Num rejects 4% wage hike offer

[miningmx.com] — THE National Union of Mineworkers (Num) said on Monday it had rejected a 4% pay rise offer from gold companies.

The union is demanding a 14% rise in wages.

“We totally reject the offer by the Chamber of Mines. We will meet them again on the 5th of July and we hope they will come up with a better offer than the 4% put forward,” Num spokesperson Lesiba Seshoka said.

“Our members are thirsty for strike action and this insult will invoke anger in them …we will see whether the (companies) mean business,” he added.

The chamber is negotiating over the wage demands on behalf of AngloGold Ashanti, Gold Fields and Harmony Gold.

Elize Strydom, the chamber’s negotiator for the gold sector, has voiced concerns over the demands for a rise above inflation, which stood at 4.2% in April.

“It (is) important to be aware of the economic realities of the gold mining industry,” she said in an emailed statement.

“Parties should also be mindful of the fact that production has been consistently declining and that the industry is facing high cost pressures such as electricity, wages, fuel, steel and other input costs.”

The gold mining companies usually reach two-year wage deals with the union and the current contract expires on June 30.

The union is also demanding a 14% pay rise from coal mining companies. The industry body is expected to respond to the union demands from the coal sector on Tuesday.