ANGLOGOLD Ashanti has agreed a new three year wage deal with unions representing about 62% of its South African workforce in which lower category employees will see their wages increase by R1,000 per month every year over the agreement period.
The agreement includes a new shift arrangement which the group said was aimed at returning its operations to profitability. AngloGold mines from one underground operation – Mponeng – and from Mine Waste Solutions, a gold re-treatment company. Some 13% of total output is mined from South Africa.
“We are pleased to have reached this agreement after robust but constructive talks with the unions who represent most of our employees in South Africa,” said Chris Sheppard, AngloGold Ashanti’s COO: South Africa in an announcement to the JSE.
“The new shift arrangement is an important factor, as it provides an opportunity for us to realise improvements in productivity and safe production, which are essential to the long-term sustainability of the business,” he said. Shares in AngloGold had edged just under half a percent lower in Johannesburg after the announcement.
In terms of the agreement, category 4 to 8 employees will be paid R700 in year one, R800 in year two and R900 in year three. In agreeing to new shift arrangements the wage agreement makes provision for a shift arrangement increase of R300 in year one, R200 in year two and R100 in year three.
The wage agreement for the Miners & Artisans and Officials comprises 5.5% on the standard rate with an additional 1% in consideration for agreeing to and working the new shift arrangements. This final offer, which will result in an increase on the standard monthly rate of 6.5% for the first year, will be carried through to the second and third years as 6.5% or CPI, whichever is the greater for the balance of the agreement, said AngloGold.
The wage agreement was signed on today with the Association of Mineworkers & Construction Union (AMCU), UASA and Solidarity which comprises about 62% of total employees. Talks are ongoing with the National Union of Mineworkers (NUM) which represents 32.8% of AngloGold Ashanti’s employees in South Africa. Non-union members account for 5.1% of the firm’s South Africa employees.
The agreement is effective from July 1.
Chief negotiator on behalf of the gold producers, Motsamai Motlhamme said: “The agreement reached between AngloGold Ashanti and AMCU, UASA and Solidarity … is focused on optimising the company’s remaining operation in South Africa.
“We are pleased that the parties have been able to engage and conclude an agreement with no disruption to the business. The agreement was reached within a flexible negotiating structure which has evolved over a number of years to allow for companies with vastly different economic and operating circumstances to be accommodated,” he said.
Wage negotiations in respect of the Harmony, Sibanye-Stillwater and Village Main Reef with AMCU, the NUM, UASA and Solidarity were continuing under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA). “Discussions with all unions have continued to be constructive and we are hopeful that we will be in a position to report further progress soon,” said Motlhamme.
