The third round of gold mining sector wage negotiations took place on Wednesday, at which the Minerals Council South Africa was peppered with questions by gold sector unions seeking to gain clarity about feedback on the unions’ demands, especially the low opening offer, said trade union Solidarity general secretary Gideon du Plessis.

Solidarity further requested the council put an end to its “tendency to provide erratic statistics since this merely creates distrust about the integrity of its figures, which almost led to the derailment of negotiations previously in 2015”.

Du Plessis said figures quoted by the council regarding the number of people employed in the gold sector are an example of the confusing statistics provided.

He pointed out that the Minerals Council indicated in a formal presentation to trade unions that there are 112 000 full-time employees in this sector. However, in an information sheet distributed immediately afterwards, it is indicated that there are fewer than 100 000 employees, but on the council’s website the figure mentioned is 120 000.

The various mining houses are said to have made presentations regarding their financial situation and it appears that about 50% of mines are marginal or nonprofitable.

“On the other hand, the Minerals Council often cites statistics to the effect that between 70% and 80% of gold mines are not profitable. Again, this creates the impression of thumbsucking,” Du Plessis stated.

He further remarked that Solidarity also requested that each mining house provide an indication of the salary bill split between miners working underground and head office employees.

“Solidarity is not denying that the mines are under pressure. That is why we take the view that salary increases should go hand in hand with production. We, however, maintain that the mining houses’ argument does not hold water when, according to the latest PricewaterhouseCoopers report on the remuneration of executive directors, the increases granted to CEOs have been extremely favourable and do not show any sign of a sector that is under pressure,” Du Plessis indicated.

Moreover, the council is said to have rejected the principle of a profit sharing scheme.

“This means it can no longer present the scheme as an alternative to a free-carry shareholding scheme included in the draft Mining Charter, something it so vehemently opposes,” Du Plessis pointed out.

Chief negotiator on behalf of the gold producers, Motsamai Motlhamme, meanwhile, urged the unions to narrow their demands, particularly non-wage demands so that the producers can focus on improving wages "within the context of affordability".

"They ask the unions to consider the gold industry’s precarious position and economic realities. The ball is back in the unions’ court, and we hope that we will engage constructively when we meet again, so that we can move forward.”

Negotiations will resume on August 1.