Media releases

Gold companies table wage offers to unions

Johannesburg, 18 July 2018: At the afternoon session of the second day of gold wage negotiations between gold producers (AngloGold Ashanti, Harmony Gold, Sibanye-Stillwater and Village Main Reef) and unions (AMCU, NUM, Solidarity and UASA), each of the four companies tabled offers in respect of wages and benefits for the different categories represented in the bargaining units.

Speaking at this afternoon’s session, Chief Negotiator, Motsamai Motlhamme, noted that: “The industry has sought to find a balance between employees’ expectations and preserving the long-term viability and sustainability of the industry.”

In total, there were at least 137 demands tabled, 62 of which have cost implications for the companies, and many of them significant.

The companies, under the auspices of the Minerals Council, have proposed a wage agreement for three years.

Given that the four different companies find themselves in different circumstances, the companies have tabled different offers. On wages, for the first year, these range between:

  • 5.5% and 6.5% for Category 4 underground employees;
  • 3% and 4.5% for miners and artisans, and officials.

This is against a background of a stagnant gold price, rising costs and falling profitability of the sector. Currently, CPI is estimated at around 4.6%.

Among the key benefits on which offers or concessions have been made include:

  • Extension of the medical contribution for category 4 to 8 employees to 60% companies/40% employees for the duration of the agreement.
  • Increase of the medical incapacity benefit to R60,000 over a three-year period.
  • Increase of R2,000 per year in severance pay.
  • Agreement to engage at a company level with the Igula Provident Fund, or any other fund, as an additional retirement fund option. This is conditional on compliance by these funds with all applicable legislation, and the interests of all employees.

Company-specific offers are tabled below:

AngloGold Ashanti:

AngloGold Ashanti currently employs 8,288 people within the three bargaining units.

 Year 1Year 2Year 3
Cats 4-8, underground employees R450, which equates to a 5.5% increase on basic pay R475 R500
Miners, Artisans & Officials 4.5% CPI CPI

Harmony:

Harmony currently employs 32,520 people within the three bargaining units.

 Year 1Year 2Year 3
Cats 4-8 underground employees R500, which equates to a 6.5% increase on basic pay R525 R550
Miners, Artisans & Officials 4.5 % CPI CPI

Sibanye-Stillwater:

Sibanye-Stillwater currently employs 32,414 people within the three bargaining units.

 Year 1Year 2Year 3
Cats 4-8, underground employees R450, which equates to a 5.6% increase on basic pay R450 R475
Miners, Artisans & Officials 3% 3% 3.5%

Village Main Reef:

Village Main Reef currently employs 6,295 people within the three bargaining units.

 Year 1Year 2Year 3
Cats 4-8, underground employees R450, which equates to a 5.5% increase on basic pay R475 R500
Miners, Artisans & Officials 3.5 % CPI CPI

The parties will meet again on 25 July 2018, at which time the unions may seek clarity on the offers made, and respond to the offers.

Queries

Charmane Russell, +27 (0)11 880 3924 or +27 (0)82 372 5816, This email address is being protected from spambots. You need JavaScript enabled to view it.

Memory Johnstone, +27 (0)11 880 3924 or +27 (0)82 719 3081, This email address is being protected from spambots. You need JavaScript enabled to view it.

AngloGold Ashanti [logo]
Sibanye-Stillwater [logo]
Harmony [logo]
Village Main reef [logo]
For more information, contact:

Motsamai Motlhamme
Minerals Council South Africa
+27 (0)11 498 7400 or
+27 (0)82 202 6734

Charmane Russell
+27 (0)11 880 3924 or
+27 (0)82 372 5816
charmane@rasc.co.za

Memory Johnstone
+27 (0)11 880 3924 or
+27 (0)82 719 3081
memory@rasc.co.za