women solidarity

At the afternoon session of the second day of gold wage negotiations between gold producers and unions, each of the four companies tabled offers in respect of wages and benefits for the different categories represented in the bargaining units. 

In total, there were at least 137 demands tabled, 62 of which have cost implications for the companies, and many of them significant.

The companies, under the auspices of the Minerals Council, have proposed a wage agreement for three years.

Given that the four different companies find themselves in different circumstances, the companies have tabled different offers. On wages, for the first year, these range between:

  • 5% and 6.5% for Category 4 underground employees;
  • 3% and 4.5% for miners and artisans, and officials.

This is against a background of a stagnant gold price, rising costs and falling profitability of the sector. Currently, CPI is estimated at around 4.6%.

Among the key benefits on which offers or concessions have been made include:

  • Extension of the medical contribution for category 4 to 8 employees to 60% companies and 40% employees for the duration of the agreement.
  • Increase of the medical incapacity benefit to R60 000 over a three-year period.
  • Increase of R2 000 per year in severance pay.
  • Agreement to engage at a company level with the Igula Provident Fund, or any other fund, as an additional retirement fund option. This is conditional on compliance by these funds with all applicable legislation, and the interests of all employees.

Company-specific offers include:

AngloGold Ashanti

AngloGold Ashanti currently employs 8 288 people within the three bargaining units.

AngloGold Ashanti
Year 1 Year 2 Year 3

 

Cats 4-8, underground employees R450, which equates to a 5.5% increase on basic pay R475 R500

 

Miners, Artisans & Officials 4.5% CPI CPI

 

 

Harmony

Harmony currently employs 32 520 people within the three bargaining units.

Harmony

 

Year 1 Year 2 Year 3

 

Cats 4-8 underground employees R500, which equates to a 6.5% increase on basic pay R525 R550

 

Miners, Artisans & Officials 4.5 % CPI CPI

 

 

Sibanye-Stillwater

Sibanye-Stillwater currently employs 32 414 people within the three bargaining units.

Sibanye-Stillwater

 

Year 1 Year 2 Year 3

 

Cats 4-8, underground employees R450, which equates to a 5.6% increase on basic pay R450 R475

 

Miners, Artisans & Officials 3% 3% 3.5%

 

Village Main Reef

Village Main Reef currently employs 6 295 people within the three bargaining units.

Company Name Village Main

 

Year 1 Year 2 Year 3

 

Cats 4-8, underground employees R450, which equates to a 5.5% increase on basic pay R475 R500

 

Miners, Artisans & Officials 3.5 % CPI CPI

 

 

The parties will meet again on 25 July 2018, at which time the unions may seek clarity on the offers made, and respond to the offers.

 Speaking at the session, Chief Negotiator, Motsamai Motlhamme, noted that:

“The industry has sought to find a balance between employees’ expectations and preserving the long-term viability and sustainability of the industry.”