PAN African Resources has concluded wage agreements with the National Union of Mineworkers and UASA for their employees working at the mining firm’s Barberton Mines in Mpumalanga province.
The Barberton assets performed well for Pan African for the year ended June 30 increasing gold production 25% to 85,000 ounces – comprising about 42% of total production of around 202,000 oz. Pan African reported gold production of 179,457 oz in 2020. Production for the current (2022) financial year has been guided to about 195,000 oz.
The NUM agreed to an average annual wage increase of approximately 5.6% over a three-year term, effective from 1 July 2021 and terminating on 30 June 2024. In a separate deal, a five year agreement was signed with UASA.
In terms of the UASA deal, there would be an average increase of 5% for the first two years and a subsequent increase of 5% or inflation adjusted as measured by the consumer price index, or whichever is higher and capped at 6%.
For the fourth and fifth years of the UASA agreement, employees will receive an average annual increase of 5% or CPI, whichever is higher, capped at 6%.
The parties have, however, agreed to re-negotiate these increases in the event of CPI being lower than 4% or higher than 7.5%, for each of these two years.
Assuming, a CPI rate of 5% for the initial three-year period, the NUM and UASA wage increases will result in an average annual increase of approximately 5.4%, compound annually, for these bargaining units over the period, said Pan African.
“We are pleased with the outcome of the negotiations and commend the constructive spirit in which they were conducted,” said Cobus Loots, CEO of Pan African Resources.
