[miningmx.com] – There was relief and trepidation for South Africa’s gold producers today after a wage increase of up to 13% was accepted by unions – except the Association of Mineworkers & Construction Union (AMCU) which rejected it.
The National Union of Mineworkers (NUM), UASA and Solidarity today signed a three year deal, dated from June 2015 – an outcome achieved without resorting to the strike action that some analysts believed was likely when talks went to dispute during July.
However, AMCU’s rejection of the wage offer raises the possibility that it could launch an unprotected strike. In addition, the wage increase cannot be applied at Sibanye Gold which made the proposal conditional on all unions agreeing to it.
This is owing to the large proportion of AMCU members at its mines. In effect, only 49% of mineworkers at Sibanye Gold mines have currently accepted the deal.
Evander Gold Mines, which is owned by Pan African Resources, is also still in bilateral negotiations with the NUM.
Elize Strydom, lead negotiator at the Chamber of Mines, urged AMCU to reconsider. “This is the only deal that will be agreed,’ she said. “We cannot and will not negotiate different deals with different parties,’ she added.
The NUM, UASA and Solidarity represent the majority of employees at AngloGold Ashanti and Harmony Gold, and about 62% of employees in the gold companies represented by the Chamber of Mines. A further 7% of employees are not unionised.
“As a consequence, and in terms of the Labour Relations Act, AngloGold Ashanti and Harmony will extend the agreement to all employees within the bargaining units, irrespective of their union affiliation,’ said the chamber in a statement.
AMCU has been granted a certificate of non-resolution by the Commission of Conciliation, Mediation and Arbitration (CCMA) which allows it to call a strike.
However, a “peace clause’ in the wage agreement means unions have agreed not to strike for three years.
As a result, any strike undertaken by AMCU would be construed as a contravention of the wage agreement, and would be declared unprotected, said the chamber. AngloGold and Harmony would attempt to persuade AMCU to reconsider its position, it added.
The basics of the wage agreement reached with NUM, Solidarity and UASA is for increases of between 10% and 13% in basic wages for entry level employees in each of the three year of the deal.
This was equivalent to an increase of between R25,000 and R30,000 per employee over a three year period, the chamber said.
Guaranteed wages for entry-level employees, excluding bonuses and overtime, will rise to between R97,000 and R106,000 per year in the third year. Incentive-based pay such as bonuses and overtime is a large part of the total wage bill and can boost employees’ take-home pay, the chamber said in its statement.
“The gold industry is in a perilous state, with more than 50% of operations currently marginal or not making a profit. More than 30,000 jobs have been lost in our industry over the last decade, with many more jobs currently under threat,’ said Strydom.
“The offers on the table are substantial and are the most our industry can afford,’ she added.
There were a number of non-wage points also agreed such as an increase in medical incapacity benefit, an increase in the guaranteed minimum severance pay, and an extension of the retirement age for surface workers to 63 years.
A task team will investigate extending the retirement age for underground employees to 63 years from 60 years.
Graham Briggs, CEO of Harmony Gold, hailed the agreement saying gold companies had
“… achieved what we set out to do” by signing a deal that was economically sustainable and would limit job losses.
