Johannesburg - The Association of Mineworkers and Construction Union (Amcu) is demanding that gold mining companies should more than double the wages of entry-level workers, according to a document seen by Reuters yesterday, raising the stakes for pay talks set for early next month.
Amcu’s demands far exceed those made by the National Union of Mineworkers (NUM).
Amcu has emerged as the dominant union on the platinum belt but has made fewer inroads at the gold producers. It represents about 17 percent of workers in the gold sector compared with the NUM’s share of more than 60 percent.
Amcu president Joseph Mathunjwa said yesterday that he was not sure if his union would today sign up to a mining stability pact being brokered by Deputy President Kgalema Motlanthe, the chief government negotiator on the mining crisis.
Amcu also said it had not yet made its proposal to platinum mining companies.
This year’s wage talks are widely expected to be among the toughest yet as worker militancy coincides with falling commodity prices and shrinking company margins.
Amcu called for the “entry-level minimum for all underground workers to be R12 500 across all mining houses”, according to the document that was submitted to gold producers on Monday.
That is more than double the current average minimum rate of about R5 000. The NUM wants a minimum of R8 000 for underground workers.
Amcu said in its submission to gold producers that “on a daily basis workers experience a declining standard of living and the dream of sharing in the wealth of the country remains a pipe dream”.
It continued: “We believe therefore that the minerals of this country must now benefit the people.”
Amcu’s battle cry has been a “living wage”. It has poached tens of thousands of members from the NUM by tapping discontent among workers.
Its demands to the gold producing companies include more than doubling the living out allowance to R4 000 a month. The allowance is provided to miners who do not live on company premises.
Amcu also wants some of its workers’ job categories raised, which would automatically boost their wages.
For several years mining boardrooms have agreed to pay increases above inflation, putting extra pressure on profits, which are being squeezed as commodity prices sink.
Even above-inflation wage increases do not go far for mine workers, who typically support many dependants living far from the mines.
The price of spot gold is down more than 23 percent this year. With gold at its current price, many shafts are barely profitable. - Reuters