Media releases

Gold producers table conditional offer

Johannesburg, 21 August 2018. Gold wage negotiations between producers, AngloGold Ashanti, Harmony, Sibanye-Stillwater and Village Main Reef, and representative unions, the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM), Solidarity and UASA, continued today.

Since wage negotiations started on 11 July 2018 - against a background of a stagnant gold price, rising costs and falling profitability of the sector - the gold producers have tabled two credible offers and have made a number of concessions related to non-wage demands. However, there have not been any significant moves on the part of unions. At the outset of wage negotiations, there were at least 137 demands tabled, 62 of which have significant cost implications.

Chief Negotiator on behalf of the gold producers, Motsamai Motlhamme noted in the plenary session with unions today that: “Without wishing to repeat the economic reality of the industry in this forum again, it is important that all parties take into account that ours is a mature industry. As employers, we cannot accede to all the demands tabled by the unions - they are unaffordable and will severely impact the sustainability of old and marginal mines, in particular, and the industry’s ability to continue to provide employment and benefits to employees.”

In an effort to reach common ground, the companies tabled a Conditional Offer for a period of three years. The conditional offer is aimed at improving employee wages and benefits and is conditional on the removal of a number of high-cost demands.

For the first year, the Conditional Offers made by the companies range between:

  • 6.2% and 8.2% for Category 4 underground employees; and
  • 4% and 5% for miners and artisans, and officials.

The key benefits on which concessions have been made on non-wage demands include:

  • Extension of the medical contribution for category 4 to 8 employees to 60% companies and 40% employees for the duration of the agreement.
  • Increase of the minimum medical incapacity benefit to R60,000 over a three-year period.
  • Increase of the minimum severance pay to R36,000 over a three-year period.
  • Agreement to engage at 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.
  • Agreement to introduce a 0.5% service increment per year for Officials from 1 July 2019 at some companies.

Company-specific Conditional Offers:

AngloGold Ashanti

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

 Year 1Year 2Year 3
Categories 4-8 employees R625, which equates to a 7.7% increase in basic pay for Category 4 underground employees R650, which equates to a 7.4% increase in basic pay for Category 4 underground employees R675, which equates to a 7.2% increase in basic pay for Category 4 underground employees
Miners, Artisans & Officials 5% CPI CPI

Harmony

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

 Year 1Year 2Year 3
Categories 4-8 employees R625, which equates to an 8.2% increase in basic pay for Category 4 underground employees R650, which equates to a 7.8% increase in basic pay for Category 4 underground employees R675, which equates to an 7.6% increase in basic pay for Category 4 underground employees
Miners, Artisans & Officials 5% increase to standard rate of pay CPI increase to standard rate of pay CPI increase to standard rate of pay

Sibanye-Stillwater

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

 Year 1Year 2Year 3
Categories 4-8 employees R500, which equates to a 6.2% increase in basic pay for Category 4 underground employees R500, which equates to a 5.9% increase in basic pay for Category 4 underground employees R520, which equates to a 5.8% increase in basic pay for Category 4 underground employees
Miners, Artisans & Officials 4% CPI CPI

Village Main Reef

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

 Year 1Year 2Year 3
Categories 4-8 employees R550, which equates to a 6.8% increase in basic pay for Category 4 underground employees R575, which equates to a 6.6% increase in basic pay for Category 4 underground employees R575, which equates to a 6.2% increase in basic pay for Category 4 underground employees
Miners, Artisans & Officials 4% CPI CPI

The NUM rejected the offer and advised that it will formally declare a dispute.
Negotiations between the gold producers and other labour unions will continue tomorrow, Wednesday, 22 August 2018. The producers welcome the commitment by AMCU, Solidarity and UASA to continue to engage.

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.
Website: www.goldwagenegotiations.co.za

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