The Minerals Council South Africa advises that Village Main Reef has concluded a wage agreement with the National Union of Mineworkers, Solidarity and UASA.
The agreement is in respect of wages and conditions of service for the period 1 July 2018 to 30 June 2021.
These three unions represent 76% of employees within the bargaining unit of around 6,400 employees.
The Association of Mineworkers and Construction Union (AMCU) is still considering the offer.
The three-year agreement, concluded under the auspices of the Minerals Council, allows for increases to the basic wage of Category 4-8 employees of R575 in each of the next three years.
Miners, artisans and officials will receive increases of 4.25% in the first year of the agreement, and increases equal to the CPI in each of the following two years.
For underground entry level employees, this is a 7% increase in the first year.
In addition to the basic wage, the parties agreed to an increase in the Living-out Allowance for Kopanang employees amounting to R100 in September 2018, and R50 in each of the two subsequent years, taking the total to R2,300.
Those at Village’s Tau Lekoa mine already receive that amount.
Non-wage items agreed
In addition to the wage increase, the following additional non-wage issues have been agreed by the parties:
- Incremental Increases in the minimum severance payment to R36,000 over the three-year period by increasing the current benefit by R2,000 a year
- Incremental increases in the current minimum medical incapacity benefit of R55,000 to R60,000 over the three-year period by increasing the benefit by R1,500, R 1,500 and R 2,000 over the next three years respectively
- Extension of the medical contribution concession for category 4 to 8 employees who choose to join a company recognised medical scheme to 60% for the employer and 40% for employees for the duration of the agreement
- The company will pay women employees four months paid maternity leave with the option of spreading the four months paid maternity leave over a period of six months
Wage negotiations in respect of Sibanye-Stillwater with AMCU, the NUM, UASA and Solidarity are continuing under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA).
Agreements involving AngloGold Ashanti and Harmony were reached previously.
Minerals Council chief negotiator, Motsamai Motlhamme, welcomed this further step towards a comprehensive set of agreements in the gold mining sector.