Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
While miners in Chile, South Africa, Indonesia and Mexico downed tools recently to strike for higher wages, those working in the Canadian mining sector can take comfort in knowing that their pay packets are expected to grow fatter than workers in other Canadian industries.
According to a report by consulting firm Hay Group, which surveyed 660 Canadian employers, companies expect to see wages climb 2.8 per cent on average across their work force in 2012, with salary gains of 3.8 per cent in the mining sector and 3.7 per cent in the oil and gas field.
“The high-paid sectors of mining and oil and gas are a percentage point higher [than the average], and the low-forecast sectors of government and health care are a percentage point lower [than average],” said Karl Aboud, director of the Canadian Reward Practice at Hay Group.
Aboud is quoted in the story saying that employees at mining and energy companies have an advantage because the labour market for these workers is tight, the companies are making good profits and mining firms can afford wage increases because capital expenditures are typically higher than salaries.
The report said that Alberta, Newfoundland and Saskatchewan, all provinces with strong mining and energy sectors, will lead the country in wage growth, at between 3.2 and 3.4%.
