$69,000 Dividend for Workers at South Africa Mining Firm

Posted November 30th, 2011 at 8:45 am (UTC-5)
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Employees at a South African mining firm will get payouts of up to $69,000 each — before taxes — as part of a plan meant to empower average workers.

Kumba Iron Ore, a unit of mining giant Anglo American, says the payouts stem from the company’s Envision Scheme, which gives dividends to workers below the managerial level.

The program was designed to promote black economic empowerment in a country still dealing with large racial inequities, 17 years after the end of apartheid.

In a statement, Kumba CEO Chris Griffith says the firm seeks to achieve “real transformation in our workforce and the communities around our mines.”

Kumba says 6,200 workers will receive the payouts next month. It says employees receiving the maximum payout should net more than $40,000 after taxes are paid.

The company says it is giving the workers financial training in connection with the payouts. The training will show workers how to fill out a tax return, clear their debts, and make “sustainable financial decisions” with their windfall.