Johannesburg - The two biggest unions in the gold sector have rejected the final wage offer tabled by gold producers paving the way for the possibility of a strike as the companies said there would be no further offer.
Members of the National Union of Mineworkers (NUM), the biggest labour union in the industry, have denounced the final deal tabled in wage negotiations, according to a person familiar with the discussions.
“The Harmony offer has been rejected by members,” said the person, who requested anonymity because the information was not yet public.
“At Sibanye and AngloGold, workers have indicated they are prepared to accept the R1 000 increases if they are considered salary rather than an allowance and benefits are raised as well.”
The Association of Mineworkers and Construction Union (Amcu), the second-biggest union in the sector, formally rejected the offer yesterday as expected.
Abdul Davis, the head of research at Kagiso Asset Management, said Sibanye and AngloGold, where Amcu had the highest representation at 38 percent and 35 percent, respectively, would be the most negatively impacted from a sentiment perspective, and a possibility of their workforce embarking on an unprotected strike would be high. Together they employed 70 percent of employees in the sector.
The Chamber of Mines, which negotiates on behalf of AngloGold Ashanti, Harmony Gold Mining and Sibanye Gold said it was disappointed at the rejection. “We are clearly disappointed that Amcu has not accepted our offers,” chief negotiator for the chamber Elize Strydom said.
“Our offers were made after serious consideration and despite the worsening financial position of the industry. While we are willing to continue to engage, we must reiterate that the quantum of our offer is final,” Strydom said.
Sibanye and AngloGold, the world’s third-largest producer, proposed on July 30 to raise monthly pay for entry-level workers by R1 000 a year over three years. Harmony offered a R500 increase. Basic pay is currently about R5 800.
The NUM, Solidarity and Uasa unions would respond to the wage proposal by Friday, Strydom said.
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