Trade union Solidarity and Kumba Resources started the first day of their annual wage negotiations with Kumba tabling an offer of 4%, while Solidarity demanded an increase of 12%. The Solidarity union said in a statement "Kumba's offer to workers at the bottom levels puts them under the breadline in South Africa."

Solidarity spokesperson Mr Reint Dykema said "Last year Dr Con Fauconnier, CEO of Kumba, received a 35% increase on his basic salary and a 19.8% increase on his overall remuneration package."

Solidarity substantiated its demand for a 12% increase by insisting that workers be compensated for current increases in the cost of living. During wage negotiations the union has started to use its worker inflation measure, which factors in the price increases that workers face directly, rather than CPIX. CPIX is the measure the South African Reserve Bank uses for inflation targeting and is consumer inflation less the effect of interest on mortgages.

Kumba is the world's fourth largest exporter of iron ore, which the company exports through the port of Saldanha. The company is planning expansions with projects such as Sishen South and the GG6 project at Ellisras on the cards.