The Minerals Council South Africa advises Harmony Gold 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.

Together these unions represent 69% of employees within the bargaining unit at the company.

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 R700 in year one, R750 in year two and R825 in year three.

Miners, artisans and officials will receive increases of 6.3% for each year of the agreement.

In addition to the basic wage, the parties agreed to an increase in the current Living-out Allowance of R100 each year to R2 400 over the period of the agreement, as well as the re-introduction of a Service Increment for officials of 0.5% from the second year of the agreement going forward.

Harmony currently employs 31 000 employees in the bargaining unit.

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 R50 000 over the three-year period by increasing the benefit by R10 000, R 5 000 and R 5 000 over the next three years respectively
  • Incremental increases in the current minimum medical incapacity benefit 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 four to eight employees who choose to join a company recognised medical scheme to 60% for employers and 40% for employees
  • The company will pay female 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 and Village Main Reef; and AMCU, the NUM, UASA and Solidarity are continuing under the auspices of the Commission for Conciliation, Mediation and Arbitration.

Chief negotiator for the Minerals Council, Motsamai Motlhamme, welcomes the agreement.

“This is a positive sign of co-operative engagement between the representatives of workers and the gold companies that will advance the interests of both sets of parties.”