JOHANNESBURG (miningweekly.com) – A series of bilateral meetings between South African gold producers AngloGold Ashanti, Evander Gold Mines, Harmony Gold, Sibanye Gold and Village Main Reef and each of the trade unions will be taking place in the coming week.

On Tuesday, the companies engaged with Solidarity and Uasa individually on their specific demands.

“We welcome the constructive feedback we have had from all the unions thus far and look forward to engaging with the NUM on Monday,” Chamber of Mines negotiator Dr Elize Strydom said.

She had noted in an earlier statement that the chamber had also met with representatives of the Association of Mineworkers and Construction Union (AMCU) and that discussions between the parties had been constructive.

Earlier this month, AMCU representatives walked out of wage negotiations, taking issue with the findings of a producer-sanctioned audit that put the union’s membership at around 30% of the gold companies’ total workforce.

According to data released by the gold producers, the National Union of Mineworkers currently accounted for 52% of union representation in the gold industry, followed by AMCU, with 30%, and Uasa and Solidarity at 7% and 2% respectively.

Strydom reiterated that the companies were seeking to reach an agreement that would sustain the industry [and jobs] for decades to come, adding that offers made to unions three weeks ago were determined by the companies’ economic models, at a time when the gold price was $1 200/oz.

The gold price has subsequently declined by nearly $100/oz – the lowest level in more than five years.

“Our industry’s resilience is being severely tested and tens of thousands of jobs are potentially at risk. The gold companies’ share prices are at multiyear lows, reflecting investors’ bearish outlook on the gold price and growing uncertainty around the viability of South African production given its spiralling cost base. Now, more than ever, we need to create certainty in our industry and preserve jobs.

“Eventually we will need to reach an agreement with all unions. Whether that agreement sustains this industry for another generation or more is up to us,” Strydom added.

Wage negotiations would continue on July 27. Further bilateral meetings would be taking place during the course of next week.