File Image: IOL

JOHANNESBURG - South Africa's National Union of Mineworkers (NUM) said on Thursday it had signed a three-year wage agreement with coal producers, avoiding a strike that had loomed in the sector.

NUM said in a statement the deal, which will see wages rise by up to 7.5%, was effective from 1 June 2017 for officials in most coal firms, and 1 July 2017 for lower level employees, miners and artisans.

"The NUM wishes to express its sincere gratitude to its members in the coal sector for the manner in which they behaved during the negotiation period until they gave us the mandate to sign this wage agreement." 

Earlier this month, the NUM threatened a strike in the coal sector after wage talks with producers stalled, a move which would have hit output of a commodity that generates 85 percent of South Africa’s electricity.

Coal producers that signed the deal include Anglo American Coal SA, Exxaro Coal, Glencore,  Msobo Coal, Koornfontein Mines and Delmas Coal.

- African News Agency