Five of South Africa’s major gold producers have opted to try a fresh approach in this year’s wage talks‚ drawing on experience in the platinum sector where the traditional positional bargaining resulted in unsustainable wage increases and forced a restructuring.
AngloGold Ashanti‚ Sibanye Gold‚ Harmony Gold‚ Evander Gold Mines and Village Main Reef want to agree on an economic and social sustainability pact.
The companies argue they cannot afford the 80-100% increase some of the four unions are demanding‚ warning this would cut short the lives of marginal mines‚ resulting in job losses.
A five-month strike in the platinum sector ended in June with increases of up to R1000 over three years for the lower categories of employees.
Gold producers have claimed the bulk of SA’s mines are running at narrow profit margins due to a flat rand gold price and hikes in costs such as water‚ wages and materials eroding gains.
While executives and negotiators are reluctant to discuss exactly what the agreement will encompass‚ it’s likely to include an inflation-related increase‚ coupled with the sharing of any upswing in the gold price and improved productivity‚ as well as a host of noncash items‚ such as housing‚ transport‚ pension and medical aid.
This is expected to be part of what the Chamber of Mines will present to the unions after they have elaborated on the about 80 demands that are on the table at this year’s negotiations.
Chamber of Mines chief negotiator Elize Strydom earlier said the deal could be presented yesterday after the Association of Mineworkers and Construction Union (Amcu) tables its demands.
“Stripped of everything‚ it amounts to that we test the economic consequences of everything we are going to do in these negotiations‚” said Strydom.
This would also mean refraining from introducing wage offers before the pact is discussed.
“It (the pact) is new because it is unusual for employers to put a proposal on a table. We want them to reflect‚ take it back (to their members) come back and interrogate until we have found each other‚” said Strydom.
On Monday‚ all unions in the sector‚ including the majority union‚ the National Union of Mineworkers‚ and minority unions‚ Solidarity and the United Association of SA (Uasa)‚ tabled their demands.
Amcu has already indicated it was not interested in schemes but rather wage increases. The other unions have said they would wait for the proposal from producers.
On Monday‚ the parties agreed to the appointment of three independent facilitators‚ with former acting director of the Commission for Conciliation‚ Mediation and Arbitration Mo Alli as chairman.
The NUM is seeking entry-level wages of R10500 for underground workers‚ or an 80% increase. It wants the living-out allowance raised from R2000 to R3500.
Amcu is demanding the addition of between R6500 and R7000 to the basic salary of all employees. Entry-level underground mine workers’ basic salary is about R5700‚ although their cost to company is twice this.
Solidarity also tabled its demands on Monday and is seeking a 12% increase.
Job security and sustainability were key concerns‚ general secretary Gideon du Plessis said. It is also seeking to increase the retirement age from 60 to 63 as this would be within international norms‚ allowing both skills retention for the employer and greater financial security for employees.
Negotiators for Uasa have a mandate to maximise take-home pay‚ rather than other benefits. The union is aiming for a R2500 increase at the entry level.
Of the 94000 workers within the negotiations‚ the NUM represents 54%‚ Amcu 30%‚ Uasa 7% and Solidarity 2%.
Gold majors want pact
AngloGold Ashanti‚ Sibanye Gold‚ Harmony Gold‚ Evander Gold Mines and Village Main Reef want to agree on an economic and social sustainability pact.
The companies argue they cannot afford the 80-100% increase some of the four unions are demanding‚ warning this would cut short the lives of marginal mines‚ resulting in job losses.
A five-month strike in the platinum sector ended in June with increases of up to R1000 over three years for the lower categories of employees.
Gold producers have claimed the bulk of SA’s mines are running at narrow profit margins due to a flat rand gold price and hikes in costs such as water‚ wages and materials eroding gains.
While executives and negotiators are reluctant to discuss exactly what the agreement will encompass‚ it’s likely to include an inflation-related increase‚ coupled with the sharing of any upswing in the gold price and improved productivity‚ as well as a host of noncash items‚ such as housing‚ transport‚ pension and medical aid.
This is expected to be part of what the Chamber of Mines will present to the unions after they have elaborated on the about 80 demands that are on the table at this year’s negotiations.
Chamber of Mines chief negotiator Elize Strydom earlier said the deal could be presented yesterday after the Association of Mineworkers and Construction Union (Amcu) tables its demands.
“Stripped of everything‚ it amounts to that we test the economic consequences of everything we are going to do in these negotiations‚” said Strydom.
This would also mean refraining from introducing wage offers before the pact is discussed.
“It (the pact) is new because it is unusual for employers to put a proposal on a table. We want them to reflect‚ take it back (to their members) come back and interrogate until we have found each other‚” said Strydom.
On Monday‚ all unions in the sector‚ including the majority union‚ the National Union of Mineworkers‚ and minority unions‚ Solidarity and the United Association of SA (Uasa)‚ tabled their demands.
Amcu has already indicated it was not interested in schemes but rather wage increases. The other unions have said they would wait for the proposal from producers.
On Monday‚ the parties agreed to the appointment of three independent facilitators‚ with former acting director of the Commission for Conciliation‚ Mediation and Arbitration Mo Alli as chairman.
The NUM is seeking entry-level wages of R10500 for underground workers‚ or an 80% increase. It wants the living-out allowance raised from R2000 to R3500.
Amcu is demanding the addition of between R6500 and R7000 to the basic salary of all employees. Entry-level underground mine workers’ basic salary is about R5700‚ although their cost to company is twice this.
Solidarity also tabled its demands on Monday and is seeking a 12% increase.
Job security and sustainability were key concerns‚ general secretary Gideon du Plessis said. It is also seeking to increase the retirement age from 60 to 63 as this would be within international norms‚ allowing both skills retention for the employer and greater financial security for employees.
Negotiators for Uasa have a mandate to maximise take-home pay‚ rather than other benefits. The union is aiming for a R2500 increase at the entry level.
Of the 94000 workers within the negotiations‚ the NUM represents 54%‚ Amcu 30%‚ Uasa 7% and Solidarity 2%.
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