NUM describes gold producer wage concessions as “an act of war”

THE National Union of Mineworkers (NUM) said it viewed the rejection of its adjusted wage and benefits demands in gold sector negotiations as “an act of war”.

The NUM said it made concessions but the upwards adjustments made in turn by AngloGold Ashanti, Harmony Gold, Sibanye-Stillwater and Village Main Reef, were insufficient, it said. The gold producers are being represented in the negotiations by the Minerals Council.

The Minerals Council said its member offers were “credible” given the pressure under which the South African gold industry was operating. Gold producers offered between 6% and 7.2% increases for category 4 (entry level) underground employees, and 3.5% and 4.5% for miners and artisans, and officials.

“Despite the current precarious position of the industry as a result of a stagnant gold price, rising costs and falling profitability, the offers made today are credible, and – at the entry level – well above the current CPI rate of 4.6,” said chief negotiator on behalf of the gold producers, Motsamai Motlhamme, in a statement issued

Said Motlhamme: “We urge the unions and employees to carefully consider the offers before we meet again. Only by ensuring the sustainability of the industry will mines remain viable and able to sustain jobs”.