Coal strike ends

[miningmx.com] — THE striking employees of coal miners would return to work on Wednesday, following an agreement on wages between the Chamber of Mines (COM) and labour unions.

The COM said on Monday it has signed a two-year wage agreement with the National Union of Mineworkers (Num), Solidarity and Uasa, whereby – for most companies – entry level wages would increase by between 10% and 10.5%. Miners, artisans and officials would receive an 8% salary increase, while operators would get 9% more.

The increases are backdated to July 1. COM spokesperson Jabu Maphalala said the principle of no work, no pay, would be applied to calculate the July-salaries of all workers who took part in the week-long strike.

As for 2012, the average wage increases in 2012 are 7.5% for miners, artisans and officials, and 8.5% for operators. Entry level wages would increase by 10%. Prior to the strike, the Num was originally looking for a 14% increase.

The coal companies involved were Anglo American Thermal Coal, Delmas Coal, Exxaro Coal Mpumalanga, Kangra Coal, Optimum Coal as well as Xstrata Coal.

According to a statement released by the COM, the parties have also agreed to increase the employer contributions to medical aid schemes, as well as increases in housing allowances. Num spokesperson Lesiba Seshoka said these increases were company specific.

As for medical aid contributions, Anglo would continue to pay 60% of members’ contribution, which would rise in line with medical inflation, Seshoka said. Delmas Coal, as another example, would increase its contribution by a fixed rate of 6%.

The COM said “it is expected striking employees will start returning to work on Tuesday”, but Seshoka said most workers would only be back by Wednesday.

Seshoka said discussions between unions and employers in the gold industry have started Monday afternoon and would continue into the night. “We hope to find a resolution, but it all depends on the process,’ he said.