Gold producers affiliated with the Chamber of Mines (CoM) would not engage in any further gold sector wage negotiations with the Association of Mineworkers and Construction Union (AMCU), which rejected their final wage offer, CoM chief negotiator Dr Elize Strydom said last week.

The gold producers, which comprises AngloGold Ashanti, Gold Fields, Harmony Gold, Pan African Resources, Rand Uranium, Sibanye Gold and Village Main Reef, finalised a two-year wage settlement with the National Union of Mineworkers, Uasa and Solidarity, which collectively represents about 72% of employees of gold mining companies represented by the CoM.

The final agreement comprises an 8% increase for category four and five employees and rock-drill operators, and a 7.5% increase for all other employees, effective July 1, with employees receiving a further consumer-price-index-linked increase effective July 1, 2014.

Further, the current monthly living-out allowance of R1 640 will increase to R2 000 in two R180 tranches on September 1, 2013 and September 1, 2014.

The settlement would add about R1.5-billion to the seven gold producers’ wage bill over the next 12 months and would be applied to all gold-industry employees, including those represented by AMCU, Strydom said at a media briefing in Johannesburg.

She noted that AMCU had indicated that it did not accept the final offer and that its members had given the union leaders a mandate to strike, but also to continue speaking to the chamber.

She added that the union, which had 19% representation among gold-sector employees, had not yet issued a strike notice.

“Should AMCU decide to strike, the CoM could, in terms of the law, get an interdict stating that the union’s strike is unprotected, as a wage agreement had lawfully been concluded,” Strydom explained.

She added that AMCU had requested a meeting with the CoM to take place on September 13.

“However, we will be meeting against the backdrop of a concluded wage agreement that will also apply to AMCU’s members and would not negotiate further on the topic of wages,” she said.

However, she indicated that the CoM did wish to work with AMCU, as well as the other unions, over the next two years around issues that were highlighted during the wage negotiation process and which required more attention.

These issues include employee indebtedness, disease and injury benefits, organisational design and the Sindisa project, which relates to improving working patterns.

Strydom emphasised the seriousness of employee indebtedness and the impact this had on employees’ wage demands.

She said that, while some companies had initiatives aimed at educating employees about managing their finances, such initiatives had to be implemented on a much larger scale.

“We also feel that the unions can play a valuable role in addressing this as they are closer to the workers,” she added.

However, the issue surrounding the ways in which credit is provided to workers, which is linked to garnishee orders, also has to be dealt with and the CoM has formed a task team to look into this.

Meanwhile, Strydom said that, while the wage settlement had been reached at levels that were more than employers would have preferred, “we took the view that the agreement has helped secure stability in the industry for a two-year period. Overall, the settlement represents a reasonably balanced outcome in the best interests of share- holders, management and employees”.

She added that, with the exception of Pan African Resources, the gain share proposal was not included in the final agreement, as unions indicated that there was not much appetite for it among workers, which allowed the producers more room to add to the basic wage.

“However, the gain share proposal is considered a potentially valuable mechanism for sharing the benefits of the industry, and a number of producers intend to pursue it in the future.”

Meanwhile, Solidarity commented that the signing of the two-year wage agreement was a victory for collective bargaining and sound labour relations.

“The negotiations took place against the backdrop of violent unprotected strikes and immense pressure in the gold industry. The agreement is not satisfactory for trade unions or employers, but is indicative of compromises that both parties had to make in order to put the sustainability of the gold industry first,” Solidarity general secretary Gideon du Plessis said.

The union called on AMCU to sign the final agreement in the interest of the sustainability of the gold industry and, particularly, in the interest of its members’ job security.

Sibanye Gold CEO Neal Froneman commented that the company was pleased that it had reached a two-year agreement with the unions in a relatively short period and at increases close to inflation.

“We are also pleased with the further commitment to exploring initiatives which will contribute to improved utilisation of our assets and enhancing productivity,” he said.

Gold One acting CEO Christopher Chadwick commended the parties on concluding the wage deal in a peaceful and constructive manner.

“We look forward to two years of focused and uninterrupted production,” he said.

Coal Sector Negotiations
Meanwhile, negotiations in the coal sector are ongoing, with employers having made a revised offer of between 7% and 8%,” Strydom said.

Solidarity expresses the hope that the trade unions and the chamber will reach a settlement during the last round of negotiations on September 18, thereby limiting the risk that problems will arise regarding the supply of electricity.