Welkom - The second-biggest union in South Africa’s gold industry rejected a pay offer made by operators including world number 3 producer AngloGold Ashanti, stopping short of calling a strike.
Association of Mineworkers and Construction Union members gathered at a mass meeting at Sibanye Gold’s Beatrix mine Sunday to consider the final wage proposal tabled by producers including Harmony Gold Mining. The union speaks for about 30 percent of the 94 500 employees represented in the talks.
“If we need to go march at their offices we will,” Amcu president Joseph Mathunjwa told thousands of workers who gathered at the stadium next to a mine shaft about 300 kilometers (186 miles) south of Johannesburg.
AngloGold and Sibanye proposed on July 30 to raise monthly pay for entry-level workers by R1 000 ($79) annually for the three years started July 1.
Harmony offered a R500 increase. Basic pay is currently about R5 800. Living-out allowances will be raised by R100 in the first year from R2 000 now.
The crowd on Sunday held banners with AMCU’s demand of R12 500 a month for basic pay, more than double the current wage. Only one of the union leaders from the mines who provided feedback on the stage said workers should take the offer.
The National Union of Mineworkers, the biggest labor group in gold, lowered its demand last month for basic pay to R9 500. Still, that’s at least 60 percent more than the current wage.
“The way forward is go back to employer and give them the feedback that their offer has been rejected by the majority of AMCU members,” Mathunjwa told reporters after meeting. The union will meet again after it hears back from the companies, he said.
The NUM, Solidarity and UASA unions will respond to the wage proposal by August 7, Elize Strydom, the chief negotiator on behalf of the producers at the Chamber of Mines, told reporters Friday. The companies have said their last offer is final.