A number of South African coal producers have successfully reached an agreement with the National Union of Mineworkers (NUM) in terms of wages and conditions of service.

These mines, represented by the Chamber of Mines during the wage negotiations include Anglo Coal, Delmas, Exxaro, Kangra, Koornfontein, Msobo and Glencore. The NUM has signalled the end to the industrial action that started on 4 October 2015, and all employees are expected to return to work by no later than Wednesday, 14 October 2015.

Both UASA and Solidarity indicated their members’ acceptance of the offer table on 14 September 2015.

The agreement was reached at the Chamber of Mines on Tuesday by the producers and the NUM, UASA and Solidarity.

Motsamai Motlhamme, head of Employment Relations at the Chamber of Mines says: “Given that the industry is facing subdued demand and both price and cost pressures, the agreement reached is at the limit of what is affordable. After months of negotiations, we have reached a settlement which represents a reasonably balanced outcome in the best interests of employees and the industry.”

The coal wage negotiations agreement is for two years, effective 1 July 2015, in terms of which:

  • Most category 4-8 employees will receive increases, staggered over a period of time, of between R750 and R1 000 per month in year 1 and guaranteed increases of 7.5% in year 2.
  • Most employees in the higher categories will receive increases of between 5% and 7.5% in both years.
  • Increases to the living out allowance and housing allowance vary from company-to-company.

Motsamai Motlhamme commended all parties for the peaceful conduct during the strike almost without exception.

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