HomeGoldProducers table latest offer as gold wage negotiations continue

Producers table latest offer as gold wage negotiations continue

The Minerals Council South Africa on behalf of the country’s gold producers on Thursday 2 August tabled its latest wage increase offer to the trade unions as gold wage negotiations continue.

On Wednesday, 1 August, the mining companies responded further to the unions’ demands and queries, and indicated where they could not consider increases. In turn, the unions have reconsidered some of their demands. Certain areas have also been referred to process groups for further engagement.

On Thursday, 2 August 2018, the companies tabled revised offers over a period of three years. Given that the four different companies find themselves in different circumstances, the companies have again tabled different offers.

On wages, for the first year, these offers range between:

  • 6% and 7.2 % for category 4 underground employees; and
  • 5% and 4.5% for miners and artisans, and officials.

Chief Negotiator on behalf of the gold producers, Motsamai Motlhamme noted that despite the current precarious position of the industry as a result of a stagnant gold price, rising costs and falling profitability, the offers made today are credible, and – at the entry level – well above the current CPI rate of 4.6.

Motlhamme urged the unions and employees to “carefully consider” the offers.

“Only by ensuring the sustainability of the industry will mines remain viable and able to sustain jobs,” he said.

In addition to the wage demands, the gold producers have also made concessions on the following non-wage demands, including living out allowances; meal interval allowances; upgrading category 4 supervisors to category 5; and severance pay.

The gold wage negotiations are underway between producers, AngloGold Ashanti, Harmony, Sibanye-Stillwater and Village Main Reef, and representative unions, the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM), Solidarity and UASA.

Negotiations will continue on 15 August 2018.

Chantelle Kotze
Chantelle Kotze is a Johannesburg-based media professional. She is a contributor at Mining Review Africa (Clarion Events - Africa) and has created content for the media brand over the past 6 years.