[miningmx.com] – THE Chamber of Mines of SA (CoM) today lifted its gold wage increase offer to 5% from 4% tabled earlier this month.
But it couldn’t stop unions declaring a dispute – a development described by the CoM as being “in the interests of everyone”.
The National Union of Mineworkers (NUM), UASA, and Solidarity have referred the wage talks to the Council for Conciliation, Mediation and Arbitration (CCMA), a process that can take up to 30 days to complete. Unions had earlier requested a 60% to 100% wage improvement for certain employee levels.
“To be honest, this is probably in the interests of everyone. It is very expeditious,” said Charmane Russell, spokesperson for the CoM which is representing AngloGold Ashanti, Sibanye Gold, Gold Fields, Harmony Gold, and Village Main among others.
The Association of Mineworkers & Construction Union (AMCU) had requested more information from the chamber before deciding its next move, the CoM said in a brief statement today.
Legal strike activity, in which workers will not be paid, can be called after a deadlock is declared following the dispute. This is the path that some market commentators think will have to take place before an agreement between the sides can be struck.
The CoM made its first wage offer on July 15 much to the derision of unions, including the NUM, which described it as “an insult”. The latest offer is roughly in line with CPI, perhaps with some slight, upwards wriggle room for adjustment.
In addition to the 5% wage increase, there is also 5% increase offer for accommodation related allowances such as living out, housing and first-time buyer allowances, the CoM said in its statement.
“The effect of this offer would be to raise the guaranteed pay of entry-level underground employees for major gold-producing companies to at least R9,000 per month,” said the CoM.
“These figures include basic wage, living-out allowance, medical benefit and retirement contribution and exclude statutory benefits, other allowances, profit share, overtime and bonuses,” it said.
The higher wage offer comes against a slightly improved revenue picture for South Africa’s gold companies following a $120 per ounce increase in the gold price in the last week to about $1,340/oz, although on the downside, the rand has strengthened against the dollar.
Gold price increases can just as easily fall, however. Standard Bank Commodities said yesterday that gold’s next support level was at $1,300/oz.
The NUM represents 65.5% of gold industry employeers, UASA (6.9%), Solidarity (2.4%) while AMCU represents 17% of workers. A further 8.4% of labour are not unionised.
All in all, the negotiations represent 120,000 of the 140,000 employees in the South African gold sector which makes them pretty much representative.
