HomeGoldHarmony Gold concludes 3-year wage agreement

Harmony Gold concludes 3-year wage agreement

Harmony Gold Mining Company has concluded a three-year wage agreement in respect of wages and conditions of service for the period 1 July 2021 to 30 June 2024.

The wage agreement was agreed with AMCU, the Coalition (comprising the NUM, UASA and Solidarity) and NUMSA.

Harmony CEO, Peter Steenkamp said:

“This historic wage agreement reflects the strong partnership between Harmony and organised labour, demonstrating our commitment towards our long-term sustainability and our people. We would like to thank everyone involved for engaging constructively and keeping everyone’s best interests at heart.”

The agreement allows for the following wage increases:

  • Category 4 to 8 employees will receive a wage increase of R1,000 for each year of the wage agreement. This translates to an average increase of 8.4% for employees across these categories.
  • Miners, Artisans and Officials will receive a wage increase of 6% of their basic wage for each year of the agreement.
  • The total average wage increase negotiated is 7.8% in year 1, 7.4% in year 2 and 7.0% in year 3.
  • 98% of Harmony employees are part of the bargaining unit covered by this wage agreement.

In addition to the basic wage increases mentioned above, the parties have agreed to the following benefits:

  • As part of Harmony’s drive to promote home ownership, a housing allowance will be introduced for the benefit of employees who choose to purchase a residence or who have already entered into bond agreements. The housing allowance will be R2,750 in year 1 and increase incrementally each year up to a maximum value of R3,240 in year 3.
  • Employees not eligible for the housing allowance will receive a living-out allowance of R2,500 in year 1, which will increase by R100 in year 2 and in year 3 respectively. All employees will be eligible for either a housing allowance or a living-out allowance, but not both.
  • A number of non-wage related and process issues have been agreed to, including: maternity and paternal leave; medical incapacity and medical aid benefits.

This wage agreement was reached outside the auspices of the Mineral Council’s central bargaining forum and was marked by way of an in-person signing ceremony to allow all parties to participate in and witness the signing of the agreement.