Johannesburg - Anglo American Platinum (Amplats) announced on Friday the details of a three-year wage agreement it signed with the Association of Mineworkers and Construction Union (Amcu) in its Rustenburg operations.
This comes after Amcu said on Thursday that it had successfully concluded a three-year wage agreement with Amplats which reflects way above inflation and called it a victory for workers.
Inflation stands at just below 6.5 percent. Amplats confirmed that the agreement included an annual increase of R1 000, or seven percent per month in basic pay for bargaining unit employees for the three-year period. Other increases would range from 12.5 percent for the lowest paid employees, to seven percent for other bargaining unit employees in higher level bands.
The agreement would now be binding to Sibanye Gold for the next three years after Sibanye bought Amplats' Rustenburg mines for at least R4.5 billion. Amplats said this agreement, which will be backdated from July 1, had been extended to the National Union of Mineworkers, the United Association of South Africa, and non-union affiliated employees in terms of section 23 of the Labour Relations Act.
Amcu has been demanding a basic salary of R12 500 for the lowest-paid mineworkers in the platinum sector and larger living out allowances of R1 000 since 2012. Amplats said living out allowances, housing rent subsidies and home ownership allowances increase by R120 per month for each year of the three-year agreement.
“The employer's medical aid contributions would increase by 6.4 percent from 1 January 2017 and on the first of January for each succeeding year of the wage agreement by 5.5 percent,” Amplats said.
“The pensionable emolument bases for retirement and provident funds will increase by 6.4 percent from 1 July 2016 and 5.5 percent for the second and third year of the agreement.” Amplats said the thirteenth cheque would increase by the same percent as the basic wage, but off a lower base.
The platinum miner acknowledged that the wage agreement would result in an increase in the labour cost, saying the cost-to-company would increase by 6.71 percent in year one of the agreement, 6.56 percent in year two and 6.96 percent in year three. This would be an average of 6.74 percent over the three-year period.
Chris Griffith, Amplats' chief executive, said it was pleased to have reached an agreement following a constructive and collaborative negotiation process.
“The current economic environment continues to place significant pressure on platinum mining companies, as well as mineworkers, and we are glad to have achieved an agreement that is fair to our employees, benefiting the lowest paid workers the most with a 12.5 percent increase in basic pay, while still ensuring our business remains viable for the long-term,” Griffith said.
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