File Image: IOL

JOHANNESBURG - Solidarity has signed a collective agreement on wages and other conditions of service for the next three years on behalf of its members at Exxaro Resources, the trade union said on Thursday. 

The increase, signed on Wednesday, would be effective from July 1, 2017 and valid until June 30, 2020. According to the agreement, the increase will be backdated. 

Solidarity said the agreement concluded with employers in the mining industry comprises an increase of 7.5% to 10% depending on the employee's job level during the first year, and during year two and year three employees' wage component will increase by 7.5% across the board. 

Solidarity's deputy general secretary for the mining industry, Connie Prinsloo, said the parties agreed to a contribution of 60% by the employer to the medical aid benefit of the main member and 50% in the case of dependants. 

Also included in the agreement is a favourable adjustment to family leave and to the subsistence allowance.

"We are delighted by the agreement as it provides for stability in the job environment and it offers job security to our members," Prinsloo said.

Last week, The National Union of Mineworkers (NUM) signed a three year wage agreement with Exxaro which comprises of Grootgeluk and Leeuwpan mines respectively workers.

The NUM and Exxaro agreed on wage increase of 10%, 8.5% and 7.5% for 2017 and 7.5% for both 2018 and 2019.