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Improving Labor Productivity
MiTRAQ is a platform designed for the mining industry, offerring global benchmarking and data analysis tools to help mining companies assess and improve their operational performance.
A mine in a developing country faced a risk of strike by its workforce.
The local Union was demanding a significant increase in wages.
The management believed that the workers’ salaries were on par with the industry’s leading standards.
The firm used MiTRAQ to evaluate its workforce productivity and labour cost.
Four KPIs were assessed:
- Labour Cost / Tonne Mined
- Process Labour Cost / Tonne Processed
- Tonnes Moved / Mine Operations Employee
- Tonnes Processed / Processing Employee
It was discovered that the mine’s labour cost and efficiency matched international averages, while for the jurisdiction they were in the bottom quartile.
Absenteeism at the mine turned out to be extreme.
Benchmarking results were presented to the Union.
All sides reached agreement.
The staff was reduced by 6% through a voluntary redundancy program, while others received a slight pay raise, resulting in increased labour productivity.
