[miningmx.com] – THE National Union of Mineworkers (NUM) has concluded a dramatic volte face on its hardline wage stance for at least 4,500 of its gold industry members agreeing to much lower increases at Village Main Reef and Evander Gold Mine, owned by Pan African Resources.
The union, which had shown little interest in lowering its 60% wage increase tabled in June, has agreed to an 8% annual increase for entry-level workers and a 7.5% lift for miners, artisans and officials in the higher category 6 to 8 levels.
Charmane Russell, spokesperson for the Chamber of Mines which was involved in brokering the agreements, said it wasn’t unusual for chamber members to sheer off into separate wage pacts.
In the case of Village Main Reef, which owns the Tau Lekoa mine near Orkney, it was motivated to improve on the chamber’s take-it-or-leave-it 6.5% offer of last week as it couldn’t support the negative economic effects of any strike activity.
Although the wage agreements, which were also concluded with UASA, have not been supported by the big four gold industry chamber members – AngloGold Ashanti, Gold Fields, Harmony Gold and Sibanye Gold – they nevertheless were “a helpful indication of where the discussion was going,” said Russell.
Pan African Resources’ agreement with the NUM included a gain share or profit share component whereas Village Main had no such offer, although in the latter case, it is a reminder of how economic expedience focuses the minds of employers and unions.
Aquarius Platinum concluded a wage agreement similar in nature to Pan African and Village Main earlier this year at its Kroondal Mine when it was made plain it could not support a higher increase.
“That the producers and the unions can find one another in the interests of preserving these operations indicates our mutual desire to achieve an affordable and sustainable settlement,’ said Elize Strydom, chief negotiator for the chamber in a statement. The discussions with other gold producers would continue today, she said.
It will be interesting to see what NUM rival the Association of Mineworkers & Construction Union (AMCU) makes of NUM’s agreement. AMCU has so far stood clear of NUM’s call to strike asking only that its members be protected whilst they attended work.
Last week the NUM called a strike from the night shift of September 3. Russell told Reuters that it had been observed with the chamber subsequently updating that 70% of the 23 mines that are represented in the chamber’s wage negotiations had been completely or severely or partially affected by strike action.
Only AngloGold Ashanti’s Mponeng, Savuka and TauTona mines, Kusasalethu owned by Harmony Gold (morning shift only), Evander, Sibanye Gold’s Driefontein and Tau Lekoa reported strike-free operations from Tuesday night.
Graham Briggs, CEO of Harmony Gold, confirmed a strike by NUM members had started at the company’s mines, but added they had been peaceful so far.
“We continue to engage with all the unions to reach a wage settlement and to curtail the strike. We are encouraged by the responsible and peaceful conduct of employees engaged in the strike, and urge all parties to uphold the law and all agreements,’ he said.
