DRDGOLD has concluded a five-year wage agreement with unions at its Ergo operations, heading off strike action that had been scheduled to begin on December 18.
The agreement, signed with majority union the National Union of Mineworkers, is for a guaranteed annual wage increase of between 6% and 7.5% over the period and applies to all employees, DRDGold said on Monday.
A new 2% performance-based incentive linked to safety, production and attendance has also been included in the agreement. Employees will also benefit from improvements to the Living Out Allowance and the interest-free housing support scheme, said DRDGold.
As is standard, workers will receive backpay from July. However, they will also receive a R5,000 once-off ex gratia payment.
DRDGOLD said in December that NUM and the Association of Mineworkers and Construction Union had given notice of their intention to embark on protected strike action. The strike was subsequently suspended as negotiations progressed.
“This agreement brings much-needed certainty for our employees and for the Ergo operations,” said DRDGOLD CEO Niël Pretorius. “It reflects constructive engagement by all parties and balances meaningful improvements in employee remuneration with the long-term sustainability of the business.”
Pretorius added that the wage increases were well above current inflation and aligned with recent agreements concluded in the gold sector.
