Gold mines table final wage offer

A mineworker works at the rock face at the Impala Platinum mine in Rustenburg, South Africa, on Wednesday, June 4, 2008. Impala Platinum Holdings Ltd is the world's second-biggest platinum producer. Photographer: Nadine Hutton/Bloomberg News

A mineworker works at the rock face at the Impala Platinum mine in Rustenburg, South Africa, on Wednesday, June 4, 2008. Impala Platinum Holdings Ltd is the world's second-biggest platinum producer. Photographer: Nadine Hutton/Bloomberg News

Published Jul 30, 2015

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Rustenburg – Four gold producers tabled their final three year wage offer to four trade unions on Thursday.

AngloGold Ashanti, Evander Gold Mines, Harmony, and Sibanye Gold tabled their final offers in respect of wages and benefits to the Association of Mining and Construction Union (Amcu), the National Union of Mineworkers (NUM), Solidarity and United Association of South Africa for the period July 1, 2015 to June 30, 2018.

“We believe this is a generous offer which is above inflation and at the limit of what this industry can bear whilst remaining sustainable. It is our final offer, and we hope our employees will accept it so we can move forward together to confront the challenges the industry faces,” said Dr Elize Strydom, speaking for the gold producers.

She said through this final offer, each of the companies had ensured that the guaranteed pay of entry level employees would reach between R12 800 and R13 200 per month in the third year of the agreement.

The producers asked unions to commit to the shared goal of maintaining a sustainable industry capable of securing employment, and delivering returns to all stakeholders for the longest time possible.

The offer has been made on the basis that it be accepted by all unions.

“The producers ask all parties to commit to building a culture of sustainable mining and developing measures to improve performance and efficiencies at our operations,” said Strydom.

“Given their commitment to the sustainability of the sector, and transparency in their relationship with employees, the producers have pledged to continue sharing their financial models to facilitate constructive dialogue.”

AngloGold Ashanti and Sibanye (which together employ around 70 percent of employees), have tabled a final offer of a R1000 increase per month for each year for category 4 to 8 employees and “B-lower officials”. They are also offering a R100 per month increase in the “living-out allowance” in the first year.

The companies offered a six per cent increase to miners, artisans and officials in the first year, and an increase of six percent or CPI (consumer price index), whichever is the greater, in the remaining two years.

Evander Gold Mines tabled a R750 increase for category 4 to 8 employees and “B-lower officials” for three years. The company is also offering a R100 per month increase in the living-out allowance in the first year.

To miners, artisans and officials, the company offered a six percent increase in the first year, and six percent or CPI (whichever is the greater) in the last two years.

Harmony offered a R500 increase for category 4 to 8 employees and B-lower officials over three years, and a R100 increase in the living-out allowance in the first year.

The company tabled an offer of a 4.6 percent increase for miners, artisans and officials in the first year, and 4.6 percent or CPI (whichever is the greater) in the remaining two years.

Harmony also offered a gain share of five percent from the first rand of profit on a quarterly basis. Profit will be defined as revenue in South Africa minus all South African costs, excluding dividends.

The companies propose that a task team be established to investigate the extension of the retirement age for underground employees to 63 years of age. The task team must complete a written report on its findings and recommendations within six months.

ANA

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