SA gold sector edges towards wage deal

[miningmx.com] – SOUTH African unions Solidarity and UASA [United Association of South Africa] were on the verge of accepting a double-digit wage increase offer for their gold industry members.

And according to BDLive, citing David Sipunzi, general-secretary of the National Union of Mineworkers (NUM), there’s hope that his union is edging towards acceptance of an offer which would bring four months of negotiations to a close.

“Both UASA and Solidarity have indicated their intention to accept the offer pending final consideration this evening,” said the Chamber of Mines in a statement. “The companies expect further feedback from AMCU [Association of Mineworkers & Construction Union] and the NUM,” it added.

The chamber represents AngloGold Ashanti, Evander, owned by Pan African Resources, Harmony Gold and Sibanye Gold. “Further discussions between all the parties will continue tomorrow [October 2],” the chamber said in its statement.

The position of AMCU, however, is unknown – a crucial factor in that Sibanye Gold’s chances of concluding a deal is conditional on all unions accepting the offer, mainly because it has the largest proportion of AMCU members among its workforce.

The feeling, however, is that there’s no appetite among workers for a strike as evidenced by the prolonged time talks have remained under the control of the Commission for Conciliation, Mediation and Arbitration (CCMA) rather than accelerating towards a strike, as in the platinum sector talks in 2014.

“Ultimately, Joseph Mathunjwa [president of AMCU] will decide because of his political leanings and hatred of the NUM,” said a gold industry source.

BDLive said that Sipunzi was seeking final concessions before sealing a deal that would end months of negotiations and prevent strike action in the sector.

It said that the gold producers had tabled separate wage offers based on their individual financial circumstances, but all represent double-digit wage increases over three years for entry-level underground workers.

Miners, artisans and officials will receive 6% annual wage increases at all the companies, if they accept the offer, said BDLive.

According to a chamber statement on September 15, the gold producers’ revised offer will ensure that entry-level, underground employees will receive guaranteed pay of between R13,728 and R14,611 per month in the third year of the agreement.

This equates to total increases for entry-level, underground employees of between R2,869 and R3,552 over the duration of the agreement.

The “final three-year wage offer’ made on July 30 ensured that the guaranteed pay of entry level employees would reach between R12,800 and R13,200 per month in the third year of the agreement.

Said Elize Strydom, of the chamber: “Concluding this agreement will make a significant difference in the lives of employees while ensuring the sustainability of the industry as far as possible and would demonstrate to our country and indeed the world that all stakeholders believe in the future of this industry and in the future of those dependent on it for their livelihoods”.