more time on economics than in inciting miners. They should realise the price of and demand for minerals mined are governed by overseas markets that purchase our minerals.
Productivity is controlled by our mines, and wages and salaries determine whether the mine is profitable or not. If these push the mine into a loss, the mine has no choice but to shut down.
This will result in reduced export revenue for the country, less foreign investments (investors will not put money into an unstable commodity), less money in pension funds for South African citizens (shares make up a large portion of most pensions funds) and ultimately in higher unemployment figures as many miners will be retrenched.
One should remember that mines create jobs for a large portion of the population.
It is therefore in the interests of all that an amicable situation is arrived at and not one of demanding minimum salaries that will not work.
Malema is also remembered for singing "shoot the boer" and we now have a situation where the number of farmers has been reduced to approximately a third, resulting in many farm workers being unemployed and South Africa having to import food. When everyone is unemployed who is going to pay tax for essential services?
Pierre Cerff, St Francis Bay
Letters
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