Sibanye signs wage accord but AMCU stays out

[miningmx.com] – Sibanye Gold has signed a three year wage agreement with the National Union of Mineworkers (NUM), Solidarity and UASA after finally giving up on reaching a deal with the Association of Mineworkers and Construction Union (AMCU).

AMCU had previously refused to reach wage agreements with the other major South African gold producers represented by the Chamber of Mines and the union voted on October 11 to go on strike at Sibanye, AngloGold Ashanti and Harmony although it is not clear when such strike action might take place.

The wage offers were accepted by the other unions at AngloGold Ashanti and Harmony on October 2.

Speaking on behalf of the gold producers, Chamber of Mines executive Elize Strydom commented, ” Sibanye had indicated that it wanted to sign an agreement with all four unions in the interest of labour stability and the sustainability of the industry.

“Throughout the process, Sibanye has made every effort to engage meaningfully with all parties including AMCU and, indeed, extended the negotiations period in an effort to reach a mutually beneficial agreement.

“After further extensive engagement under the auspices of – and facilitated by – the CCMA it became clear that this was not possible.’

The agreement reached is on the same terms as previously offered with the lowest paid employees receiving increases of 12% in year one; 11% in year two and 10% in year three.

Miners, artisans and officials will get a 6% increase on the standard rate of pay in year one followed by 6% or CPI (consumer price index) – whichever is the greater – in years two and three.

Strydom added that, ” as advised on October 2, the wage settlements reached between the relevant companies and unions are all substantial – between 10% and 13% increases in basic wage for entry level employees in each of the three years of the agreement.

“Put differently, for entry-level employees this is an increase of between R25,000 and R30,000 per employee over the three year period.’