SOUTH African gold producers said the “ball was back in the unions’ court” after a three-year wage increase offer ranging between 5.5% and 6.5% for lower category employees was rejected.
“By definition, negotiation is a process of give and take – a two-way street,” said Motsamai Motlhamme, chief negotiator at the Minerals Council which is representing AngloGold Ashanti, Harmony Gold, Village Main and Sibanye-Stillwater in gold wage negotiations.
“The companies urge the unions to narrow their demands, particularly non-wage demands, so that the companies in turn can focus on improving wages within the context of affordability” said Motlhamme. “They ask the unions to consider the gold industry’s precarious position and economic realities.
“The ball is back in the unions’ court, and we hope that we will engage constructively when we meet again, so that we can move forward,” he said.
In total, there were at least 137 demands tabled of which 62 have cost implications for the companies, “… and many of them significant”, said the Minerals Council earlier this month.
Among the key benefits on which offers or concessions have been made include an extension of the medical contribution for category 4 to 8 employees to 60% companies/40% employees for the duration of the agreement. Another benefit offered is an increase of the medical incapacity benefit to R60,000 over a three-year period.
The Minerals Council also said producers tabled an increase of R2,000 per year in severance pay while they also agreed to engage “… at a company level with the Igula Provident Fund, or any other fund, as an additional retirement fund option”.
All four unions involved in the discussions – the National Union of Mineworkers (NUM), the Association of Mineworkers & Construction Union (AMCU), UASA and Solidarity rejected the council’s opening offer which ranged from 5.5% to 6.5% for Category 4 underground employees, and 3% to 4.5% for miners and artisans, and officials.
The NUM in May tabled an annual wage increase demand of between 15% and 18.5% until basic monthly pay for entry-level underground workers rises to R10,500 a month. While this was less than the 75% opening demand submitted by the NUM in previous wage negotiations, it needs to be compared to the current inflation rate of 4.6%. In June, AMCU asked for basic wages of R12,500 per month for gold industry members.
