AngloGold CEO Says South Africa Should Link Pay to Productivity

Mark Cutifani, chief executive officer of AngloGold Ashanti Ltd., the world’s third biggest gold producer, comments on proposals for South Africa’s economic growth strategy, including wage and executive pay policies.

The plans by Minister of Economic Development Ebrahim Patel call for a pact between government, business and labor to create jobs and enhance economic competitiveness. It proposes workers earning between 3,000 rand ($423) and 20,000 rand a month agree to increases slightly above inflation, while pegging gains for those earning 20,000 to 45,000 rand to the inflation rate.

“The minister is trying to scratch on an issue which is about responsible wage bargaining and it’s a reasonable request of all of us in society. However, to ask a group to not have wage rises to reflect productivity improvements I don’t think is the right way to go about things.”

“The country has to focus on productivity. The way we create jobs, the way we create an affluent society is that we have got to improve productivity, then we are able to pay better wages that benefit the country. I understand his comments of balance whether at union level or executive level.”

“From a senior executive point of view, we are in the world trying to compete for the best executives and we are trying to keep them in South Africa. We disadvantage ourselves with respect to our young leaders.”

To contact the reporter on this story: Ron Derby in Johannesburg at rderby1@bloomberg.net

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net

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