JOHANNESBURG (miningweekly.com) – South Africa’s gold producers on Monday declared a wage dispute with the Association of Mineworkers and Construction Workers Union (AMCU) and referred the matter to the Commission for Conciliation, Mediation and Arbitration (CCMA) for mediation.

Chief negotiator for the gold producers, Dr Elize Strydom, said that the industry was unable to yield to AMCU’s demands, which had not shifted since the start of the wage talks.

Last week, three separate unions in the wage negotiations, the National Union of Mineworkers (NUM), Uasa and Solidarity referred the wage talks to the CCMA, a move Strydom described as “entirely normal”, signifying the start of a “structured, orderly mediation process”.

Mediation between the unions and the CoM – which represented gold producers AngloGold Ashanti, Evander gold mine, Gold Fields, Harmony Gold, Rand Uranium, Sibanye Gold and Village Main Reef – would start on Thursday.

AMCU on Friday criticised the move, saying it was “premature to pull out and run to the CCMA, even though the days which parties agreed to have not been exhausted”.

Despite AMCU’s resistance to a CCMA dispute, Charmane Russell, on behalf of the gold producers, said that it would be “very unusual” if the parties did not resolve the dispute under the auspices of the commission, adding that every wage talk over the past 20 years had headed to the CCMA.

However, should a party not arrive at the CCMA, the commissioner might decide that no resolution was possible and issue a certificate that would allow for a strike or lock-out.

“These options would always be a last resort – by the parties and the mediators,” she stated.

AMCU, in a statement last week, called on the CoM to negotiate in good faith, “be realistic” in their approach and revise their offer for the sake of the mining industry in South Africa.

The union, representing about 17.2% of the employees in the relevant bargaining unit, was proposing a minimum entry-level wage of R11 500 for surface workers and R12 500 for underground workers excluding accommodation, bonuses and benefits.

The NUM, with a 64% membership base, was demanding a surface entry-level salary of R7 000 a month, and an underground and opencast entry-level salary of R8 000 a month, in addition to several other high-cost items.

Solidarity requested a cost-to-company increase of 10%, while Uasa tabled an 18% hike.

The industry improved its wage offering from 4% to 5%.

According to the chamber, the current guaranteed payout for employees comprised a basic monthly wage of R5 000 for underground employees and R4 350 for surface employees, as well as R1 640 for housing benefits or allowances, a R748 employer provident fund contribution and a R792 medical benefit.

Each employee also received a R70 food allowance and R417 holiday leave allowance. This excluded overtime and bonuses.

The gold producers’ opening offer of 4% would have raised the underlying guaranteed pay of entry-level underground employees to at least R8 900 a month, and surface workers to R8 000, adding R900-million to the industry’s yearly wage bill.

AMCU could not be reached for comment.