JOHANNESBURG (miningweekly.com) – In a deviation from the often-polarised nature of wage talks in the platinum sector and elsewhere in the South African mining industry, platinum miner Royal Bafokeng Platinum (RBPlat) and the National Union of Mineworkers (NUM) have inked a three-year wage deal following engagements described by the two parties as “constructive, respectful and mature”.

The first phase of the agreement, which came into play on July 1 and would extend to June 30, 2017, incorporated a performance-linked efficiency improvement model and would increase black-owned RBPlat’s labour bill by around 9.1% over three years.

It would apply to all employees within the A to D1 categories, which constituted 89% of the company’s workforce, or 2 600 employees.

RBPlat CEO Steve Phiri told a media gathering on Thursday that each year of the agreement would see workers in these categories receive increases on their basic pay, on a sliding scale.

Workers employed as development or stoping machine operators – commonly known as rock drill operators (RDOs) – would receive a 10.5% increase in years one and two and a 9.5% increase in year three.

A1 to B7 Band employees – excluding RDOs – would receive yearly increases of 10% in year one and two, and 9% in year three, while those in the Supervisory Bargaining Unit would receive an 8% salary rise in years one and two, and 7% in year three.

NUM deputy secretary-general Tshimane Montoedi said the agreement had “reasserted NUM’s hegemony in the mining sector” and would see the midtier platinum producer’s lowest-paid workers receiving an over R12 000 basic salary by the end of the third year.

Including bonuses and overtime, this figure would increase to R14 594.

“Unlike others, we didn’t have to shout that we wanted R12 000, but realised that the best was to agree [to a wage deal and] engage [with the company] around a boardroom table. We are also appreciative of the level of maturity and discipline displayed by the parties in the negotiation, which took place in an atmosphere characterised by reciprocal obligation and elements of trust, respect and good faith.

“What is also important about the agreement is that the lowest-paid worker gets the biggest increase, which assists in closing the gap between the wage levels,” Montoedi asserted.

Describing the deal as a “value proposition”, Phiri added that, in recognition of the importance of housing and accommodation, the wage agreement would include a housing component in the form of the recently concluded R2.8-billion RBPlat Employee Housing Scheme.

The scheme, announced last month, would see 3 100 houses built for employees over five years, enabling employees to create personal wealth through the ownership of an asset that would appreciate over time and supported a family-orientated lifestyle.

Thus far, 422 houses had been built as part of an initial pilot housing project bordering Rustenburg, in the North West.

Employees would be required to contribute a portion of their monthly housing subsidy towards the bond payment of their house.

The existing living-out allowance and homeowners allowance would, thus, be gradually phased out and applied instead as housing fund contributions as employees were allocated homes.

“By 2030, all our employees will have homes,” said Phiri.

He further explained that, after the initial three-year wage agreement, the two parties would “pause” to determine if the terms of the agreement remained aligned to the consumer price index and the industry’s minimum wage.

“If so, the agreement would, by mutual agreement, be extended by another two year until June 30, 2019,” Phiri commented.

RBPlat believed that the landmark agreement would provide it with a “critical measure of stability”, as it continued to focus on growth and expansion, while NUM lauded the deal as one that would “finally change the lives of mineworkers for the better.”

Johannesburg-listed RBPlat operates the Bafokeng Rasimone platinum mine and is currently developing the Styldrift 1 project, both of which are located in the North West.